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,
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 his\her tax transactions.
Income
Tax E-filing Return
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Process
of Filing Rectification Return
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Common
Errors in Filing Rectification Return
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Common
Mistakes in E-filling of Income Tax Return (ITR)
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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-
1 -
Online mode
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
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.
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)
Uses of PAN...
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.
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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