What is Permanent Account Number
PAN stands for Permanent Account Number. PAN is a ten-digit unique alphanumeric number issued by the Income Tax Department. PAN is issued in the form of a laminated plastic card (commonly known as PAN card). Given below is an illustrative PAN is ALWPG5809L
Why is PAN needed?
As per new regulatory norms, both resident & non-residents Indians; including international companies with or without any presence in India, are required to provide a copy of their PAN card while carrying financial or business transactions; like: opening bank accounts, filing taxes,, buying or selling real estate, etc to name a few.
What are the benefits of obtaining a PAN and PAN Card?
A PAN 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, in bank account, deposit of cash in bank account, opening of Demat account, 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
Can NRIs apply for PAN without coming to India or without having Indian Address?
Yes, NRIs can apply for PA without having to come to India or without having an address in India.
Who has to obtain PAN?
PAN is to be obtained by following persons:
• Every person if his total income or the total income of any other person in respect of which he is assessable during the previous year exceeds the maximum amount which is not chargeable to tax.
• 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 previous year • Every person who intends to enter into specified financial transactions in which quoting of PAN
What are the specified financial transactions in which quoting of PAN is mandatory for an NRI?
: Quoting of PAN is mandatory for an NRI in the following cases:
1. Sale or purchase of a motor vehicle or vehicle other than two wheeled vehicles.
2. Opening an account [other than a time-deposit referred at point No. 7 and a Basic Savings Bank Deposit Account] with a banking company or a co-operative bank
3. Opening of a demat account with a depository, participant, custodian of securities or any other person with SEBI
4. Payment of an amount exceeding Rs. 50,000 to a Mutual Fund for purchase of its units
5. Payment of an amount exceeding Rs. 50,000 to a company or an institution for acquiring debentures or bonds issued by it.
6. Deposits of cash exceeding Rs. 50,000 during any one day with a banking company or a co-operative bank.
7. A time deposit of amount exceeding Rs. 50,000 or aggregating to more than Rs. 5 lakh during a financial year with - a) a banking company or a co-operative bank b) a Post Office; c) a Nidhi referred to in section 406 of the Companies Act, 2013 or d) a non-banking financial company which holds a certificate of registration under section 45-IA of the Reserve Bank of India Act, 1934 to hold or accept deposit from public.
8. Payment of an amount aggregating to more than Rs. 50,000 in a financial year as life insurance premium to an insurer
9. A contract for sale or purchase of securities (other than shares) for amount exceeding Rs. 1 lakh per transaction
10. Sale or purchase, by any person, of shares of a company not listed in a recognised stock exchange for amount exceeding Rs. 1 lakh per transaction.
11. Sale or purchase of any immovable property for an amount exceeding Rs. 10 lakh or valued by stamp valuation authority referred to in section 50C of the Act at an amount exceeding ten lakh rupees.
Can I file my return of income without quoting PAN?
It is mandatory to quote PAN on the return of income. Apart from return of income, PAN is also to be quoted in all challans for making payment of tax, correspondence with the Income Tax Department, etc.
However, w.e.f., 01-09-2019, every person who has been allotted a PAN, and who has linked his Aadhaar number with PAN as per section 139AA, may furnish his Aadhaar number in lieu of a PAN for all the transactions where quoting of PAN is mandatory as per Income-tax Act. Thus, with effect from September 1, 2019, an assessee can file his return of income by quoting his Aadhaar number instead of quoting PAN.
How to apply for PAN?
PAN application can be filled up in the following forms -
i. Form 49A (for Indian Citizens)
ii. Form 49AA (for Foreign Citizens)
PAN application can be made either online through NSDL website www.tin-nsdl.com or UTIITSL website or through any of the NSDL TIN-Facilitation Centres/ PAN Centres.
While submitting PAN application form, applicant will have to indicate whether physical PAN card or E-PAN card is required.
If applicant opts for physical PAN Card, then physical PAN card will be printed & dispatched at communication address.
If the physical PAN Card is not required. In such cases, email ID will be mandatory & e-PAN Card in PDF format will be sent to the PAN applicant at the email ID mentioned in PAN application form. Physical PAN Card will not be dispatched in such cases.
Note: w.e.f. 01-07-2017, every person who is eligible to obtain Aadhaar number shall quote either Aadhaar number or enrolment ID of Aadhaar application form in the PAN application form.
How to link Aadhaar number with PAN using e-Filing portal?
Taxpayer is required to login on e-Filing portal using his registered username and password. After login, he will get the “link Aadhaar” option under his ‘Profile Settings’. Aadhaar number will be linked with PAN if name and date of birth of taxpayer is identical to Aadhaar and PAN.
How to link Aadhaar number with PAN using SMS facility?
Taxpayer who wants to link their Aadhaar number with PAN is required to send SMS to 567678 or 56161 in following format:
<12-digit Aadhaar> <10 digit PAN> Example of SMS to 567678 or 56161: UIDPAN 111122223333 AAAPA9999Q Aadhaar number will be linked with PAN if name and date of birth of taxpayer is identical to Aadhaar and PAN.
Is there any TATKAL facility for allotment of PAN?
Can an application for PAN be made on plain paper?
Application for PAN cannot be made on plain paper. The application for PAN is to be made in the prescribed form i.e. Form No. 49A/Form No. 49AA as the case may be. Form No. 49A is to be used by Indian Citizen/Indian Companies/Entities incorporated in India/Unincorporated entities formed in India and Form No. 49AA is to be used by individual not being a citizen of India/Entities incorporated outside India/Unincorporated entities formed outside India)
What if I submit incomplete PAN application i.e. Form 49A/49AA?
IT PAN Service Centers or TIN Facilitation Centers shall not accept any incomplete and deficient PAN application. However, these centers will assist applicants to correctly fill up form 49A/49AA (as the case may be).
Is it necessary to fill the PAN application form i.e. Form 49A/49AA in block letters?
Yes, Form 49A/49AA (as the case may by) should be filled legibly in BLOCK LETTERS and preferably in black ink. It should also be noted that, each box, wherever provided, should contain only one character (alphabet /number / punctuation sign) leaving a blank box after each word.
What documents and information have to be submitted along with the PAN application in Form 49A/49AA?
The documents required to be submitted with the PAN application are specified in Rule 114 of the Income-tax Rules. The details of the documents required are also provided in the application form. Individual applicants have to provide document pertaining to proof of identity, proof of address and proof of date of birth. The name of the applicant as mentioned in application form and the name appearing in the documents submitted along with the application should match exactly.
Individual applicants should affix two recent colour photographs with white background (size 3.5 cm x 2.5 cm) in the space provided on the form. The photographs should not be stapled or clipped to the form. The clarity of image on PAN card will depend on the quality and clarity of photograph affixed on the form.
What documents will serve as proof of identity in case of individual applicants?
Any of the following document will serve as proof of identity in case of individual applicants being Indian citizens (including those located outside India) :
Copy of following :
• Aadhaar Card issued by the Unique Identification Authority of India; or
• Elector's photo identity card; or
• Driving License; or
• Passport; or
• Photo identity card issued by the Central Government or State Government or Public Sector Undertaking; or
• Pensioner card having photograph of the applicant; or
• Central Government Health Service Scheme Card or
. Ex-Servicemen Contributory Health Scheme photo card
What documents will serve as proof of address in case of individual applicants?
Copy of any of the following document will serve as proof of address in case of individual applicants being Indian citizens (including those located outside India) :
• Copy of following :
o Aadhaar Card issued by the Unique Identification Authority of India; or
o Elector's photo identity card; or
o Driving License; or
o Passport; or
o Passport of the spouse; or
o Post office passbook having address of the applicant; or
o Latest property tax assessment order; or
o Domicile certificate issued by the Government; or
o Allotment letter of accommodation issued by Central or State Government of not more than three years old; or
o Property Registration Document; or
• Copy of following documents of not more than three months old
o Electricity Bill; or
o Landline Telephone or Broadband connection bill; or
o Water Bill; or
o Consumer gas connection card or book or piped gas bill; or
o Bank account statement or as per Note given below ; or
o Depository account statement; or
o Credit card statement; or
Note : In case of an Indian citizen residing outside India, copy of Bank Account Statement in country of residence or copy of Non-resident External (NRE) bank account statements (not more than three months old) shall be the proof of address.
• Certificate of identity in Original signed by a Member of Parliament or Member of Legislative Assembly or Municipal Councillor or a Gazetted officer, as the case may be.
• Employer certificate in original.
What documents will serve as proof of date of birth in case of individual applicants?
Copy of any of the following document will serve as proof of date of birth in case of individual applicants being Indian citizens (including those located outside India) :
• Birth Certificate issued by the Municipal Authority or any office authorized to issue Birth and Death Certificate by the Registrar of Birth and Death or the Indian Consulate as defined in clause (d) of sub-section (1) of section 2 of the Citizenship Act, 1955 (57 of 1955); or
• Pension payment order; or
• Marriage certificate issued by Registrar of Marriages; or
• Matriculation Certificate; or
• Passport; or
• Driving License; or
• Domicile Certificate issued by the Government; or
• Affidavit sworn before a magistrate stating the date of birth
Should married female provide father’s name?
While providing the full name, applicant should provide father’s name and hence, married female should provide father’s name and not husband’s name.
Who can apply on behalf of non-resident, minor, lunatic, idiot, and court of wards?
Section 160 of Income-tax Act, 1961 provides that a non-resident, minor, lunatic, idiot, mentally retarded, deceased, wards of court and such other persons may be represented through a Representative Assessee.
In such cases,
• In the application for PAN, details of the non-resident, minor, lunatic, idiot, mentally retarded, deceased, wards of court, etc. should be provided.
• Details of representative assesseehave to be provided in item 14 of the application for PAN.
Proof of Identity and Proof of address is also required for representative assessee.
Is it mandatory to file return of income after getting PAN?
Return is to be filed only if you are liable to file return of income under section 139.It is not mandatory to file return of income after getting PAN.
Should I intimate my PAN to deductor i.e. person deducting tax?
Yes, you should intimate your PAN to the deductor i.e. person deducting tax. From 1st April, 2010, non-furnishing of PAN to deductors results in TDS at much higher rate of 20% or even more.
If my PAN card is lost, then what to do?
If the PAN card is lost or you wish to have a new PAN card with existing details, then you can apply for duplicate PAN card by submitting the Form for "Request for New PAN Card or/ and Changes or Correction in PAN Data" and a copy of FIR may be submitted along with the form.
If the PAN card is lost and you don't remember your PAN, then in such a case, you can know you PAN by using the facility of "Know Your PAN" provided by the Income Tax Department. This facility can be availed of from the website of Income Tax Department - www.incometaxindiaefiling.gov.in
You can know your PAN online by providing the core details like Name, Father's Name and Date of Birth.
After knowing the PAN, you can apply for duplicate PAN card by submitting the "Request For New PAN Card Or/ And Changes Or Correction in PAN Data".
Applicant is required to fill all the columns in the form but should not tick any of the boxes on the left margin.
What is the validity of PAN?
PAN obtained once is valid for life-time of the PAN-holder. It is not affected by change of address or change of Assessing Officer etc. However, any change in the PAN database (i.e. details provided at the time of obtaining PAN) should be intimated to the Income Tax Department by furnishing the details in the form for “Request For New PAN Card Or/ And Changes or Correction in PAN Data”.
What is the penalty for not complying with the provisions relating to PAN?
Section 272B provides for penalty in case of default by the taxpayer in complying with the provisions relating to PAN, i.e., not obtaining PAN, even though he is liable to obtain PAN or knowingly quoting incorrect PAN in any prescribed document in which PAN is to be quoted or intimating incorrect PAN to the person deducing tax or person collecting tax. Penalty of Rs. 10,000 undersection 272B can be levied for failure to comply with the provisions of section 139A and penalty of Rs. 10000 per default shall be levied for failure to Quote or to Quote invalid PAN
Can a person hold more than one PAN?
: A person cannot hold more than one PAN. If a PAN is allotted to a person, then he cannot apply for obtaining another PAN. A penalty of Rs. 10,000/- is liable to be imposed under Section 272B of the Income-tax Act, 1961 for having more than one PAN.
If a person has been allotted more than one PAN then he should immediately surrender the additional PAN card(s).
By mistake I have been using different PANs for different purposes 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.
Whom to contact in case of any matter relating to PAN?
In case of PAN card is not received , contact NSDL.
The Income Tax Department or NSDL can be contacted in any of the following means.
MODE Income Tax Department NSDL Website www.incometaxindia.gov.in www.tin-nsdl.com CallCenter 1800-180-1961 020-27218080 Email ID email@example.com firstname.lastname@example.org SMS SMS NSDLPAN Acknowledgement No. & send to 57575 to obtain application status. Address Tin Call Center 4th Floor, Mantri Sterling, Plot No. 341, Survey No. 997/8, Model Colony, Near Deep Bunglow Chowk, Pune - 411 016.