Mandatory Pan Under The Income-tax Act

Advocate Bhavesh C. Popat

A Permanent Account Number (PAN) is one of the most important documents in the country today. It is an identification number which the Income Tax Department gives to all taxpayers.

You need to quote the PAN for all financial transactions like opening a bank account, buying a property of a car, buying or selling shares or mutual funds, applying for a visa/passport, making payment of income tax or filing your tax return, applying for a bank loan, etc.

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

A typical PAN is AABPS1205E.

*How to apply for a PAN? Can an application for PAN be made on plain paper?*

PAN application should be made only on Form 49A. A PAN application (Form 49A) can be downloaded from the website of Income Tax department or UTIISL or NSDL (www.incometaxindia.gov.in,www .utiisl.co.in or tin.nsdl.com) or printed by local printers or photocopied (on A4 size 70 GSM paper) or obtained from any other source. The form is also available at IT PAN Service centres and TIN Facilitation centres.

*Can an application for PAN be made in Form 49A obtained from anywhere?*

Yes, PAN application may be made on Form 49A obtained from any source other than IT PAN Service Centres or TIN Facilitation Centres. For instance, a PAN application may be made on form downloaded from the website of Income Tax department or UTIISL or NSDL; or on form printed by local printers or a photocopy of downloaded or printed form.

*Can an application for PAN be made through Internet?*

Yes, application for fresh allotment of PAN can be made through Internet. Further, requests for changes or correction in PAN data or request for new PAN card (for an existing PAN) may also be made through Internet. For more details visit (www.tin-nsdl.com)

*What documents and information have to be submitted along with the Application for Form 49A?*

a. Individual applicants will have to affix one recent, colour photograph (Stamp Size: 3.5 cms x 2.5 cms) on Form 49A;

b. Any one document listed in Rule 114 must be supplied as proof of ‘Identity’ and ‘Address’; and

c. Designation and code of the concerned Assessing Officer of Income Tax department will have to be mentioned in Form 49A.

*Which documents will serve as proof of ‘Identity’ in case of Individual applicants, including minors and HUF applicants?*

a. Copy of school leaving certificate or matriculation certificate or degree of a recognized educational institution or depository account or credit card or bank account or water bill or ration card or property tax assessment order or passport or voter identity card or driving license or certificate of identity signed by a MP or an MLA or a Municipal Councilor or a Gazetted Officer;

b. In case the PAN applicant is a minor, any of above documents of any of the parents or guardian of such minor shall serve as proof of Identity;

c. In case PAN application is made on behalf of a HUF, any of above documents in respect of Karta of the HUF will serve as proof of Identity.

* What is proof of ‘Address’ for Individual applicants, including minors and HUF applicants?*

a. Copy of electricity bill or telephone bill or depository account or credit card or bank account or ration card or employer certificate or passport or voter identity card or property tax assessment order or driving license or rent receipt or certificate of address signed by a MP/ MLA/Municipal Councilor / a Gazetted Officer;

b. In case the PAN applicant is a minor, any of above documents of any of the parents or guardian of such minor shall serve as proof of Address;

c. In case PAN application is made on behalf of a HUF, any of above documents in respect of Karta of the HUF will serve as proof of Address.

* What documents will serve as proof of Identity and Address for other applicants?*

– Copy of Certificate of Registration issued by the Registrar of Companies or

– Copy of Certificate of Registration issued by the Registrar of Firms or

– Copy of Partnership Deed or

– Copy of Trust deed or

– Copy of Certificate of Registration Number issued by Charity Commissioner or

– Copy of Agreement or Copy of Certificate of Registration Number issued by Charity Commissioner or

– Registrar of Co-operative Society or any other Competent Authority or any other document originating from any Central or State Government Department establishing Identity and Address of such person.

*How to find ‘Assessing Officer code’?*

Assessing Officer code may be obtained from Income Tax Office where you submit your return of income. Applicants who have never filed return of income may find out Assessing Officer code with the help of IT PAN Service Centre or TIN Facilitation Centre or jurisdictional Income Tax Office.

*Is a photograph compulsory for making an application for PAN?*

A photograph is compulsory only in case of ‘Individual’ applicants.

 *What is the procedure for applicants who cannot sign?*

In such cases, Left Hand Thumb impression of the applicant should be affixed on Form 49A or ‘Request For New PAN Card Or/ And Changes In PAN Data’ at the place meant for signatures and got attested by a Magistrate or a Notary Public or a Gazetted Officer, under official seal and stamp.

*Is father’s name compulsory for female (including married/divorced/widow) applicants?*

Only father’s name is required to be filled in the PAN application (Form 49A). Female applicants, irrespective of marital status, should write only father’s name in the PAN application

* Is it compulsory to mention telephone numbers on Form 49A?*

Telephone number is not compulsory, but if provided it may help in faster communication.

*Who can apply on behalf of non-resident, minor, lunatic, idiot, and court of wards?*

Section 160 of IT Act, 1961 provides that a non-resident, a minor, lunatic, idiot, and court of wards and such other persons may be represented through a Representative Assessee. In such cases, application for PAN will be made by the Representative Assessee.

Every person shall quote his permanent account number (PAN) in all documents pertaining to the transactions specified below, namely:

1. sale or purchase of any immovable property valued at five lakh rupees or more;

2. sale or purchase of a motor vehicle or vehicle (excluding two wheeled vehicles, side-car having an extra wheel);

3. a time deposit, exceeding fifty thousand rupees, with a banking company;

4. a deposit, exceeding fifty thousand rupees, in any account with Post Office Savings Bank;

5. opening an account or applying for a credit/debit card with a banking company;

6. making an application for installation of a telephone connection (including a cellular telephone connection);

7. payment in cash for purchase of bank drafts or pay orders or bankers cheques from a banking company for an amount aggregating fifty thousand rupees or more during any one day;

8. deposit in cash aggregating fifty thousand rupees or more, with a banking company during any one day;

9. payment of an amount of fifty thousand rupees or more towards investment in a Mutual Fund/shares of a company/bonds or debentures.

 10. With effect from 1st July, 2011 the following shall also be included:

— Payment to a person authorised in respect of foreign exchange dealings under FEMA.

— Payment of premium on life insurance policy exceeding Rs. 50,000.

— Payment to a dealer exceeding Rs. 5 lakh at a time or for bill of bullion or jewelery of Rs. 5 lakh or more.