Permanent Account Number (PAN) has become a very important tool to the Income Tax Department in tracking high value transactions and ensuring compliance with the tax laws.
Mentioning of PAN has become mandatory in many financial transactions, particularly in the following areas:
• Operating demat accounts
• Deposit of Rs 50,000 and above in the banks
• Investments in shares, mutual funds and post office savings in excess of Rs 50,000 each
• Sale or purchase of motor vehicles, excluding two wheelers
• Sale or purchase of immovable properties valued at Rs 5 lakhs and above
• Applying for a new telephone connection (landline or mobile)
• Payment of Rs 25,000 or more against hotel bills
Even if you may not fall under these categories you need to file Income Tax Return for which PAN is required.
Benefits of having a PAN card
If you have a PAN card, it can be used as a proof of your identity, particularly when you have to check-in on the basis of your air tickets purchased online.
You can check whether the taxes paid by you are updated in the database of the Income Tax Department.
Further you can now also verify whether your employer or the institution has indeed remitted to the Income Tax Department the tax deducted from the payments made to you.
Is it necessary to file Income Tax return if you have PAN?
Just because you have PAN, it is not necessary to file Income Tax Return. Income Tax Return needs to be filed only when you have taxable income or you need to claim refund of tax deducted by your employer or the institution making payments to you towards interest or professional services or commission or rent or winnings from lottery / game shows or horse races or contracts etc.
However, the converse is true: you need PAN to file an Income Tax Return.
How to get PAN?
It is very simple. You need to submit your details in Form No. 49A to any of the PAN Facilitation centers, located in all cities and major towns, wherever Income Tax offices are located.
The UTI Investors Services Ltd (UTIISL) and National Securities Depository Limited (NSDL) are the authorised agencies to accept and process PAN application forms.
You may also apply for PAN online through UTIISL’s web site http://www.utiisl. co.in/pan/ or NSDL’s web site http://tin.nsdl. com/.
It will normally take about 2 to 3 weeks to get your PAN card delivered at your doorstep.
If you need a PAN card urgently, you may also get Tatkal PAN by applying online using your credit card. You will get your PAN on priority basis and the same will be communicated to you through email.
What are the details to be submitted for applying PAN?
Only very few details like the following need to be given in the case of individuals:
• Name including your other names, if any
• Father’s name to be given even in the case of married women
• Date of birth
• Address both official and residential
• Main source of your income salary or professional/ business or any other income
• Designation and code of your assessing officer. You may obtain this information from the facilitation centers of UTIISL or NSDL or from the web site of the income Tax Department at http://incometaxind ia.gov.in/ ao/Firstlevel. asp
You need to submit the following documents along with your application:
• Proof of identity
• Proof of address
• A recent colour photograph (3.5 cm X 2.5 cm)
You may submit copies of your passport/credit card/bank statement/voter’ s identity card/depository account/driving license/ration card/property tax assessment order to establish proof of identity and address. In addition, there are number of other documents like school leaving certificate/ matriculation certificate/ degree of a recognised educational institution/ water bill for proof of identity.
Likewise, you may use electricity bill/telephone bill/employer certificate/ rent receipt for proof of address. Even if you don’t have any of these documents, you may obtain a certificate of identity and/or address signed by a MP or MLA or a Municipal Councilor or a Gazette Officer.
How can I obtain PAN if I don’t stay in India?
Non-Resident Indians may obtain PAN by applying through their representative assessee, who has to be an individual residing in India.
Recently, non-residents are permitted to apply for PAN by giving their present address, even though it is not in India. In such a case, the non-resident individual has to submit copy of passport for proof of identity and address and bank statement for proof of address (if the address mentioned in the passport is different from the present address).
In the case of non-residents, who are foreign citizens, these documents will have to be attested by the Indian embassy in their country.
Other issues related to PAN
A person can have only one PAN and duplicate PANs, if any, must be surrendered. It is illegal to have duplicate PANs.
Even if a PAN is obtained from one place, return of income can be submitted at a different place, in case of change of address or jurisdiction.
If you wish to correct the particulars given in the PAN, you may submit an application for making modifications in the PAN. This will ensure that the information in the database of the Income Tax Department is updated.
Guide Lines for Filling Online PAN Application
(a) Online PAN application is not available for:
* Government Organisations
(b) An applicant will fill Form 49A online and submit the form.
(c) If there are any errors, rectify them and re-submit the form.
(d) A confirmation screen with all the data filled by the applicant will be displayed.
(e) The applicant may either edit or confirm the same.
(f) On confirmation, an acknowledgment will be displayed. The acknowledgment will contain a unique 15-digit acknowledgment number.
(g) The applicant is requested to save and print this acknowledgment.
(h) ‘Individual’ applicants should affix a recent colour photograph (size 3.5 cm x 2.5 cm) in the space provided in the acknowledgment. The photograph should not be stapled or clipped to the acknowledgement. (The clarity of image on PAN card will depend on the quality and clarity of photograph affixed on the acknowledgment).
(i) Signature / Left Thumb Impression should only be within the box provided in the acknowledgment. In case of applicants other than ‘Individuals’, the authorised signatory shall sign the acknowledgment and affix the appropriate seal or stamp.The signature should not be on photograph. If there is any mark on photograph such that it hinders the clear visibility of the face of the applicant, the application will not be accepted.
(j) Thumb Impression should be attested by a Magistrate or a Notary Public or a Gazetted Officer, under official seal and stamp.
(k) If communication Address is within India
(a). The fee for processing PAN application is Rs.67.00 (Rs.60.00 + 12.24% service tax).
(b). Payment can be made either by – Demand Draft – Cheque – Credit Card
(c) If any of addresses i.e. office address or residential address is a foreign address, the payment can be made only by way of demand draft payable at Mumbai.
(l) If communication Address is outside India
(a). The fee for processing PAN application is Rs.717.00[Application fee Rs.67 (Rs.60.00 + 12.24% service tax) + Dispatch Charges Rs. 650.00].
(b). Payment can be made only by Demand Draft payable at Mumbai.
(c). At present this facility is available for a select list of countries. Applicants from other countries may contact NSDL at the contact details given in point (v) below. This point is not applicable if applicant is providing the representative assessee details in the point no.14 of application form
(m) Demand draft and cheque should be drawn in favour of ‘NSDL – PAN’.
(n) Demand draft shall be payable at Mumbai and the acknowledgment number should be mentioned on the reverse of the demand draft.
(o) Applicants making payment by cheque shall deposit a local cheque (drawn on any bank) with any HDFC Bank branch across the country (except Dahej). The applicant shall mention NSDLPAN on the deposit slip. List of HDFC Bank Branches
(p) Credit card payment Persons authorised to make Credit card payment are as below:
|
Category of Applicant |
Payment by Credit Card can be made by / for |
|
Individual |
Self, immediate family members (parents, spouse, children) |
|
HUF |
Karta of the HUF |
|
Company |
Any Director of the Company |
|
Firm |
Any Partner of the Firm |
|
Association of Person(s) / Body of Individuals / Association of Person(s) Trust / Artificial Juridical Person / Local Authority |
Authorised Signatory covered under section 140 of Income Tax Act, 1961 |
Applicants making credit card payment will be charged an additional surcharge of Rs.5.00 by the bank providing payment gateway facility. On successful credit card payment acknowledgment will be displayed. Applicant shall save and print the acknowledgment and send to NSDL as mentioned in point (q) & (r) below.
(q) The acknowledgment duly signed, affixed with photograph (in case of ‘Individuals’) alongwith Demand Draft, if any, and proof of identity (name in the application should be same as in the proof of identity) & proof of address (Individuals, HUFs, Body of Individuals, Association of Persons & Artificial Juridical Person should provide proof of address of residence stated in the application) as specified in the application form is to be sent to NSDL at ‘Income Tax PAN Services Unit, National Securities Depository Limited, 1st floor,Times Tower, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel (W), Mumbai – 400013′.
(r) Superscribe the envelope with ‘APPLICATION FOR PAN – Acknowledgment Number’ (e.g. ‘APPLICATION FOR PAN – 881010100000097′).
(s) Your acknowledgment, Demand Draft, if any, and proofs, should reach NSDL within 15 days from the date of online application.
(t) Applications received with demand draft or cheque as mode of payment shall be processed only on receipt of relevant proofs and realisation of payment.
Do’s and Don’ts
Do’s
- Do use ‘Form 49A‘ for making application for allotment of PAN.
- Do fill the application in block letters in English and preferably with black ink.
- Do paste a recent colour photograph (size 3.5 cm X 2.5 cm).
- Do provide the signature within the box.
- If thumb impression is put on the application form, do get the thumb impression attested by Magistrate or a Notary Public or a Gazetted Officer, under official seal and stamp.
- Do provide correct AO code in the application.
- Do specify AO code as below if applicant is a defence employee
|
Army – PNE W 55 3 Navy – MUM W 11 8 Air Force – DEL W 72 2 |
- Do attach Proof of Identity (POI) and Proof of Address (POA) as per Rule 114 (4) of Income Tax Rules, 1962.
- Do provide the POI and POA which have name exactly as written in the application.
- Do provide details of Representative Assessee in column 14 of application form, if applicant is Minor, Idiot, Lunatic or Deceased.
- Do provide POI and POA for Representative Assesse also, if Representative Assessee is appointed.
- Do write the complete postal address in the application with landmark.
- Do mention correct pin code in the address field.
- Do mention telephone number / e- mail id in the application.
Don’ts
- Do not overwrite or make corrections in the application.
- Do not pin or staple the photograph.
- Do not sign across the box (i.e. signature should be within the box)
- Do not provide POI and POA which are not in the name of the applicant.
- Do not write any additional details (date, designation, rank, etc.) along with the signature in the box.
- Do not mention Husband’s name in the Father’s Name column.
- Do not abbreviate your name or do not use initials.
- Do not apply for a new PAN if you already have one.
For Online Application Please visit: https://tin.tin.nsdl.com/pan/index.html
information courtesy | https://tin.tin.nsdl.com/pan/index.html | http://blogs.ibibo.com/sujalreddy/PAN-and-its-Uses---Use-wisely.html |
