PAN- A Must for all Financial Transaction- All you Want to Know

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All India UNIQUE 10 Alphanumeric Number allotted by the Income Tax Department.

PERMANENT ACCOUNT NUMBER which does not change with change of address or station or change of Assessing Officer, etc.

How to Apply for PAN ?

♣ Apply only in “Form 49A (in the case of Indian Citizen/Indian Companies/Entities incorporated in India/Unincorporated entities formed in India) or “Form 49AA” (in the case of an individual not being a citizen of India/Entities incorporated outside India/Unincorporated entities formed outside India) which you can download from www.incometaxindia.gov.in  or www.tin-nsdl.com or  https://www.utiitsl.com

♣ Obtain the location of the Centres in any city from the websites of the Income Tax Department or UTIITSL or NSDL

♣ You can apply online through websites of Income Tax Department or UTIITSL or NSDL

♣ You can pay the processing fee by Net-banking or Credit/Debit Card or Cheque or Demand Draft or by Cash (except for online application)

♣ You can also trackstatus of your PAN application online

♣ Mandatory Fields in PAN application form:

• FULL NAME (Initials must be expanded)
• DATE OF BIRTH (in case of individuals)
• DATE OF INCORPORATION or FORMATION, etc. (in case of companies or firms etc.)
• FATHER’S FULL NAME (in case of individuals)
• MARRIED LADY SHOULD GIVE HER FATHER’S FULL NAME WITH EXPANDED INITIALS
• Please attach copies of requisite documents (Proof of Identity, Address and Date of Birth etc.)

Events to be reported to the Assessing Officer

• DEATH of a PAN holder,
• DISCONTINUATION of Business,
• DISSOLUTION of a Firm,
• PARTITION of Hindu Undivided Family (HUF), LIQUIDATION or WINDING UP of a company,
• MERGER or AMALGAMATION or ACQUISITION etc. of companies.

Why Pan?

♠ For payment of Direct Taxes

♠ To file Income Tax Returns

♠ To avoid deduction of tax at higher rate by the Deductors

♠ To enter into specific transactions such as:

(a)    sale or purchase of any immovable property valued at five lakh rupees or more;

(b)  sale or purchase of a motor vehicle or vehicle other than two wheeler;

(c)    payment to hotels and restaurants against their bills for an amount exceeding twenty-five thousand rupees at any one time;

(d)  payment in cash in connection with travel to any foreign country of an amount exceeding twenty-five thousand rupees at any one time;

(e) payment of an amount of fifty thousand or more to RBI for acquiring Bonds;

(f) payment of an amount of fifty thousand or more to Company or Institution for acquiring Bonds or Debentures;

(g) payment of an amount of fifty thousand or more to Company for acquiring Shares;

(h) payment of an amount of fifty thousand or more to Mutual Fund for purchase of its units;

(i) a time deposit, exceeding fifty thousand rupees, with a banking company;

(j) Payment exceeding five lakh rupees for purchase of bullion and jewellery.

(k) other transactions as per Rule 114B.

Forms for applicant of PAN

Know Your PAN

Apply for a fresh PAN in case of :

• PARTITION of a bigger Hindu Undivided Family (HUF) into one or more new Hindu Undivided Families (HUF’s)
• CHANGE IN CONSTITUTION of a firm (entailing change of partners)
• SPLITTING LIP or DEMERGER of an existing company into two or more companies

Reprint of PAN card or Changes? Correction in PAN details

• In case PAN card is wornout or misplaced, apply for a new one with existing PAN by filing FORM titled “Request for New Card or/and Changes or Correction in PAN data”, quoting your existing PAN, along with documentary proof and required
• Above Form can also be used to update or make changes in your PAN data already present with the Income Tax Department (e.g. Name of applicant/father’s name/date of birth/address, etc).

How will PAN be communicated? 

• A letter intimating PAN alongwith PAN card will be sent by the Service Provider.
• If application is incomplete or deficient, a DEFICIENCY  LETTER stating the shortcomings or defects in the application will be sent. PLEASE RESPOND IMMEDIATELY to enable us to allot a PAN.

Can a person hold more than one PAN?

No. A person can have only one PAN. If a PAN has already been allotted, it is illegal to apply and possess another PAN. If you have more than one PAN you are required to intimate the concerned Assessing Officer.

Documents required in respect of Form 49A for Proof of Identity, Address & Date of Birth

Click here for details -> Proof of Identity, Address & Date of birth for PAN/TAN application

DSC Based PAN Application

This is a new facility initiated by the TIN NSDL for time saving and quick filing of Pan application. This facility can be used by PAN applicants having a valid Digital Signature Certificate (DSC) issued to them by authorized Certifying Authority (CA) in India. Only valid class II or III DSC will be accepted.  In case of minor/lunatic/idiot applicants, DSC of the parent/guardian whose details have been furnished as Representative Assessee in the application should be used for digitally signing the application.
For DSC based application, applicant is not required to send any physical document to NSDL e-Gov.

Instant PAN Through Aadhaar Based e-KYC

This facility is for allotment of Instant PAN (on near-real time basis) for those applicants who possess a valid Aadhaar number. PAN is issued in PDF format to applicants, which is free of cost.

The applicant is required to type in her/his valid Aadhaar number and submit the OTP generated on the registered mobile number. Once the process is complete, a 15-digit acknowledgment number is generated. Once request is submitted, the applicant can check the status of the request at any time by providing her/his valid Aadhaar number and on successful allotment can download the PAN. The applicant will also receive a copy of the PAN in the e-mail id registered with the Aadhaar database.

The relevant link is as under: http://www.incometaxindiaefiling.gov.in/e-PAN/index.html?lang=eng

Disclaimer: The contents of this article are for information purposes only and does not constitute advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer to relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up.  The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.

(Republished with Amendments by Team Taxguru