All about PAN

Update:

The last date for linking your Aadhaar card to your pan card has been extended to September 30,2021 by the Central Board of Direct Taxes(CBDT). To read the official announcement, click here.

Note: For linking the Aadhar Card to the Pan Card, a user must make sure that the Name, Gender and Date of Birth is the same in both the Aadhar and Pan Card. One more way for linking the Aadhar Card with the Pan Card is via SMS. The SMS needs to be sent to 56161 or 567678 by your registered mobile number. .

Greetings of the day to all the members of CCI Family.

Today I will be discussing something really important yet simple. But I guess many of us lack knowledge in this area i.e. “How to apply for PAN (Permanent Account Number)”

In this article I would be discussing on the following –

a. Basics about PAN

b. Why it is necessary to have PAN?

c. How to know your PAN?

d. How to apply for PAN online?

e. Other relevant things

So let’s start with it:

Basics about PAN –

a. Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department, to any "person" who applies for it or to whom the department allots the number without an application.

b. PAN enables the department to link all transactions of the "person" with the department. These transactions include tax payments, TDS/TCS credits, returns of income/wealth/gift/FBT, specified transactions, correspondence, and so on. PAN, thus, acts as an identifier for the "person" with the tax department.

Why it is necessary to have PAN?

a. It is mandatory to quote PAN on Return of Income

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

c. sale or purchase of a motor vehicle or vehicle, [the sale or purchase of a motor vehicle or vehicle does not include two wheeled vehicles, inclusive of any detachable side-car having an extra wheel, attached to the motor vehicle;]

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

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

f. contract of a value exceeding one lakh rupees for sale or purchase of securities;

g. opening a bank account;

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

How to know your PAN?

- Visit “ https://incometaxindiaefiling.gov.in/e-Filing/Services/KnowYourPanLink.html”

- You have to give details like Surname, Date of Birth, etc.

- You can see your PAN.

How to apply for PAN online?

a. Online application can be made either through the portal of NSDL

(http://tin.tin.nsdl.com/pan/index.html) or portal of UTITSL (http://www.utitsl.co.in/utitsl/uti/newapp/newpanapplication.jsp).

b. The charges for applying for PAN online have been increased w.e.f. 16/1/2014 to “Rs. 105” (including service tax) for Indian communication address and “Rs. 971” (including service tax) for foreigners.

c. Once the application and payment is accepted, the applicant is required to send the supporting documents through courier/post to NSDL/UTITSL. Only after the receipt of the documents, PAN application would be processed by NSDL/UTITSL.

d. The acknowledgement duly signed, affixed with photograph (in case of 'Individuals') along with Demand Draft, if any, and proof of identity (name in the application should be same as in the proof of identity), proof of address (Individuals, HUFs, Body of Individuals, Association of Persons & Artificial Juridical Person should provide proof of address of residence stated in the application) and proof of date of birth (applicable for Individuals & Karta of HUF) as specified in the application form is to be sent to NSDL at 'Income Tax PAN Services Unit, NSDL e-Governance Infrastructure Limited, 5th floor, Mantri Sterling, Plot No. 341, Survey No. 997/8, Model Colony, Near Deep Bungalow Chowk, Pune - 411016'.

Documents Required –

a. Aadhaar Card issued by the Unique Identification Authority of India; or

b. Elector's photo identity card; or

c. Driving License; or

d. Passport; or

e. Ration card having photograph of the applicant; or

f. Arm's license; or

g. Photo identity card issued by the Central Government or State Government or Public Sector Undertaking; or

h. Pensioner card having photograph of the applicant; or

i. Central Government Health Service Scheme Card or Ex-Servicemen Contributory Health Scheme photo card.

Other relevant things –

a. The acknowledgement needs to be submitted according to the Assessing officer or the jurisdiction of the person.