Skip to main content

You need to quote your PAN for more transactions now

The cover of PAN has been gradually extended by the Income Tax Department. From opening bank accounts, demat accounts, and property transactions, the mandatory use of PAN has been gradually increased to cover more transactions. The transactions that already required PAN include sale or purchase of property valued at Rs 5 lakhs or more, sale or purchase of motor vehicles other than two-wheelers and bank deposits exceeding Rs 50,000. Telephone connection applications, opening of bank accounts, restaurant bills of over Rs 25,000 and mutual fund investments of Rs 50,000 and above also needed PAN to be quoted.

More transactions need PAN    

Now, you have to present your PAN card for a purchase of jewellery worth Rs 5 lakhs or more from this month. Besides jewellery, furnishing PAN would be mandatory for some other transactions also. These include issue of a debit card by a bank. A payment of Rs 50,000 or more in a year towards life insurance premium will also require PAN. The move is expected to help the tax department track high value transactions.


   The Finance Ministry has stated that any individual who makes a transaction of Rs 25 lakhs and more, and fails to quote the PAN, will receive summons by the Income Tax Department, and he could even be penalised. Action against such defaulters will be taken by the Central Information Branch (CIB) of the Income Tax Department. The CIB will be empowered to issue notices to such individuals and also attach the property of those not responding to the summons.


   PAN is a ten-digit alphanumeric number issued in the form of a laminated card by the Income Tax Department. It is mandatory to quote PAN on returns of income and all correspondence with any income tax authority. It is mandatory to quote PAN on challans for any payments due to the Income Tax Department.

Getting a PAN    

An application for a PAN should be made only on Form 49A. It can be downloaded from the website of the Income Tax Department. Applications can be made through the Internet too. Further, request for correction in PAN data or for a new PAN card (for an existing PAN) may also be made through the Internet. If an application for allotment of PAN is submitted through the Internet and payment made through a nominated credit card the PAN is allotted on priority and communicated through email.

Identity and address proof    

Individual applicants will have to affix one recent coloured photograph stamp size (3.5x2.5 cm) on Form 49A. Also, any one document listed in Rule 114 must be supplied as proof of identity and address. Designation and code of the assessing officer concerned of Income Tax Department will have to be mentioned on Form 49A


   The documents for proof of identity in case of individual applicants, including minors and HUF applicants, can be a copy of the school leaving certificate, degree certificate of a recognised educational institution, depository account, credit card, ration card, property tax assessment order, passport, voter identity card or driving license.


   It can also be a certificate of identity signed by a MP, MLA, municipal councillor or a gazetted officer. In case the PAN applicant is a minor, any of these documents of any of the parents or guardian will serve as proof of identity. In case the PAN application is made on behalf of a HUF, any of these documents of the Karta of the HUF will serve as proof of identity.


   For address proof, you can attach a copy of the electricity bill, teleph one bill, passport, property tax assessment etc.

 

Popular posts from this blog

ICICI Pru Mutual Fund Dividend

ICICI Prudential Mutual Fund has announced dividend under the following schemes: Scheme Dividend ( Rs /unit) ICICI Pru Capital Protection Oriented Ser V Plan B-D 0.03611325 ICICI Pru Capital Protection Oriented Ser V Plan B Direct-D 0.03611325 ICICI Pru Balanced Advantage Direct-DM 0.06 The record date has been fixed as February 08, 2017. ------------------------------ ------ Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 4 Tax Saver Mutual Funds for 2017 - 2018 Best 4 ELSS Mutual Funds to invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Invesco India Tax Plan 3. Tata India Tax Savings Fund 4. BNP Paribas Long Term Equity Fund Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds  Application Forms For further information contact  SaveTaxGetRich on 94 8300 8300 ------------------------------ ------ Leave y...

What is Financial Freedom?

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)     There were many things common between our Freedom fighters. All had the Single vision (Free India), common goal (independence) and had a disciplined and focused approach. They were ready to do anything and everything and had made so many sacrifices to see India free . But the road to freedom was not easy .They had faced lot many hardships, went to jail so many times and even confronted physical and mental torture from the British. There was one more thing which proved to be an advantage to our fighters that most of them were professional lawyers. The knowledge of legal issues and its impact on our country at large has helped them counter various bills and proposed new laws by the then government. It is due to their continuous effort that we are able to achieve the goal of Independent Indi...

Hidden Bank Fees

  What Banks Hide From Customers Imagine after a peaceful and exciting holiday you receive your bank statement with steep charges. You then rush to your bank and start confronting staff members and to your dismay, you come to know that the high end debit card was charged very heavily. Wouldn't this cause damage to your finances? So remember, the world outside is full of deceptive and double cheating people. Unethical practices are always used by company sales person in order to meet the target. Credit card companies, mutual funds and bank institutions always play dirty tricks to lure customers and the practices are rampant. So here's how you should be careful while dealing with your banks: High End Debit Card Charges While opening an account with a bank you opt for a debit card with minimal charges. But later on when you upgrade your card and opt for high end debit card the annual charge rise by a good amount. Though such a card has slew of features but it all comes at a high ...

Partial withdrawal from PPF

  Public Provident Fund (PPF) account has a lock in period   If you opened a PPF account to meet your retirement needs,, think twice about withdrawing from this fund before retirement. But provided it's an emergency here are the rules. Public Provident Fund (PPF) account has a lock in period before which you cannot withdraw your money.   The partial withdrawal is allowed after the completion of 6 financial years . This means that you will be allowed a partial withdrawal from 1 April 2017. The maximum partial withdrawal allowed is the least of the following: 50 percent of the account balance at the end of fourth financial year, 31 March 15 50 percent of the account balance of the end of previous financial year, 31 March 17.   There's a loan option available on your PPF account between the fourth and the sixth financial year. You can obtain a loan of up to 25 per cent of the balance in your account. However, this will attract interest of 2 percent more than the prevailing ...

Updating a minor PAN card upon becoming adults

  Updating a minor's PAN card once they become adults A PAN card issued in the name of a minor does not contain the minor's photograph or signature, and therefore, cannot be used as a valid proof of identity. Once a minor PAN card holder turns 18, the relevant changes must be made in the PAN records. A new card is then issued bearing a photograph and signature. Application The applicant is required to fill up the "Request for new PAN card andor changes or correction in PAN data" form. The form can be filled up online by accessing NSDL's Tax Information Network website and clicking on the online PAN application tab. Information The applicant must mention the existing PAN number in the application and check the `photo mismatch' and `signature mismatch' boxes, and submit the online form. The form must also be printed out, signed by the applicant, and submitted along with two photographs. Documents Identity and address proof in the form of a copy of the app...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now