Skip to main content

Process to obtain permanent account number (PAN)

 

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


   It is also compulsory to quote PAN in all documents pertaining to economic or financial transactions notified from time-to-time by the Central Board of Direct Taxes (CBDT). These transactions include sale and purchase of immovable property and motor vehicle, certain payments to hotels, certain payments in cash, time deposits exceeding Rs 50,000 with a bank or post office, deposit of cash of Rs 50,000 or more in a bank etc. It is compulsory to quote PAN in returns of income. 


   All existing assesses, taxpayers or persons who are required to furnish a return of income, even on behalf of others, must obtain PAN. Any person, who intends to enter into economic or financial transactions where quoting PAN is mandatory, must also obtain PAN. An assessing officer may allot PAN to any person either on his own or on a specific request from such a person 


   One person can obtain and use only one PAN. Obtaining or possessing more than one PAN is against the law. 


   Some are not required to obtain or quote PAN. Those having only agricultural income and no taxable income need not have a PAN. They should file a declaration (Form 61) in respect of transactions where quoting of PAN is mandatory. Non-residents need not have a PAN. 


   In order to improve PAN related services, the Income Tax Department has authorised UTI Technology Services Ltd (UTITSL) and NSDL to set up and manage PAN Service Centers in all cities or towns where there is an Income Tax office. Location of PAN Service Centers in any city may be obtained from the local Income Tax Office.


   PAN Service Centers supply new PAN application forms (Form 49A), assist the applicant in filling up the form, collect filled forms and issue acknowledgement slips. After obtaining PAN from the Income Tax Department, they will print the PAN card and deliver it to the applicant. Nominal service charges are payable to the PAN Service Centers. 


   A PAN application can be made only on the new Form 49A.
   

These documents and information have to be submitted along with an application:


• Individual applicants will have to affix one recent, coloured photograph (stamp Size) on Form 49A

• 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 the Income Tax Department

Documents for identity proof

The documents that will serve as proof of identity in case of individual applicants, including minors and HUF:

• Copy of school leaving certificate, matriculation certificate, or degree certificate from a recognised educational institution

• Depository account

• Credit card or bank account

• Ration card or property tax assessment order

• Passport or voter identity card

• Driving license

• 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 one of the parents or guardian serves as proof of identity. In case a PAN application is made on behalf of a HUF, any of these documents in respect of the Karta of the HUF will serve as proof of identity.

Documents for address proof    

The documents that will serve as proof of address in case of individual applicants, including minors and HUF:

• Copy of power or telephone bill

• Depository account

• Credit card or bank account

• Ration card, passport or voter identity card

• Property tax assessment order

• Driving license or rent receipt

• Certificate of address


   signed by a MP, MLA, municipal councillor or a gazetted officer

• Employer's certificate 


   According to Section 160 of the Income Tax Act, a non-resident or minor may be represented by a 'representative assessee'. In such cases, the application for PAN should be made by the 'representative assessee'. 


   In case the applicant cannot sign, the left hand thumb impression should be affixed on Form 49A at the place meant for the signature, and this should be attested by a magistrate, notary public or gazetted officer, under official seal and stamp.

Popular posts from this blog

What is Electronic Clearing Service (ECS)?

  As the name suggests, it's an electronic process through which money can be transferred from one bank account to another. According to RBI, this mode is usually used for regular payments and receipts, like distribution of dividend, interest, salary, pension etc. This mode is also used for collection of bills for telephone, electricity, water, various types of taxes, payment of EMIs , investments in mutual funds , payment of insurance premium etc. There are two types of ECS , like most other banking transactions, ECS credit and ECS debit. An ECS credit is used by a bank account holder , usually a large company or an institution for services like payment of dividend, in terest, salary, pension etc. If your mutual fund pays you dividend to your bank account, of all probability it is being paid through ECS credit.ECS debit, on the other hand, is used when a company or an institution is getting money from a large number of people. For example if you are investing in a mutual fund sc...

WEALTH TAX

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 WEALTH TAX   WHAT CONSTITUTES WEALTH? For wealth tax purposes, "wealth" means property , urban land, car, jewellery , yacht, boat, aircraft and cash in hand in excess of Rs 50,000. CAUTION POINT | Do not think you will have an easy escape from wealth tax by transferring your `wealth' without consideration to your spouse or minor child. Such assets will also be considered as your wealth. HOW TO DETERMINE YOUR TAXABLE WEALTH Add the taxable value of the above assets (computed as per the detailed rules for valuation) owned by you as on March 31 (for FY 2014-15, it will be March 31, 2015). In case you sold your car during the year, it will not be taxable wealth. Deduct loans if any obtained by you to acquire any of the taxable assets from the value of gross tax out for at least 300 days in a...

Equity Savings Fund

Invest Equity Savings Fund Online   The best part about these funds is that they are subject to equity fund taxation and at the same time are structured like MIP like funds . This new category, equity savings funds , offer a little of everything. They allocate money to equities & equity related instruments, and fixed income. They aim to generate returns by diversification. Such funds invest in fixed income and arbitrage to protect the investors from short term volatility and equity for capital gains. The best part of these funds is that they are subject to equity fund taxation and at the same time are structured like MIP funds.   MIP funds however are subject to debt fund taxation. Investors Equity savings funds are suitable for the following: First time investors who seek partial exposure to equity with less volatility and greater stability Investors seeking moderate capital appreciation with relatively lower risk Those wh...

How to Pick Top Performing Mutual Fund Schemes

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   How to Pick Performing Schemes  Funds that continue to stay in the top grade of performance over longer periods are the ones to bet on, advise investment experts   The mutual fund performance charts of the past few months make for an impressive reading. Funds across all categories boast of stellar returns. Sample this: The mid and small cap category has averaged 77 percent return over the past 12 months, with the best fund delivering a staggering 120 percent. The tax-saving funds also average an impressive 51 percent, including a fund which has soared 92 percent. Many of the table-toppers are funds of proven quality and track record. However, there are also schemes that are not that well-known. Some of these have rarely made it to the performance charts in the past, yet, of late, they bo...

8% Government of India Bonds quick guide

For those seeking comfort in safety of returns, the Government of India issued 8% savings bond once again comes to the fore. First launched in 2003, these bonds are issued by the government with a maturity of 6 years. The bonds are available at all times with specified distributors through whom you can apply to invest in them. Here is a quick guide to what the bond offers and its features to ascertain to check for suitability. What are Government of India bonds Government of India bonds are like any other government bonds with specified rate of interest. The rate is fixed at 8% per annum paid half yearly, or you can opt for cumulative payment of interest at the end of the tenure. You can buy these bonds from State Bank of India and its associates, other nationalized banks and some private sector banks such as HDFC Bank Ltd and ICICI Bank Ltd, among others. The bonds can be bought from the offices of Stock Holding Corporation of India as well. They are available in physical form onl...
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