Tax Info >> PAN (Permanent Account Number)

The Permanent Account Number (PAN) is an unique alphanumeric combination of 10 CHARACTERS allotted by the Income Tax Department. It is issued in the form of a laminated card. It is PERMANENT for life and will not change with change of address or station or change of Assessing Officer. The PAN is ultimately meant to supplant the General Index Register (GIR) Number, which is currently in use.

India's Finance Minister in his budget speech on February 29, 2000 has emphasized the importance of PAN.

" In keeping with international practice, it is proposed to promote a common business identification number to be used by different agencies and departments. In our context, the Permanent Account number of income tax would be that instrument. I hope that in the near future, the PAN card will replace the ration card as the primary identification document for a sizeable number of people".

The Budget OF 2001 has also enhanced the importance of PAN. It has been made mandatory for the employees to inform their PAN to their employers.
The employers will have to mention this PAN in their Annual Returns (Form No. 24). The Budget of 2002 has made it punishable for quoting a wrong or false PAN in any of the documents where PAN is to be quoted.


Your PAN will have a number like : AACPJ8638F
A sample of a PAN card is shown below :

What is Permanent Account Number :

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:-

 1.  In all returns and in all correspondence with the department.
2. In all challans for payment of any tax or sum due to the department.
3. In certain notified transaction. (see the sub module on notified transactions where  PAN has to be quoted).
TOP

How to obtain PAN ?

Form no.49A has been prescribed for making an application for allotment of the PAN. The existing assessees who are already filing their returns of income and who have not been allotted the PAN can attach form No.49A(duly filled in) along with the return of income while filing their return of income with their respective Assessing Officers. However, new assessees whose income is likely to exceed Rs.50,000/- can fill up the form and submit it to the "new assessee" circle or ward which has jurisdiction over them. In the cases of persons carrying on business or profession, if the turnover is likely to exceed Rs.5,00,000/-(Rs. five hundred thousand) in any previous year, the form No.49A should be filled up and presented to the Range/Circle/Ward where the new returns are required to be filed.

APPLY FOR PAN NOW.

TOP

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.
TOP

  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 :-

   a.  Sale or purchase of any immovable property valued at Rupees five lakh or more.
   b.  Sale or purchase of a motor vehicle or vehicles, which requires registration by a registering authority.
  c. 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).
 d. A deposit, exceeding fifty thousand rupees, in any account with Post Office Saving Bank.
  e.  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).
 f. 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,)
 g. Making an application for installation of a telephone connection (including a cellular telephone connection).
 h. 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
 

If you have applied for allotment of permanent account number (PAN) under the new series and have received a letter asking for further information, then please send your reply immediately.

 
  • Individuals should give their, as well as their father's full name (Expand Initials)
  • Married Ladies should give their father's name in full (and not Husband's name )
  • Exact date of Birth/ Incorporation (Not merely month or year) should be specified.
  • Give Pin code in all your addresses.
 

Failure to comply with the provisions of section 139A of Income - Tax Act attracts penalty of Rs. 500 /- (minimum) to Rs. 10,000/- (Maximum) for each Default or Failure.

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:-

a.

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.

b. Non-residents referred to in clause (30) of section 2 of Income tax Act, 1961.
c. 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.
TOP


Obligation of the authorities ?  

 Any Authority on receiving any document for purchase or sale of any immovable property or a motor vehicle and on receiving any document relating to a transaction specified under clauses (a) to (h) of sub-rule (i) of rule 114B of Income Tax Rules shall ensure that Permanent Account Number or the General Index Register Number has been duly quoted in the document or declaration in Form No. 60 or Form No. 61, as the case may be.The specified Authorities are:-

 
  • A registering officer appointed under the Registration Act, 1908 (16 of 1908).
  • A registering authority referred to in clause (b) of sub-rule (1).
  • Any manager or officer of a banking company referred to in clause (c) of sub rule (1).Post Master.

  • Stock broker, sub broker, share transfer agent, banker to an issue, trustee of a trust deed, registrar to an issue, merchant banker, under writer, portfolio manager, investment adviser and such other intermediaries registered under section 12 of the   Securities and exchange Board of India Act, 1992 (15 of 1992).

  • Any authority or company receiving application for installation of a telephone by it.
  • Any person raising bills referred to in clause (h) of sub-rule (i).
  • Such authority shall intimate the details of transactions to the Director of Income Tax (Investigation) and shall forward the following documents.
a.

A statement indicating therein the details of all the documents pertaining to any transaction refered to in clauses (a) to (h) of rule 114B of Income Tax Rules wherein the permanent account number General Index Register Number is quoted.

b.  The statement referred to in clause (a) shall contain.
i. Name and address of the person entering into the transactions.
ii. Nature and date of the transaction.
iii. Amount of each transaction.
iv. Permanent account number or General Index Register Number quoted in the documents pertaining to any transaction.
c. Copies of declaration in Form No. 60.
 d.  Copies of declaration in Form No. 61
 e.  Copies of passport.

The statement, declaration and copies of passports shall be forwarded to the concerned Director of Income-tax (Investigation) by every person within one month of receipt of the same by such person.

TOP

Online PAN Application
Income Tax Department has introduced one more convenience for taxpayers: PAN applications can now be submitted online. Required details are available at http://tin.nsdl.com After data is entered and submitted online, an Acknowledgment Form will be displayed on the screen that would contain a unique acknowledgement number. This Acknowledgment Form should be printed and all applicants should affix 'signature' within the box provided on this Acknowledgment Form. In cases of applications by other than 'Individuals' the authorized signatory shall sign the Acknowledgment Form and affix appropriate seal or stamp. Only 'Individual' applicants would be required to paste (and not staple or clip) a recent colour photograph (size 3.5 cm x 2.5 cm) in space provided on the Acknowledgment Form. Clarity of image on PAN card will depend on quality and clarity of the photograph so pasted on the form.

Along with Acknowledgment Form, processing fee of Rs.60 plus 8% service tax, i.e., Rs.65, will have to be sent through demand draft or by cheque in favour of 'NSDL - PAN'. Demand drafts should be made payable at Mumbai whereas payments through cheque can be made through a local cheque, drawn on any bank, with any HDFC Bank branch across the country (except Dahej). Deposit slip for cheque should mention 'NSDL - PAN' as the 'account name' and '5422320001523' as the 'account number' of NSDL to which such payment will be credited. The fact that the draft or cheque is towards a PAN application could also be indicated by writing 'PAN Application' on reverse of the demand draft or cheque as the case may be and 'Acknowledgement Number' should also be mentioned.

Acknowledgment Form duly signed, affixed with photograph (only in case of 'Individuals') along with demand draft or cheque as the case may be, and required proof of 'identity' and 'address' should be sent to NSDL at 'National Securities Depository Limited, 4th Floor, Trade World, 'A' Wing, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai - 400 013'. Envelope should be super-scribed with 'APPLICATION FOR PAN - Acknowledgment Number' (e.g. 'APPLICATION FOR PAN - 881010100000097). Application will be processed only on receipt of the Acknowledgement Form, relevant proofs and realization of demand draft or cheque as the case may be.
TOP

Tatkal PAN
It is now possible to apply for PAN through Internet and pay Rs.60 + Service Tax, as applicable, through a nominated credit card. In such cases Tatkal, PAN will be communicated through e-Mail in 5 working days. The PAN card will, however, be printed and forwarded only after supporting documents and photograph are received by M/s NSDL. Failure to send supporting documents and photograph within stipulated time may result in cancellation of PAN so allotted. At present this facility is available through M/s NSDL (www.tin-nsdl.com) only, though very soon M/s UTIISL (www.utiisl.co.in) will also offer a similar facility.
TOP