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The Facts About Your Permanant Account Number (PAN)

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
How to Obtain PAN
How to Fill Up Form 49A


Usefulness of Permanent Account Number   
Notified Transactions where PAN has to be Quoted
Persons to whom Provisions of Section 139A shall not apply

 

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. 
... In all challans for payment of any tax or sum due to the department. 
....In certain notified transaction.

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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. 

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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:- 

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.

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.

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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.

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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.

                                                                                                                                                  Top   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

                                                                                         

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