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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:-
- In all returns and in all correspondence with the department.
- In all challans for payment of any tax or sum due to the
department.
- In certain notified transaction. (see the sub module on
notified transactions where PAN has to be quoted)
How to apply for PAN
Application for allotment of
PAN is to be made in Form 49A.
Following points must be noted while filling the above form:-
- Application from must be typewritten or handwritten in black ink
in BLOCK LETTERS.
- Two black & white photographs are to be annexed.
- While selecting the "Address for Communication", due
care should be exercised as all communications thereafter would be
sent ate indicated address.
- In the space given for " Father's Name" , only the
father's name should be given. Married ladies may note that
husband's name is not required and should not be given.
- Due care should be exercised to fill the correct date of birth.
The form should be signed in English or any of the Indian Languages
in the 2 specified places. In case of thumb impressions attestation
by a Gazetted Officer is necessary.
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.
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 :-
- Sale or purchase of any immovable property valued at Rupees five
lakh or more.
- Sale or purchase of a motor vehicle or vehicles, which requires
registration by a registering authority.
- 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)
- A deposit, exceeding fifty thousand rupees, in any account with
Post Office Saving Bank
- 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)
- 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,)
- Making an application for installation of a telephone connection
(including a cellular telephone connection)
- 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
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:-
- 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.
- Non-residents referred to in clause (30) of section 2 of Income
tax Act, 1961
- 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.
