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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.

 

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