Issues regarding PAN allotment

For filing of return, it is mandatory to have PAN.A person applying for PAN has to give his details in a prescribed form & the same will be allotted to him by the Income Tax Department. Earlier, when the assessee identification system was based on “GIR Number” i.e.”General Index Register Number” that used to be allotted, “Free of Cost”, by the concerned Income Tax Officer who had a jurisdictional authority to assess the assessee.

Later on this was switched over to the era of “Permanent Account Number”, under the authority of new Section 139A, substituting the old one, by Finance Act, 1995,with effect from 1-7-1995 and by insertion of New Rule 114, by replacing the old Rule 114, with effect from 1-4-1976.

Due to the some reasons, this function of receiving applications and allotment of Permanent Account Number and issue of PAN Card transferred to NSDL. With this switch over, now the applicants were required to pay requisite amount, as prescribed by the authorities, along with the PAN application.

Making an application for allotment of the Permanent Account Number and incurring “COST” for that is “unfair and unjust” to the applicant. It is the proprietary/statutory function of the Income Tax Department to allot the same “Free of Cost”, as the same has been the normal part of its function, empowered by the Income-tax Act, 1961.

Moreover, there are some hardships being faced by the persons applying for PAN. One of the hardships is that the allotment of PAN is not done in a timely manner. Though there is no time limit prescribed under any of the provisions of Income-tax Act regarding issuing PAN & PAN card but it is essential for the Income Tax Authority to issue PAN & PAN card within a prescribed time period- In the case of The Honorable Calcutta High Court in the case of Chandrakant Kandalal Sheth vs. Union of India & Ors. [255 ITR 407] it has been held that three months period can be  construed as the maximum time period for issuance of PAN & delivery of PAN card & if the concerned authority finds that PAN cannot be given quickly, it must give the reason therefore at the earliest.

It is suggested that :

a) The person entrusted with the work of verification should possess sufficient knowledge & understanding of the provisions of the Income-tax Act so as to complete the assigned work in a timely manner.

b) If the application of the applicant is withheld by NSDL, NSDL should inform the applicant the reasons thereof.

c) If there are any queries/doubts regarding details provided in form no. 49A, NSDL should clarify the same with the applicant.

d) CBDT should fix a time limit for issuance of PAN & delivery of PAN card & also should take appropriate actions against undue delays in allotment of PAN.

Source- Pre-budget Memorandum 2014 on direct taxes by ICAI

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Category : Income Tax (24909)
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Tags : ICAI (2148) pan number (259)

0 responses to “Issue PAN for Free, Fix time limit for issue and Give reason for rejection – ICAI”

  1. Vishal choudhary says:

    this is not fair sir . is desh m 1 prof hona chahiye admi k pass varna sari umar to formalty puri karne m hi chali jati h insan ki

  2. Jagbir says:

    The charges for any correction in PAN data are are also UNJUST and UNWARRANTED. Why should someone be asked to pay Rs 106/- for intimating his changed address to the IT authorities even though NO NEW/UPDATED PAN card is required to be sent to him

  3. Nisha Singh says:

    D.K.Sir ,
    Na Suno , Na Karo , No bolo , na Dekho , jo hota hai hone do . Can any one explain what is the use/ significance of D.O.B. in pan . Multiple identity and address proof were issued for various purposes and lots of hard earned money of Indian people wasted for no use . a poor country like of us should issue one proof for all purposes .

  4. PREM SAGAR KUNDE says:

    HAI, I AM A RETIRED EMPLOYEE OF IT DEPARTMENT WORKING FROM 1958 TO 1995 AND THEN PRACTISING A S A TAX CONSULTANT. WHILE I WAS IN SERVICE, WE USED REQUEST THE TAX PAYERS TO COME AND APPLY FOR PAN CARD, BUT TAX CONSUKTANTS USED TO HOOD WINK SAYING THAT PL.DONOT GO TO LION’S MOUNTH, SO THERE WAS A POOR ESPONSE TO THE ISSUANCE OF PAN CARD, EXCEPT EMPLOYEES WHO PAY TAX WERE ISSUED PAN CARD. BUT WHEN THE NSDL INITIALLY HAS OUT A FEES OF RS. 65 OR SO, THEN THERE WAS BIG RUSH FOR THE PAN CARD. IN THE BEGINING EVEN THE NSDL ISSUED THE PAN CARDS AS THEY LIKED BASING ON THE INFORMATION PROVIDED IN 49-A. BUT LATER ON, WHEN THE TAX PAYERS WERE CAUSGHT IN “SIBIL” FOR NOT OPAYING THE INSTALMENTS EMI ETC., THEN 90% OF THE DEFAULTERS HAVE CHANGED THE DATE OF BIRTH AND TAKEN PAN CARDS. NOW IS MOST AMZING TO KNOW THAT 40 TO 50% OF THE TAX PAYERS HAVE TWO OR MORE PAN CARD, WHO ARE LIVING IN HYDERABAD AND TWIN CITIES AREA. NOW THAT THEY HAVE REALISED THE BOGUS PAN CVARD IS OF NO USE, AS THE AADHAR CARD IS THE BASIS AND WHEREIN THE CORRECT DATE OF BIRTH IS INCORPORATED, THEN SLOWLY THEY ARE SURRENDERING THE DUPLICATE CARDS.
    BESDIES THE ABOVE, NOW SOME OF THE NSDL FRANCHISEE CENTRES ARE RESORTING TO MALPRACTICES BY COLLECTING HUGE AMOUNTS EVEN TO THE EXTENT OF RS.1,000/- AND ISSUING THE CARDS ON THE BASIS OF THE 3 PHOTOS. TO REMOVE THIS PRACTICE, I SINCERELY SUGGEST AND REQUEST THAT THE DEPARTMENT MAY KINDLY BE GIVEN THE POWERS TO ISSUE THE PAN CARD, AS IT WAS INVOGUE IN PREVIOUS DAYS TO REMOVE THE DIFFICULTIES FACED BY THE TAX PAYERS, KEEPING IN VIEW THAT . NOW THE IMPORTANCE OF PAN CARD IS VERY HIGH.
    THANNKS
    PREM SAGAR KUNDE
    9959419148

  5. CA D.K.MOTIWALA says:

    For allotment of Pan , Proof of D.O.B is required to be submitted in all cases including Senior citizen . as per list of document require to be submitted for the purpose is Copy of a. Birth Certificate or b. Pension payment order; or c. Marriage certificate issued by Registrar of Marriages; or d. Matriculation Certificate; or e. Passport; or f. Driving License; or g. Domicile Certificate issued by the Government; or h. Affidavit sworn before a magistrate stating the date of birth .
    Close scrutiny of document suggest that a non matric senoir citizen cannot apply or get pan w.e.f.feb `14 .
    at lest my 10 clients who r farmers sold their land for crores , arising Capital gains & ready to pay tax but due to this lakuna ,unable to obtain pan and finally forced not to pay tax . is this the contention of law makers .

  6. Anishkumar says:

    They changed their DOB proof. they not accept leaving certificate but accept Matriculation Certificate it means PAN will not allot those person who is Non-metric and not have Date of Birth certificate.

  7. SHARAD says:

    also nsdl is issuing pan card only on the basis of the data filled in the application form, and not verifying the documents attached with it. and on complaining not taking any responsibility. see my reply by the manager mr.rajesh happe, nsdl.pune. appl no wns126 /375147/385912

  8. Shivang Somaiya says:

    Recently they have stopped accepting SCHOOL LEAVING CERTIFICATE as a proof of date of birth. Driving Licence is accepted. But RTO accepts SLC as proof of date of birth. This is anomalous situation. You accept a document which is based on SLC but not accept SLC itself. School Leaving Certificate should be accepted as proof of date of birth of the applicant of PAN card.

  9. nagesh kini says:

    As in the case of the KYC norms any one proof document listed should be accepted for the PAN Card.
    Now that the Parthasarathi Som Taxation Reforms Committee recommended that the PAN card be made the universal proof for both identity and residence it needs to be tweaked to include the residential address which is anyway made available in the application.
    This lacuna or its absence requires the production of an additional proof. This can be brought about prospectively in future issuance.

  10. ASHWIN GALA says:

    A VERY GOOD POINT TAKEN UP. GOOD SUGGESTION.

  11. P ROY says:

    PAN SHOULD BE MADE MANDATORY FOR ALL CITIZENS ABOVE 18 YEARS OF AGE.

  12. Haresh says:

    Yes,Right hai….

  13. DB DESAI says:

    Recently they have stopped accepting SCHOOL LEAVING CERTIFICATE as a proof of date of birth. Driving Licence is accepted. But RTO accepts SLC as proof of date of birth. This is anomalous situation. You accept a document which is based on SLC but not accept SLC itself. School Leaving Certificate should be accepted as proof of date of birth of the applicant of PAN card.

  14. anand says:

    PAN must be issued free of cost. It is for the convenience of the Dept that they issue PAN. Earlier Dept issued free. Now charges for PAN vary from Rs. 500 to Rs. 5000. Dept does not give reasons for rejection. Why should the assessee pay charges for PAN?

  15. R P Sharma says:

    Sir is the requirement of furnishing date of birth certificates still there or has been removed

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