Saturday 10 October 2015

PERMANENT ACCOUNT NUMBER - PAN


Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department.

Who must have a PAN?
i.All existing assessees of taxpayers or persons who are required to furnish a return of income, even on behalf of others, must obtain PAN.

ii.Any person, who intends to enter into financial transaction where quoting PAN is mandatory, must also obtain PAN.

iii.The Assessing Officer may allot PAN to any person either on his own or on a specific request from such person.

Necessity of  PAN:
It is mandatory to quote PAN on return of income, all correspondence with any income tax authority.  From 1 January 2005 it is mandatory to quote PAN on challans for any payments due to Income Tax Department.  It is also compulsory to quote PAN in all documents pertaining to financial transactions notified from time to time by the Central board of Direct Taxes.  Some of such transactions are sale and purchase of immovable property or motor vehicle or payments in cash, for amounts exceeding Rs. 25,000/- to hotels and restaurants or in connection with travel to any foreign country.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.

Where to apply for PAN?
In order to improve PAN related services, the Income Tax department has authorised UTI Investor Services Ltd. (UTIISL) to set up and manage IT PAN Service Centres in all cities or towns where there is an Income Tax Office and National Securities Depository Limited (NSDL) to dispense PAN services from TIN Facilitation Centres.  For convenience of PAN applicants in big cities, UTIISL has set up more than one IT PAN Service Centre and likewise there are more than one TIN Facilitation Centers.

Can a person obtain or use more than one PAN?
Obtaining or possessing more than one PAN is against the law.

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