Know Your PAN – Permanent Account Number – incometaxindiaefiling.gov.in


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.

PAN*

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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,
 
  ü  The First three characters “ARN” are showing the alphabetic running series from AAA to ZZZ.
  ü  The 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.
 
  ü  The fifth character “S” shows the first digit of the PAN holders’ last name or surname.
  ü  Then after the four numeric numbers “8302”are the sequential number running from 0001 to 9999.
  ü  The last character “D” is a check digit number of the PAN holder about hisher tax transactions.
Income Tax E-filing Return
Process of Filing Rectification Return
Common Errors in Filing Rectification Return
Common Mistakes in E-filling of Income Tax Return (ITR)

 

  Ø  Legal 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.
  Ø  Why 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.
How to apply for PAN…

 

There are two modes for applying PAN card-

 
 
2 – Offline mode
 
Now-a-days, it is mandatory for every individual Indian citizen to have a PAN card for making any tax related transaction. So, here a procedure is given for applying PAN card:
 
 v  For online application, the applicant has to go to the website www.incometaxindia.gov.in or www.utiisl.co.in or www.tin.nsdl.com.
 
 v  Then after filled the form no. 49A if the person is Indian citizen or filled the form no. 49AA if the person is from another country.
 
 v  In the above two forms the applicants should have to fill the correct information about his full name, permanent address, city, category, status etc.
 
 v  After filling all the correct details, the person has to pay fees of Rs. 96 by choosing any of the following mode  –
          Demand draft
          Cheques
          Credit card/ debit card
          Net banking
 
 v  If the fees are paid by the credit card/debit card, the extra charge of rs. 5 have to pay by the person.
 
 v  If the person is an individual, then before submit his application, he/she has to upload his color photograph of size 3.5 cm * 2.5 cm and upload his/her signature in the blank paper.
 
 v  After verifying the application form, click on the submit button to submit application for PAN.
 Ø  Requirement of documents to apply for PAN card with application form :- AMENDMENT IN DOCUMENTS
 
          –          Processing fees of rs. 105
 
          –         Identity proof : e.g.,
a)      Voters identity card
b)      Driving license
c)       Passport
d)      Matriculation certificate
e)      School leaving certificate
f)       Degree of recognized education institution
g)      Bank account statement
h)      Depository account statement
i)        Water bills
j)        Property tax assessment order, etc.
 
          –          Address proof : e.g.,
a)      Voter identity card
b)      Driving license
c)       Passport
d)      Bank account statement
e)      Credit card/debit card
f)       Ration card
g)      Telephone bill
h)      Employer certificate
i)        Electricity bill
j)        Property tax assessment of order
 
             When the above mentioned points are completed, the application is accepted of the applicant. He/she obtains a laminated PAN card within 60 days.
 
Ø  Application for duplicate PAN :
                If the original PAN card of the person is lost or damaged, he/she can apply for the duplicate PAN card and also make changes in it. The procedure for applying the duplicate PAN card is as follows:
Fill          : – first step is to fill the application form (composite service form)
Pay         : – make payment of fees online
Sign        : – download the prefilled application form
Affix       : – affixing the photo & signature in the prefilled application form
Attach    : – attach all the supporting documents which are given as under
Send      : – sending the signed application along with supporting documents by post or courier to the address given in the welcome mail.
          List of supporting documents to be submitted with the application form –
a)      Proof of PAN (copy of damaged or lost card)
b)      Proof of identity
c)       Proof of address

 

d)      Proof in support of changes required (if any)

 

PAN card is a permanent account number which is issued by the income tax authority for various purposes. The different uses of PAN card are as follows:-
 
      ·         The main use of PAN number is to prevent the tax evasion. For that purpose section 139A of income tax act, 1961 is lays down.
 
      ·         It can be used as an identity proof of the person.
 
      ·         While opening a bank account or carrying out any financial transactions, a PAN card is required as an identity proof.
 
      ·         PAN number is the same as nine digit social security number (SSN) which is issued in the United States of America to their people.
 
      ·         The PAN card number is used in every financial transaction of money transfer.
 
      ·         It is also useful for the income tax department to keep all the records of the person in tax related matters and prevent the tax evasion.
 
      ·         A PAN card is mandatorily used in the following transactions –
 
          Applying for a credit card
          Paying bills exceeding rs. 25000 or more in hotels
          For filling income tax return
          Opening a bank account
          Taking a loan from a bank
          Purchase of vehicles
          Getting a job, etc.

Ø  Other important points about PAN card :

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.      


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