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.
What is the purpose of having a Permanent Account Number (PAN)?
It is mandatory to quote PAN on return of income, all correspondence with any income tax authority and challans for any payments due to 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.
Some such transactions are sale and purchase of immovable property or motor vehicle or payments to hotels for bills or payments in cash, of amounts exceeding Rs. 25,000/-, in connection with travel to any foreign country.
Likewise, PAN has to be mentioned for making a time deposit exceeding Rs. 50,000/- with a Bank or Post Office or depositing cash of Rs. 50,000/- or more in a Bank.
Who must have a PAN?
All existing assesses or 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. The Assessing Officer may allot PAN to any person either on his own or on a specific request from such person.Who are those persons who are not required to obtain or quote Permanent Account Number?
The following categories of persons are not required to obtain or quote PAN:
Persons having only agricultural income and do not have any taxable income. Such persons will file a declaration (Form 61) in respect of transactions where quoting of PAN is mandatory; Non-residents Central Government, State Governments and Consular Offices in transactions in which they are the payers.What documents and information must accompany the application for Form 49A?
Individual applicants will have to attach a recent, colour, photograph (Stamp Size: 3.5 cms x 2.5 cms); any document listed in Rule 114 must be supplied as proof of identity and address; and the designation and code of the applicable Assessing Officer of the Income Tax department must be noted on the Form 49A.
Which documents can serve as proof of identity in the case of individual applicants, including minors and HUF applicants?
Any one of the following items: a copy of a school leaving certificate; matriculation certificate; degree of a recognized educational institution; depository account; credit card; bank account; water bill; ration card; property tax assessment order; passport; voter identity card; drivers license; a certificate of identity signed by an MP, an MLA, a Municipal Councilor or a Gazetted Officer;
In case the PAN applicant is a minor, any of above documents of any of the parents or guardian of such minor shall serve as proof of identity;
In case the PAN application is made on behalf of a HUF, any of above documents in respect of Karta of the HUF will serve as proof of identity.
Which documents can serve as proof of identity and address for other applicants?
Any one of the following items:
Copy of Certificate of Registration issued by the Registrar of Companies Copy of Certificate of Registration issued by the Registrar of Firms Copy of Partnership Deed Copy of Trust deed Copy of Certificate of Registration Number issued by the Charity Commissioner of the Registrar of Co-operative Society. Any other competent authority or any other document originating from any Central or State Government Department establishing identity and address of such person.Is a photograph compulsory for making an application for PAN?
A photograph is compulsory only in the case of individual applicants.
Is listing my father’s name compulsory for all female applicants (including married/divorced/widow)?
Yes, all female applicants, irrespective of marital status, must indicate their father’s name on the PAN application.
Who can apply on behalf of a non-resident, a minor, or an individual deemed mentally debilitated?
Section 160 of IT Act, 1961 provides that a non-resident, a minor, or an individual deemed mentally debilitated may be represented by a Representative Assessor. In such cases, an application for a PAN will be made by the Representative Assessor.
Can a person obtain or use more than one PAN?
No, obtaining or possessing more than one PAN is against the law.
