What is a Permanent Account Number or PAN? how to apply.

A Permanent Account Number or PAN is a ten digit descriptive number (eg, ASSPS7219J) issued across India as a laminated card by the Income Tax Department. It does not change with the address or location change where you are being scheduled. The Income Tax Department has authorized the following to obtain PAN information: -

(A) Service Ltd. (UTITSL) to set up and manage an IT PAN Service Center in all cities and towns where there is an income tax office and

(B) To provide PAN services from National Securities Depository Limited (NSDL) Tax Information Network (TIN) Facilitation Centers.

Who can apply for PAN?

The Income Tax Act provides that every person whose total income is more than the maximum amount that is not taxed or every person who does any business or is engaged in business, whose total income, profit or gross receipts is earlier  Exceeding Rs. 5 lakhs in the previous year or any person who is required to file income statement will apply for PAN. 

Apart from this, any person who does not fulfill the above conditions can also apply for PAN allotment.

With effect from 1.6.2000, the Central Government shall by notification specify any class or category of persons, including the importer and exporter, whether any tax is paid by them or otherwise, that person may also apply for PAN allotment to the Assessing Officer. 

PAN has also been allotted for the person who is responsible to file the return for the benefits wef 1.4.2006. He does not need to get another PAN.

Since the income of a financial year is taxed in a subsequent year called the assessment year, an application for PAN should be made before 30th June of the respective assessment year.

How to apply for PAN?

Application for allotment of PAN is to be made in Form 49A. While filling this form, the following things have to be kept in mind: -

• The application form is typed or handwritten, it should be in capital letters in black ink

• Two black and white photos are attached.

• Special attention should be given when the address for the contact is selected as the contact will then be sent to the specified address.

• Only the father's name is given in the space given for 'Father's name'. The married woman does not require the husband's name to take care of it.

• Special attention should be paid to filling the correct date of birth.

• The form must be signed in English or in two specific places in any Indian language. Attestation by a gazetted officer is mandatory in the case of a thumb.

Certain transactions in which PAN is mandatory to be mentioned

• Purchase and sale of real estate

• Buying and selling of motor vehicles

• Transactions in more than 50,000 shares

• New bank account opening

• Fixed deposit above Rs 50,000

• Application for allotment of telephone connection

• Payment to hotels over Rs 25,000

• Provided that by the time the PAN is allotted to the person, he may indicate his general index registration number or GIR number,

• To apply for a credit or debit card to any banking company,

• To open a demat account,

• In a financial year of LIC premium Rs.  Over 50,000 payments,

• If the sale / purchase of unlisted shares by a person is more than 1 lakh per transaction.

Notice of changes

The following changes should be reported to the Assessing Officer.

• Death of assessee

• Trade off

• Breach of firm

• Division of Hindu Undivided Family (HUF)

• Winding up or closing a company

• Merger, conference or acquisition of company

Application for new PAN under new series

The application for new PAN under the new series can be made under the following circumstances.

• Segmentation of undivided Hindu family (HUF) into one or more undivided families
• New undivided Hindu family (HUF) comes into existence
• Changes in the constitution of the firm (change in partners)
• Existing company split into two or more companies

Various Info Conclusion

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