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What is
P.A.N ?
Permanent Account Number is a number by which the Assessing Officer can
identify any person. Presently the Income Tax Department is allotting
PAN under the New Series to all assessees which consists of ten
alphanumeric character and is issued in the form of a laminated card.
The PAN is ultimately meant to supplant the General Index Register
Number which is currently in use. The General Index Register Number is a
number given an Assessing Officer to the assessees in the General Index
Register maintained by him which also contains the designation and the
particulars of the Assessing Officer. As per section 139A of the Act
obtaining PAN is a must for the following persons:-
1. Any person whose total income or the total income of any other
person in respect of which he is assessable under the Act exceeds the
maximum amount which is not chargeable to tax.
2. Any person who is carry on any business or profession whose total
sales, turnover or gross receipts are or is likely to exceed Rs. 5 lacs
in any previous year.
3. Any person who is required to furnish a return of income under
section 139(4) of the Act.
- The requirement for
applying for allotment of PAN under the New Series has now been
extended to the whole of India.
- PAN is required to be
quoted in all the transactions mentioned below:-
- In all returns and
in all correspondence with the department.
- In all challans
for payment of any tax or sum due to the department.
- In certain
notified transaction. (see the sub module on notified
transactions where PAN has to be quoted)
How
to apply for PAN
Application for allotment of
PAN is to be made in Form 49A.
Following points must be noted while filling the above form:-
- Application from must
be typewritten or handwritten in black ink in BLOCK LETTERS.
- Two black & white
photographs are to be annexed.
- While selecting the "Address
for Communication", due care should be exercised as all
communications thereafter would be sent ate indicated address.
- In the space given
for " Father's Name" , only the father's name should be
given. Married ladies may note that husband's name is not required
and should not be given.
- Due care should be
exercised to fill the correct date of birth. The form should be
signed in English or any of the Indian Languages in the 2 specified
places. In case of thumb impressions attestation by a Gazetted
Officer is necessary.
Tips
for filling form 49A
The form should be filled in
carefully and completely since it may not be possible for the Department
to allot PAN if all the details are not filled in. In any case the
following information must necessarily be given:-
In the case of companies, the information that is necessarily required
is as under:
- Date of Incorporation
- Registration Number.
- Date of commencement
of the business
- Full and complete
names of atleast two directors of the company
- Branch addresses and
branch names of the company.
Unless the form no.49A
contains all the above informations it would not be possible to allot
the PAN to a company assessee.
In the case of individuals, the information that is necessarily
required is as under:
- Full and complete name
of the assessee
- Full and complete name
of his/her Father.
- Date of birth
- Sources of income
Unless the form no.49A
contains all the above information's it would not be possible to allot
the PAN to an individual assessee.
Usefulness of Permanent Account
Number
- If PAN is quoted in all documents,
it would be very convenient to locate the assessing officer holding
jurisdiction over the person concerned.
- If PAN is quoted in all challans,
the credit for payment of taxes can be quickly granted to the
taxpayer.
- If PAN is quoted in all specified
transactions, the Department can excercise greater control over
unregulated and undisclosed transactions.
Quoting
of Permanent Account Number be quoted
[Provisions of Section 139A(5)]
Every person shall quote his permanent account number or General Index
Register Number in all documents pertaining to the transactions
specified below :-
- Sale or purchase of any immovable
property valued at Rupees five lakh or more.
- Sale or purchase of a motor vehicle
or vehicles, which requires registration by a registering authority.
- A time deposit, exceeding fifty
thousand rupees, with a banking company to which the Banking
Regulation Act, 1949 applies (including any bank or banking
institution referred to in section 51 of that Act)
- A deposit, exceeding fifty thousand
rupees, in any account with Post Office Saving Bank
- A contract of a value exceeding ten
lakh rupees, for sale or purchase of securities as defined in clause
(h) of section 2 of the Securities Contracts (Regulation) Act, 1956
(42 of 1956)
- Opening an account with a banking
company to which the Banking Regulation Act, 1949 applies (including
any bank or banking institution referred to in section 51 of that
Act,)
- Making an application for
installation of a telephone connection (including a cellular
telephone connection)
- Payment to hotels and restaurants
against their bills for an amount exceeding twenty five thousand
rupees at any one time.
- A person shall quote
General Index Register Number in the documents pertaining to
transactions specified in above clauses (a) to (h) till such time
the permanent account number is allotted to him;
- A person, being a
minor and who does not have any income chargeable to income tax,
making an application for opening an account referred to in the
clause (f) of this rule, shall quote the permanent account number or
General Index Register Number of his father or mother or guardian,
as the case may be.
- Any person, who has
not been allotted a permanent account number or who does not have a
General Index Register Number and who makes payment in cash or
otherwise than by a crossed cheque drawn on a bank or by a crossed
bank draft in respect of any transaction specified in clauses (a) to
(h) , shall have to make a declaration in Form No. 60 giving therein
the particulars of such transaction.
In
simple terms :
IT IS MANDATORY TO QUOTE PAN in
- application for
opening an account with a bank
- application for
installation of a telephone connection (including a cellular
telephone)
- documents pertaining
to sale or purchase of a motor vehicle
- documents pertaining
to sale or purchase of immovable property valued at Rs. 5 lakh or
more
- documents pertaining
to deposits exceeding Rs. 50,000 in any account with a Post Office
Savings Bank
- documents pertaining
to a contract of a value exceeding Rs. 10 lakhs for sale or purchase
of securities (Shares, Debentures etc.)
- payment to hotels &
restaurants against their bills for an amount exceeding Rs. 25,000
at any one time
- Returns of income
- Challans for payment
of direct taxes
- All correspondence
with Income-Tax Department
Persons to whom
provisions of section 139A shall not apply
The provisions of section 139A shall not apply to following class or
classes of persons, namely:-
- The persons who have agricultural
income and are not in receipt of any other income chargeable to
income-tax. Such persons shall instead be required to make a
declaration in Form No. 61 in respect of transactions referred to in
clauses (a) to (h) of rule 114B of Income Tax Rules.
- Non-residents referred to in clause
(30) of section 2 of Income tax Act, 1961
- A non resident, who enters into any
transaction referred to in clauses (a) to (h) of rule 114B, shall
have to furnish a copy of his passport.
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