Know Your PAN – Permanent Account Number – incometaxindiaefiling.gov.in
This article is all about to Know Your PAN i.e. Permanent Account Number. Starting from the what is PAN, how it is important document for income tax purpose etc… To file Income Tax Return on incometaxindiaefiling.gov.in you should obtain the PAN. You may find all the necessary details given below.
Know Your PAN
PAN is known as Permanent Account Number, which is the identity proof of the “Person” with the tax department in tax related matters. PAN is a ten – digit number (including alphabetic & numeric both) issued by the income tax department under the supervision of the CBDT (Central Board for Direct Tax) to the person who applies for PAN. It is in the form of a laminated card Income tax website incometaxindiaefiling.gov.in. The number on the PAN card is included both alphabetic & numeric numbering which gives the complete information about the PAN card holder. For e.g., ARNPS8302D Here,
üThe First three characters “ARN” are showing the alphabetic running series from AAA to ZZZ.
üThe fourth character “P” is showing the status of the PAN holder. I.e.,
–For the individual, the alphabetic number “P” is used.
–For the firm, “F” is used.
–For the company, “C” is used.
–For the HUF, “H” is used.
–For the AOP, “A” is used.
–For the trust, “T” is used.
üThe fifth character “S” shows the first digit of the PAN holders’ last name or surname.
üThen after the four numeric numbers “8302”are the sequential number running from 0001 to 9999.
üThe last character “D” is a check digit number of the PAN holder about hisher tax transactions.
Common Mistakes in E-filling of Income Tax Return (ITR)
ØLegal framework of the PAN :-
Rule 114 of section 139A of income tax act, 1961 creates the legal framework for a person in which manner he/she can apply for PAN. If a person fails to comply the provisions of section 139A of income tax act, a penalty of Rs. 10000/- is to be paid to the assessing officer.
ØWhy is it necessary to have a PAN? :-
Income tax authorities have to make compulsory to quote PAN on the return of income in case of correspondence with the tax authority from 1st January, 2005. It is also made compulsory by the tax authority to show the PAN in the following manner:
a)A sale or purchase of any immovable property worth Rs. Five lakh or more,
b)A sale or purchase of any motor vehicle, but it does not include two wheeled vehicles,
c)Cash payment for the purchase of bank drafts or pay orders whose aggregate amount are more than fifty thousand rupees during any one day,
d)Bills payment of hotels and restaurants for any amounts exceeding twenty five thousand at any one time,
e)Open a bank account,
f)For sale or purchase of securities and its value of it exceeds one lakh rupees,
g)A deposit in any banking company or with post office, saving bank exceeding fifty thousand rupees.
When a taxpayer makes a payment of taxes or has monetary transaction at any place of India, a unique all India taxpayer identification number is essential for linking and processing transaction on computers and also for date matching. Therefore a new series of PAN was devised.
The PAN card number is useful in the above mentioned transactions, but there is certain transaction in which the requirement of filling the PAN card numbers is not necessary if the form no. 60 or form no. 61 is filled with it. Non-resident-Indians can fill the form no 60 instead of or due to non having PAN number and it is not mandatory to have PAN number. But having a PAN card number is beneficial for them.