What Is PAN?
>> Thursday, December 31, 2009
The 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. A typical PAN is AFRPP1595D.
Is it necessary to have a 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 in connections with travel to any foreign country of amounts exceeding Rs.25, 000.It is also mandatory to mention PAN for obtaining a telephone or cellular telephone connection.
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 in a bank.It is statutory responsibility of a person receiving document relating to economic or financial transactions notified by the CBDT to ensure that PAN has been duly quoted in the document.
All existing assesses or taxpayers or persons who are required to furnish a return of income, even on behalf of others, must obtain PAN. Some such persons are Individuals, Companies, Partnership Firms, HUFs, Trusts or Representative assesses.
Can you have more than one PAN? Obtaining or possessing more than one PAN is against the law.Filling the PAN card form.
* You are required to send the following documents along with the application form for PAN cards:
* 49 A form, duly filled in and signed.
* Photocopy of any identity proof with your photograph (like driving license, college ID, work ID).
* Photocopy of any address proof (like ration card, etc).
* Two photographs.
* If you are out of Mumbai, the I-T office will also need your ward number/range/income tax assessing officer number (which you can find from the copy of the acknowledgement of the last return filed.) If you do not have that, you will have to ask your income tax department in your city, and they will give you the ward number.
* Work on your PAN card will begin after the payment has been made. The card shall be sent to you via post/courier to your postal address as mentioned by you.
I-T officials protest.Meanwhile, Income Tax employees and officers on Friday staged a demonstration in front of I-T office in South Mumbai, protesting against outsourcing of PAN work to UTI Investor Services Ltd.
The workers also submitted a memorandum to the Central Bureau of Direct Taxes chairman, through the chief commissioner of I-T, seeking an 'immediate winding up' of the services centers opened by UTIISL on I-T office premises.
"The I-T department has outsourced PAN cards issuing and related works to UTIISL from July 1, despite the fact that 97 per cent of the work was completed by I-T personnel," Joint Council for Action convener Ashok B Salunkhe said.
He alleged that UTIISL had, in turn, outsourced the work to Bajaj Capital Ltd, and was acting as 'middleman' for the whole deal.Rediff Business Desk in Mumbai
Is it necessary to have a 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 in connections with travel to any foreign country of amounts exceeding Rs.25, 000.It is also mandatory to mention PAN for obtaining a telephone or cellular telephone connection.
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 in a bank.It is statutory responsibility of a person receiving document relating to economic or financial transactions notified by the CBDT to ensure that PAN has been duly quoted in the document.
All existing assesses or taxpayers or persons who are required to furnish a return of income, even on behalf of others, must obtain PAN. Some such persons are Individuals, Companies, Partnership Firms, HUFs, Trusts or Representative assesses.
Can you have more than one PAN? Obtaining or possessing more than one PAN is against the law.Filling the PAN card form.
* You are required to send the following documents along with the application form for PAN cards:
* 49 A form, duly filled in and signed.
* Photocopy of any identity proof with your photograph (like driving license, college ID, work ID).
* Photocopy of any address proof (like ration card, etc).
* Two photographs.
* If you are out of Mumbai, the I-T office will also need your ward number/range/income tax assessing officer number (which you can find from the copy of the acknowledgement of the last return filed.) If you do not have that, you will have to ask your income tax department in your city, and they will give you the ward number.
* Work on your PAN card will begin after the payment has been made. The card shall be sent to you via post/courier to your postal address as mentioned by you.
I-T officials protest.Meanwhile, Income Tax employees and officers on Friday staged a demonstration in front of I-T office in South Mumbai, protesting against outsourcing of PAN work to UTI Investor Services Ltd.
The workers also submitted a memorandum to the Central Bureau of Direct Taxes chairman, through the chief commissioner of I-T, seeking an 'immediate winding up' of the services centers opened by UTIISL on I-T office premises.
"The I-T department has outsourced PAN cards issuing and related works to UTIISL from July 1, despite the fact that 97 per cent of the work was completed by I-T personnel," Joint Council for Action convener Ashok B Salunkhe said.
He alleged that UTIISL had, in turn, outsourced the work to Bajaj Capital Ltd, and was acting as 'middleman' for the whole deal.Rediff Business Desk in Mumbai
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