PANCARD

What Is PAN?

Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department, to any “person” who applies for it or to whom the department allots the number without an application.PAN enables the department to link all transactions of the “person” with the department. These transactions include taxpayments, TDS/TCS credits, returns of income/wealth/gift/FBT, specified transactions, correspondence, and so on. PAN, thus,acts as an identifier for the “person” with the tax department.PAN was introduced to facilitates linking of various documents, including payment of taxes, assessment, tax demand, tax arrearsetc. relating to an assessee, to facilitate easy retrieval of information and to facilitate matching of information relating to investment, raising of loans and other business activities of taxpayers collected through various sources, both internal as well asexternal, for detecting and combating tax evasion and widening of tax base.

A typical PAN is AFZPK7190K.First three characters i.e. “AFZ” in the above PAN are alphabetic series running from AAA to ZZZFourth character of PAN i.e. “P” in the above PAN represents the status of the PAN holder. “P” stands for Individual, “F” stands for Firm, “C” stands for Company, “H” stands for HUF, “A” stands for AOP, “T” stands for TRUST etc.Fifth character i.e. “K” in the above PAN represents first character of the PAN holder’s last name/surname.Next four characters i.e. “7190” in the above PAN are sequential number running from 0001 to 9999.Last character i.e. “K” in the above PAN is an alphabetic check digit.

2. Why Is It Necessary To Have PAN?

It is mandatory to quote PAN on return of income, all correspondence with any income tax authority. From 1 January 2005 it willbe mandatory to quote PAN on challans for any payments due to Income Tax Department.It is also compulsory to quote PAN in all documents pertaining to the following financial transactions :-

(a) sale or purchase of any immovable property valued at five lakh rupees or more;

(b) sale or purchase of a motor vehicle or vehicle, [the sale or purchase of a motor vehicle or vehicle does not include two

wheeled vehicles, inclusive of any detachable side-car having an extra wheel, attached to the motor vehicle;]

(c) a time deposit, exceeding fifty thousand rupees, with a banking company ;

(d) a deposit, exceeding fifty thousand rupees, in any account with Post Office Savings Bank;

(e) a contract of a value exceeding one lakh rupees for sale or purchase of securities;

(f) opening a bank account;

(g) making an application for installation of a telephone connection (including a cellular telephone connection);

(h) payment to hotels and restaurants against their bills for an amount exceeding twenty-five thousand rupees at any one time ;

(i) payment in cash for purchase of bank drafts or pay orders or banker’s cheques for an amount aggregating fifty thousand

rupees or more during any one day;

(j) deposit in cash aggregating fifty thousand rupees or more with a bank during any one day;

(k) payment in cash in connection with travel to any foreign country of an amount exceeding twenty-five thousand rupees at any

one time.

3. How does Income Tax Department ensure that PAN is quoted on transactions

mentioned above?

It is statutory responsibility of a person receiving document relating to economic or financial transactions notified by the CBDT to ensure that PAN has been duly quoted in the document.

4. Is it compulsory to quote PAN on return of income?

Yes, it is compulsory to quote PAN on return of income. A penalty of Rs.10,000/- is leviable in case of any default.

5. How will these authorities verify PAN?

A facility for verifying PAN is available on the website of the Income Tax department. Kindly click here

https://incometaxindiaefiling.gov.in/portal/knowpan.do

6. Who must have a PAN?

i. All existing assesses or taxpayers or persons who are required to furnish a return of income, even on behalf of others, mustobtain PAN.

ii. Any person carrying on any business or profession whose total sales, turnover or gross receipts are or is likely to exceed five lakh rupees in any previous year;

iii. Any person, who intends to enter into financial transaction where quoting PAN is mandatory, must also obtain PAN.

iv. The Assessing Officer may allot PAN to any person either on his own or on a specific request from such person.

7. Can a person obtain or use more than one PAN?

Obtaining or possessing more than one PAN is against the law, for which penalty of Rs.10,000/- may be imposed{Kindly refer Section 139A (5) (c) read with Rule 114B for more details} {Section139A (6)}{Kindly refer Section 272B}

8. Where to apply for PAN?

You can apply online  via Taxraj.com.Click Here to apply online for new Pancard. We are managing online Tin Facilitation Centre of NSDL E Governance Limited .In order to improve PAN related services, We had authorized a lot of Tax Advisor to provide pancard service at there doorstep.

9. How to apply for a PAN? Can an application for PAN be made on plain paper?

PAN application should be made only on Form 49A. A PAN application (Form 49A) can be downloaded from Our Website click here to download Pancard Form 49A It can be photocopied (on A4 size 70 GSM paper).

11. Can an application for PAN be made through Internet?

Yes, application for fresh allotment of PAN can be made through Internet. Further, requests for changes or correction in PAN data or request for reprint of PAN card (for an existing PAN) may also be made through Internet via Taxraj.com. Online application can be made either through the portal of Taxraj.com (https://taxraj.com/reg/pan.html ) .The charges for applying for PAN online are the same i.e. Rs.200. there are no additional charges. Payment of application fee can be made through credit/debit card or net-banking.Once the application and payment is accepted, the applicant is required to send the Signed Form with supporting documents through courier/post to our registered Office Address.

12. Is there any TATKAL facility for allotment of PAN?

No.

15. What if I submit incomplete Form 49A?

IT PAN Service Centers or TIN Facilitation Centers shall not receive any incomplete and deficient PAN application. However, these

case may be.

16. What documents and information have to be submitted along with the application for Form 49A?

a. Individual applicants will have to affix two recent, coloured photograph (Stamp Size: 3.5 cms x 2.5 cms) on Form 49A;

b. Any one document listed in list of docs required must be supplied as proof of 'Identity' and 'Address' and proof of Date of Birth ; and

17. Which documents will serve as proof of 'Identity' in case of Individualapplicants, including minors and HUF applicants?

As per list Click here to know

18. What is proof of 'Address' for Individual applicants, including minors and HUF applicants?

As per list Click here to know

19. What documents will serve as proof of Identity and Address for other

applicants?

As per list Click here to know

 

21. Is two photograph compulsory for making an application for PAN?

A photograph is compulsory only in case of 'Individual' person applicants.

22. What is the procedure for applicants who cannot sign?

Officer, under official seal and stamp.

23. Is father's name compulsory for female (including

married/divorced/widow) applicants?

Only father's name is required to be filled in the PAN application (Form 49A). Female applicants, irrespective of marital status should write only father's name in the PAN application

24. Is it compulsory to mention telephone numbers on Form 49A?

Telephone number is not compulsory, but if provided it may help in faster communication.

25. Who can apply on behalf of non-resident, minor, lunatic, idiot, and courtof wards?

Section 160 of IT Act, 1961 provides that a non-resident, a minor, lunatic, idiot, and court of wards and such other persons maybe represented through a Representative Assessee. In such cases, application for PAN will be made by the RepresentativeAssessee.

26. I had applied to the department but I do not know my PAN?

Please  Click here to know your pan.

 

27. How can illiterate persons apply for Pan

Left Hand Thumb impression of the applicant should be affixed on Form 49A or 'Request For New PAN Card Or/

And Changes In PAN Data' at the place meant for signatures and got attested by a Magistrate or a Notary Public or a Gazetted Officer

28. Do you need to apply for a PAN when you move or transfer from one cityto another?

Permanent Account Number (PAN), as the name suggests, is a permanent number and does not change during lifetime of PANholder. Changing the address or city, though, may change the Assessing Officer. Such changes must, therefore, be intimated tonearest IT PAN Service Center or TIN Facilitation Center for required correction in PAN databases of the Income Tax department.

These requests will have to be made in a form for 'Request For New PAN Card Or/ And Changes In PAN Data'

29. I had applied to UTITSL/ NSDL a month ago but I have not received myPAN card and I have to file my return of income.

email your details to acsystcn@gmail.com.

30. Will the existing PAN cards issued by the Department remain valid?

All PAN allotted and PAN card issued by the Department will remain valid. All persons who have been allotted a PAN need notapply again.

31. Income Tax Department has issued me a PAN card; can I obtain a new tamper proof PAN card?

Yes apply here online.

32. I had applied for PAN and received PAN number but have not received the PAN Card?

Apply here online quoting the PAN allotted to you.

33. How will the new PAN card be delivered to me?

The NSDL,  will ensure delivery of new PAN card at the address indicated by you in the PANFor obtaining the tamper proof PAN card an application will have to be made in the form for 'Request For New PAN Card Or/ AndChanges In PAN Data' to IT PAN Service Center or TIN Facilitation Center, in which existing PAN will have to be indicated andApply in the form for 'Request For New PAN Card Or/ And Changes In PAN Data' at here.

34. I want to pay taxes today but I do not have a PAN?

It takes about 15 days to get a new PAN allotted.

PAN, or permanent account number, is a unique 10-digit alphanumeric identity allotted to each taxpayer by the Income Tax Department under the supervision of the Central Board of Direct Taxes. It also serves as an identity proof. PAN is mandatory for financial transactions such as receiving taxable salary or professional fees, sale or purchase of assets above specified limits, buy mutual funds and more.

The primary objective of PAN is to use a universal identification key to track financial transactions that might have a taxable component to prevent tax evasion. The PAN number remains unaffected by change of address throughout India.

WHO MUST APPLY FOR PAN?

·         Anybody who earns a taxable income in India, including foreign nationals who pay taxes here

·         Anybody who runs a business (be it retail, services or consultancy) that had total sales, turnover or gross receipt exceeding Rs 5 lakh in the previous financial year


HOW TO APPLY?
 

·         Use 'Form 49A' or 'Form 49AA' as applicable to you. Find more details at incometaxindia.gov.in.

·         You can find the location of PAN card offices in any city from the websites of the Income Tax Department or National Securities Depository Limited (NSDL).

·         You will need copies of proof of Identity and address.

·         Payment can be made using cash, cheque or demand draft.

·         You can also apply online through websites of the I-T Department or NSDL.

·         If you are applying online, the processing fee can be paid via net banking, credit card or debit card.

·         Track the status of your application online.


WHY GET A PAN NUMBER?
 

·         For payment of direct taxes

·         To file income tax returns

·         To avoid deduction of tax at higher rate than due

·         To enter into specific transaction such as:

(a) Sale or purchase of immovable property valued at Rs 5 lakh or more
(b) Sale or purchase of a vehicle other than a two wheeler
(c) Payment to hotels or restaurants an amount exceeding Rs 25,000 at any one time
(d) Payment in cash an amount exceeding Rs 25,000 in connection with travel to any foreign country
(e) Payment of an amount of Rs 50,000 or more to the Reserve Bank of India for acquiring bonds
(f) Payment of an amount of Rs 50,000 or more to a company or an institution for acquiring bonds or debentures
(g) Payment of an amount of Rs 50,000 or more to a company for acquiring shares
(h) Any mutual fund purchase
(j) Deposit exceeding Rs 50,000 with any single banking institution in 24 hours.
(k) Payment exceeding Rs 5 lakh for purchase of bullion and jewellery

The permanent account number or PAN has grown in importance and is today a vital part of any financial transaction. The tax department allots the PAN to an individual for the purpose of identification and to relate to various transactions and information pertaining to him.

If your income exceeds the basic exemption limit, you should apply for PAN by May 31 of the relevant assessment year. Any person whose turnover or gross receipts exceed Rs 500,000 and specified charitable trusts should apply for PAN before the end of the said accounting year.

Apart from the above, importers, exporters and those applying for registration under the Central Excise Rules, 1944, Service Tax Rules, 1994, Central Sales Tax Act or the State Sales Tax law also have to apply for the PAN.

Using PAN. All returns, quarterly statements, challans or correspondence with the income tax authorities should include the PAN. It is necessary to quote the PAN in documents related to the following transactions:

  • Sale or purchase of immovable property valued at Rs 500,000 or more. If there are co-owners (buyer or seller), the PAN of both the owners will have to be mentioned. If a nominee holds the property, the PAN of the legal owner must be mentioned. 
    The PAN should be disclosed in the document pertaining to purchase or sale of the property.
  • Sale or purchase of a motor vehicle requiring registration other than two-wheelers. This does not include vehicles running on fixed rails or special vehicles for use only in factories or in other enclosed premises or vehicles of less than four wheels with engine capacity of not more than 25 cc.
  • A time deposit of more than Rs 50,000 with any banking company and deposit of more than Rs 50,000 with post-office savings bank. This requirement is not mandatory when investing in post-office National Savings Certificate or Kisan Vikas Patra, and the PAN will be required only if the time deposit exceeds Rs 50,000.
  • Contract of sale or purchase of securities exceeding Rs 1 lakh in value, including shares, bonds, debentures, derivatives, units and government securities.
  • Cash payment of Rs 50,000 or more for purchase of bank drafts, pay orders or bankersÕ cheques during any one day.
  • Cash payment exceeding Rs 25,000 in connection with travel to any foreign country (fare or purchase of foreign currency).
  • Application for installation of telephone, including cellular telephone.
  • Payment to hotels and restaurants against bills exceeding Rs 25,000 at any one time.
  • Opening a bank account.
  • Application for issue of a credit card.
  • A cash deposit of Rs 50,000 or more with any bank during any one day.
  • Payment of Rs 50,000 or more to a mutual fund for purchase of units or to a company for acquiring its shares or to a company/institution for acquiring its debentures/bonds or to RBI for acquiring bonds.
  • Minor intending to open time deposit or bank account should quote the PAN of either father or mother or guardian in whose hands income is likely to be clubbed.

The exceptions. While the PAN is asked for in almost all financial transactions, it is possible to conduct some transactions without it if you provide Form 60 or Form 61 (for agriculturists).

A declaration in Form 60 will have to be issued to the registering authority for purchase and sale of immovable property or motor vehicles, or to the bank, broker, telephone provider, hotel or travel agent wherever necessary.

Non-resident Indians and agriculturists (who can furnish Form 61) are exempt from quoting the PAN. The central or state government or consular offices need not mention the PAN if they are the payer, but the provision will apply if they are the recipient.

Forms 60 and 61 must be verified by the recipient and sent to the Commissioner of Income Tax (Central Information Branch) by 31 October (forms received up to 30 September) or 30 April (forms received up to 31 March).

Any person (other than non-residents) who receives any sum or income or amount from which tax has been deducted must provide the PAN to the person/organisation that has deducted tax at source as per Section 139(5A).

Similarly, every buyer of specified goods like alcoholic liquor, tendu leaves, timber, forest produce and scrap for trading and every licensee or lessee of parking lots, toll plazas, mines or quarries, has to provide the PAN to the seller/licensor. Any person who has deducted tax at source must quote the PAN of the payee in all the TDS certificates, TDS returns and statements of perquisites and profits in lieu of salary (Section 139(5B)).

It is obligatory to mention the PAN on all these forms and it is advisable that the payer intimate the payee in case of non-receipt of the PAN.

The requirement of quoting the PAN under Section 139(5A) will not apply to a person whose income is not taxable or who is not required to obtain the PAN under any provision of the act.

Such a person has to furnish a declaration under Section 197A in Form 15G/15H that tax on his income will be nil. But any person, other than senior citizens, whose aggregate income from dividend, interest, withdrawal of deposits with NSS and income in respect of units exceeds the basic exemption limit cannot furnish Form 15G for non-deduction. Anyone who violates the above provision or quotes a false PAN will be fined Rs 10,000 for each default or failure.

Who has to apply for PAN ?

The following persons should apply for allotment of PAN in Form 49A-

Every person whose assessable income exceeds the maximum amount which is not chargeable to tax or any person carrying out business or profession whose total sales / turnover is likely to exceed Rs 5,00,000 in a year.
A person who is required to furnish return under sub-section (4A) of section 139.
An employer who is required to furnish return of fringe benefits tax.
The Central Government has power to specify by notification any class or classes of persons by whom tax is payable under the Income-tax Act or any tax or duty is payable under any other law for the time being in force.
Important points to remember while filling 'PAN' form (Form No. 49A)

Please Click Here to download PAN and Tan forms in Excel format and Check the status of your PAN and TAN

The PAN form should be filled in by the assessee with due care and caution. There should be no corrections or overwriting and it should be properly signed and verified by the persons who is authorized to do so, under the provisions of IT Act. The following important points may be taken care of while filling up the form :

Status : Correct code number of the assessee's status / residential status may be filled in.
Date of birth : Date of birth is very important and should be filled correctly.
Father's Name : Father's name has to be given even in case of married ladies.
Sources of Income : A person should have at least one source of income to apply for PAN. So the relevant box should be checked in the form.
In case of companies following additional details have to be filled in the form
The ROC registration number of the company.
The date of incorporation of the company.
The date of commencement of business by the company.
In which business activity the company is engaged in.
VERIFICATION : The verification must be signed by the authorized person, and other particulars viz. Name, Assessment Year, Capacity, Place and Date should be correctly filled therein. Please note that any person making a false statement is liable-to be prosecuted under Section 277 of the Income-Tax Act.

Who can verify and sign the 'PAN' form ?

Individual : The individual filling his PAN form has to sign it. In case the individual is mentally incapable, then the PAN form may be signed by his Guardian or by any other person competent to sign on his behalf.

Incase the individual is absent from India or because of any other reason, he is not able to sign and verify his PAN form, then any person duly empowered by him through valid Power of Attorney may sign on his behalf. In such case, a certified copy of Power of Attorney must accompany the PAN form.

Hindu Undivided Family : By the Karta or where he is absent from India or he is mentally incapacitated from attending to his affairs, by any other adult member of such family.

Company – Resident : The Managing Director or, where there is no Managing Director or he is not able to sign and verify the PAN form due to any unavoidable reason, by any director thereof.

Company – Non-Resident : The PAN form may be signed and verified by a person holding a valid Power of Attorney from the Non-Resident, which should be attached to the PAN form.

Firm : Managing Partner, or, where there is no Managing Partner or due to some unavoidable reasons, he is not able to sign and verify the PAN form, by any partner thereof, not being a minor.

Local Authority : By the Principal Officer

Association of Persons : By any member of the Association or the Principal Officer thereof.

Frequently Asked Questions

What are the benefits of obtaining a Permanent Account Number (PAN) and PAN Card?

A PAN number has been made compulsory for every transaction with the Income Tax department. It is also mandatory for numerous other financial transactions such as opening of bank accounts, availing institutional financial credits, purchase of high-end consumer item, foreign travel, transaction of immovable properties, dealing in securities etc. A PAN card is a valuable means of photo identification accepted by all government and non-government institutions in the country.

I have lost my PAN card but remember my number. Do I necessarily need to get a fresh card?

With your PAN you can continue to transact with the Income Tax department. However, in respect of other agencies you may encounter constraints without a PAN card since it doubles as a photo identity card.So, you should apply for duplicate pancard with same pan no. at here.

I have been allotted two PANs. Which number should I use?

You may retain any one of the numbers and surrender the other through a letter addressed to your jurisdictional Assessing Officer.

If I do not surrender the additional PAN number, is there any problem?

Yes. It is illegal to have two PANs and the penalty for such offence is Rs.10,000/-.

By mistake I have been using different PANs for different purpose like one for my demat account and another for filing my Income Tax return and payment of taxes. How do I set this right?

It is advisable to retain only one PAN, preferably the one used for Income Tax purpose and surrender the other number immediately. The institutions where the latter number has been quoted should be informed of the correct PAN.

Is it mandatory to file return of income after getting PAN?

No. Return is to be filed only if you have taxable income.