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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.Check out the following points to know more about PAN.
Who should have the Permanent Account Number
Who should have the Permanent Account Number
As per section 139A of the Act obtaining PAN is a must for the following persons:-
a. 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.
b. Any person who is carry on any business or profession whose total sales, turnover or gross receipts are or is likely to exceed Rs0.5mn in any previous year.
c. 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.
How to obtain PAN
Form No. 49A has been prescribed for making an application for allotment of the PAN. The existing assessees who are already filing their returns of income and who have not been allotted the PAN can attach form No.49A (duly filled in) along with the return of income while filing their return of income with their respective Assessing Officers. However, new assessees whose income is likely to exceed Rs.50,000 (the maximum amount not chargeable to tax for A.Y. 1998-99) can fill up the form and submit it to the "new assessee" circle or ward which has jurisdiction over them. In the cases of persons carrying on business or profession, if the turnover is likely to exceed Rs.5,00,000 in any previous year, the form No.49A should be filled up and presented to the Range/Circle/Ward where the new returns are required to be filed.
How to fill up 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:-
....Date of Incorporation
Unless the form no.49A contains all the above informations it would not be possible to allot the PAN to a company assessee.
....Full and complete name of the
Unless the form No.49A contains all the above information's it would not be possible to allot the PAN to an individual assessee.
Atlast,the form needs to submitted with the photocopy to the Income Tax office. The Photocopy with the office-seal will be returned back to you for your record and the original will be processed.
Usefulness of Permanent Account Number
.....If PAN is quoted in all documents, it
would be very convenient to locate the assessing officer holding
Notified transactions where PAN has to be quoted
Every person shall quote his permanent account number or General Index Register Number in all documents pertaining to the transactions specified below :-
1. Sale or purchase of any immovable property valued at Rupees five lakh or more.
2. Sale or purchase of a motor vehicle or vehicles, which requires registration by a registering authority.
3. 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)
4. A deposit, exceeding fifty thousand rupees, in any account with Post Office Saving Bank
5. 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)
6. 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,)
7. Making an application for installation of a telephone connection (including a cellular telephone connection)
8. 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 (1) to (8) 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.
.......The persons who have agricultural
income and are not in receipt of any other income chargeable to
.......Non-residents referred to in clause (30) of section 2 of Income tax Act, 1961