PAN Card - Permanent

PAN Card - Permanent Account Number

What is Pan Card?

PAN (Permanent Account Number) is a unique 10-digit alphanumeric number allotted to each taxpayer and issued in the form of a laminated card by Income Tax Department under the supervision of the Central Board of Direct Taxes. Pan card also serves as an important identity proof like driving licence and Aadhaar card and accepted at all the places. PAN is mandatory to carry out financial transactions such as opening a demat account, receiving taxable salary or professional fees and sale or purchase of assets above specified limits. The PAN number once allotted to an individual remains unaffected by change of address within or across states in India.

Why is PAN number important?

PAN is a number that no taxpayer can do without. It is compulsory in order to file your Income Tax returns and to receive a tax refund. PAN card also serves an accepted proof of identity and has now been made mandatory for a number of transactions of both a business as well as a personal nature. A list of the various activities that require a PAN number to complete the activity are mentioned below:

Mandatory uses of PAN

1. PAN number needs to be mentioned while paying direct taxes.
2. For the registration of a business, you have to furnish PAN number.
3. Taxpayers need to quote their PAN while paying income tax.
4. Many financial transactions require PAN number. Some of these transactions are:
a) Sale or purchase of property which is valued at Rs.5 lakh or more.
b) Sale or purchase of a vehicle except a two-wheeler.
c) Payments above Rs.25000 are made towards hotels and restaurants.
d) Payments above Rs.25000 made in connection with travel requirements to other countries.
e) Deposits of more than Rs.50000 in a bank.
f) Acquiring bonds by paying an amount equal to or greater than Rs.50,000.
g) Payments made for more than Rs.5 lakhs for purchase of jewellery.
h) Purchase of mutual fund.
i) Purchase of shares above Rs.50000.
j)Payment above Rs.50000 for acquiring an insurance policy.
k) To remit money out of India.
l) Pan information is required for transfer of funds from NRE to NRO account.

General uses of PAN card

1. PAN card can be used throughout the country as a valid identity proof.
2. You can keep a track of your tax payment through Pan number.
3. As, PAN is unique number for everyone, hence, misuse of the same is almost impossible for purposes of tax evasion etc.
4. PAN card can be used as a document to avail connections like electricity, telephone, LPG and internet.
5. PAN is used to track all financial information like payment of taxes, investments made and debt liability of an entity, to a single customer.

Who has to obtain PAN card in India?

1. Every person if his total income or the total income of any other person in respect of which he is assessable during the year exceeds the maximum amount which is not chargeable to tax.
2. A charitable trust who is required to furnish return under Section 139(4A).
3. Every person who is carrying on any business or profession whose total sale, turnover, or 
gross receipts are or is likely to exceed five lakh rupees in any year.
4. Every importer/exporter who is required to obtain Import Export code.
5. Every person who is entitled to receive any sum/income after deduction of tax at source.
6. Any person who is liable to pay excise duty or a producer or manufacturer of excisable goods or a registered person of a private warehouse in which excisable goods are stored and an authorized agent of such person XXXX D [As amended by Finance Act, 2016].
7. Persons who issue invoices under Rule 57AE requiring registration under Central Excise Rules, 1944.
8. A person who is liable to pay the service tax and his agent.
9. Persons registered under the Central Sales Tax Act or the general sales tax law of the relevant state or union territory.
10. Every person who intends to enter into specified financial transactions in which quoting of PAN is mandatory.

How to apply for PAN card?

For obtaining the PAN, you have to submit the PAN application form along with the required documents and fees at the PAN application center of UTIITSL or NSDL. A resident person shall apply for PAN in form 49A and a non-resident person including a foreign company shall apply for allotment of PAN in form 49AA. You have have to affix two recent coloured photograph (Stamp size 3.5 cms x 2.5. cms) and need to  furnish copies of proof of Identity, address and Date of Birth. Designation and Code of concerned Assessing Office of Income Tax Department will have to be mentioned in PAN application form. An online application can also be made from the website of UTIITSL or NSDL. You can also track the status of your application online.

The address, phone numbers, etc., of PAN application centers of UTIITSL or NSDL at which PAN application can be submitted can be obtained from :
Website of Income Tax Department : www.incometaxindia.gov.in

Website of UTIITSL : www.utiitsl.com

Website of NSDL : www.tin-nsdl.com