PERMANENT ACCOUNT NUMBER - PAN

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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TAX

TAX

Service Tax

The Service Tax is an indirect tax levied on certain services provided by certain categories of persons/firms/agencies. 

Guidelines for payment of tax by way of cheque:

Please make sure that the cheques you are submitting for payment of tax are 'account payee only' and the same may be drawn in the name of Commissioner of the concerned Municipal Corporation/ Nagara Palike.

Please retain the property tax bill and the receipt issued by the authority after having received the payment, since the same may be required for various purposes.

Procedure for registration

A prospective Service Tax assessee seeking registration shall file an application in Form ST-I (in duplicate) before the jurisdictional Central Excise officer/Service Tax Cell officer within thirty days from the date of notification of the taxable service. Department will issue the registration certificate to the assessee within 7 days of the receipt of application. In case of failure to issue registration certificate within 7 days, the registration applied for shall be deemed to have been granted and the assessee can carry on with his activity

Modes of payment of tax bill

You can pay your bill either by way of cash to the banks, or by way of cheque or demand draft.

Whether all properties are subjected to payment of tax?

Tax is levied on all the buildings, land, structures with land and all the non-agricultural lands within the limits of Corporation, municipality, village Panchayat, etc. except the properties which are specifically exempted from tax under law.

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Time limit for paying the Service Tax to the Govt.

In a case, where an assessee is an individual or a proprietary or partnership firm, service tax on the value of taxable services received during any quarter shall be required to be paid by him to the credit of the Central Govt. by 25th of the month immediately following the said quarter. In all other categories of service tax assessees, service tax on the value of taxable services received during any calendar month shall be required to be paid by them to the credit of the Central Govt. by 25th of the month immediately following the said calendar month.

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REVENUE AND AGRICULTURE LAND

REVENUE AND AGRICULTURE LAND

Revenue Sites

Sites formed on agricultural lands are revenue sites. They are unauthorised sites, which cannot be used for any non-agricultural purpose, residential houses.

Who can buy an agricultural land?

In Karnataka agricultural land can be bought after fulfilling 3 requirements. They are: (1) the annual average income of the person including agricultural income, should be less than Rs. 2 lakh. (2) The person must have an agricultural land in his name before the year 1974. (3) The person should be an agriculturist or an agricultural labour by profession.

RTC and Mutation Extracts

RTC means Record of Right, Tenancy and Inspection of crops. This is a primary record issued by village Accountant. It contains the details of survey number, total extent of the land, names of the persons who are the owners and their extent of holding, persons in possession and details of crops grown and land revenue for any particular period. It also contains the details of conversion of land from agriculture to non-agricultural purpose.

Mutation extract is an extract from the mutation register maintained by the Village Accountant. It records the transfer of land and the mode of such transfer, recommendations of the enquiry Officer for such transfer, date of entry of transfer and the record of rights.

How revenue land be used for residential purpose?

The Revenue Land has to be converted for residential purpose. After conversion of the agricultural land to the residential purpose, the assessment of the land has to be done by the local authority like Gram-panchayat, City Municipal Council, etc., for house site. The layout thus formed has to be approved by the statutory authorities like BMRDA, BDA.

How to detect the Revenue Sites and approved residential sites?

All the documents of the property, origin of title, RTC extracts, mutation extracts, conversion orders, paid conversion fee receipts, have to be examined. If the land is converted, it should be reflected in RTC. Further, tax payments receipts discloses the nature of the tax paid, whether land revenue or property tax. Revenue Lands have survey nos. and are mentioned in areas and guntas; whereas, residential sites have site numbers and mentioned in square feet. An experienced advocate would be helpful owing to the complexity of the different documents.

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LAW

LAW

Real Estate and Property matters

There are specialist lawyers advising on negotiating, documenting and executing real estate transaction in the Real Estate Team of Universal Legal.Members of the team have also assisted landowners, developers, corporate and private client in acquiring, selling, leasing, licensing industrial commercial and residential property.

Legal Advice:

Kumar Associates is doing following Legal Service :

Legal adviser for all services in banking

Bank loan matters

FEMA compliances

NDFC compliances

Negotiable instrument act matters,Cheque bouncing matters

Asset management

Banking regulation law

Debt securities

Consortium landings

Establishment/closure of bank service

Foreign exchange

Leasing and asset finance

Loan documentation

Restructing and compliances

Securitization of movable assets

Legal Documentations

Real estate market strategies, entering into agreements of purchase, sale, and investment and drafting the suitable documents for sale, lease, mortgage, Settlement, gift and power of attorney should be drafted with abundant caution.

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REGISTRATION, STAMPING AND EXECUTION

REGISTRATION, STAMPING AND EXECUTION

The documents are registered for the purpose of conservation of evidence, assurance of title, publicity of documents and prevention of fraud. Also, registration helps an intending purchaser to know if the title deeds of a particular property have been deposited with any person or a financial institution for the purpose of obtaining an advance against the security of that property.

Where the registration of document is done?

As per Section 28 and 29 of the Registration Act the document should be presented for registration at the office of the Sub-Registrar of Assurances within the jurisdiction of the concerned Sub-Registrar.

What stamp duty is payable to register an immovable property in Bangalore?

In B.B.M.R. areas, the stamp duty payable is either 8.4 percent of the market value of the property or the sale consideration shown in the document, whichever is higher. In places other than B.B.M.R areas, it is 8.5 percent.

What are the documents to be produced at the time of registration of a site or building?

The following documents/records must be produced at the time of registration of sale of a site or building.  An affidavit stating that the transaction is not violative of the provisions of Section 22-A of Indian Registration Act, extract of the assessment Register for the purpose of valuation of the property (Form No. 19 in Municipal Area or Form 9 or 10 in case of Panchayat area ), Corporation Katha.

Form No. 1 prescribed in Karnataka Stamp (Prevention of undervaluation) Rules. Permanent account number issued by the Income Tax Department or declaration in Form No. 60 or 61 if the value of the property to be registered exceeds Rs.5.00 lakhs where payment is made completely or partially in cash.

What is the time limit for presenting a copy of the decree for registration?

The copy of the decree or order may be presented for registration within four months from the date on which the decree or order was made. If the decree is appealable, it may be presented for registration within four months from the day on which it becomes final.

Is there is any time limit of presenting will for registration?

There is no time limit for presenting the will for registration.All other non-testamentary documents have to be presented within four months from the date of execution and there after within another four months on payment of fine. As per Section 27 of Indian Registration Act 1908, the will may be presented for registration or for deposit at any time, without any time stipulation.

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WILL

WILL

Will is a private and confidential document written by a living person, who is referred as Testator, manifesting the intention to bequeath the properties in favour of the beneficiaries as intended. In other words, it is the declaration of the intention of the testator as to the disposal of the property after his death, which will be operative only after the death of the Testator or Testatrix.

Kinds of wills:

There are two kinds of wills, privileged will and unprivileged will.  Privileged will are made by soldiers, airmen employed in expedition or actual warfare and a mariner in sea. All other kinds of wills are called unprivileged wills.

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Whether stamp duty is payable on will?

No stamp duty is payable on will, hence need not be written on stamp papers.

What is a duplicate will?

A duplicate will is that will of which two or more copies are made. If such copy is signed by the testator, it can operate as the original will. Here a will is executed in duplicate, out of which one is retained by the testator, while the other is deposited in the custody of another but the destruction of the duplicate will, in the testators possession, revokes the will.

Who is capable of making a will?

Every person (a) who is of sound mind and (b) who is not a minor can dispose of his property by will. 

A married woman can dispose off any property which she could alienate by her own act during her life-time through a will. Persons who are deaf, dumb or blind can make a will, if they are able to know what they are doing. A person who is ordinary insane may make a will during the interval when he is of sound mind. However, no person can make a will while he/she is in such a state of mind when he/she does not know what he/she is doing and is incapable of understanding the terms and conditions involved in a will. 

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RIGHT TO INFORMATION

RIGHT TO INFORMATION

What does information means under to Right to Information Act? 

Information means any material in any form including records, documents, memos, e-mails, opinions, advices, press releases, circulars, orders, logbooks, contracts, reports, papers, samples, models, data material held in any electronic form and information relating to any private body which can be accessed by a public authority under any other law for the time being in force but does not include "file noting" [S.2 (f)].

How to get information under the Right to Information Act?

Draft your application on a normal sheet of paper and submit it by post or in person to the Public Information Officer (PIO) along with the requisite fee [Remember to keep a copy of the application for your personal reference.]

Why do we need Right to Information Act?

In the absence of Right to Information Act, if you seek certain information from any authority, such authority may ignore your request or delay in furnishing the information, at his discretion.  But, if you seek the same information under the provisions of Right to Information Act, the concerned authority shall have no discretion to deny you the information and is duty bound to furnish information within a stipulated period unless such information falls within the category of deniable documents/information. Failure to furnish the information within the stipulated period would attract penal action against such authority. 

What is not open to disclosure under Right to Information Act?

The following is exempt from disclosure [S.8]

-Information, disclosure of which would prejudicially affect the sovereignty and integrity of India, the security, strategic, scientific or economic interests of the State, relation with foreign State or lead to incitement of an offence;

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-Information which has been expressly forbidden to be published by any court of law or tribunal or the disclosure of which may constitute contempt of court;

-Information, the disclosure of which would cause a breach of privilege of Parliament or the State Legislature;

-Information including commercial confidence, trade secrets or intellectual property, the disclosure of which would harm the competitive position of a third party, unless the competent authority is satisfied that larger public interest warrants the disclosure of such information;

-Information available to a person in his fiduciary relationship, unless the competent authority is satisfied that the larger public interest warrants the disclosure of such information;

-Information received in confidence from foreign Government;

-Information, the disclosure of which would endanger the life or physical safety of any person or identify the source of information or assistance given in confidence for law enforcement or security purposes;

-Information which would impede the process of investigation or apprehension or prosecution of offenders;

-Cabinet papers including records of deliberations of the Council of Ministers, Secretaries and other officers;

-Information which relates to personal information the disclosure of which has no relationship to any public activity or interest, or which would cause unwarranted invasion of the privacy of the individual (But it is also provided that the information which cannot be denied to the Parliament or a State Legislature shall not be denied by this exemption);

-Notwithstanding any of the exemptions listed above, a public authority may allow access to information, if public interest in disclosure outweighs the harm to the protected interests. This provision is qualified by the proviso to sub-section 11(1) of the Act which exempts disclosure of "trade or commercial secrets protected by law" under this clause when read along with 8(1)(d).

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