About PAN CARD
WHAT IS PAN?
A typical PAN is AFZPK7190K.
First three characters i.e. "AFZ" in the above PAN are alphabetic series running from
AAA to ZZZ
Fourth character of PAN i.e. "P" in the above PAN represents the status of the PAN holder. "P" stands for Individual, "F" stands for Firm, "C" stands for Company, "H" stands for HUF, "A" stands for AOP, "T" stands for TRUST etc.
Fifth character i.e. "K" in the above PAN represents first character of the PAN
holder's last name/surname.
Next four characters i.e. "7190" in the above PAN are sequential number running from 0001 to 9999.
Last character i.e. "K" in the above PAN is an alphabetic check digit.
WHY IS IT NECESSARY TO HAVE PAN?
It is mandatory to quote PAN on return of income, all correspondence with any income tax authority. From 1 January 2005 it has become mandatory to quote PAN on challans for any payments due to Income Tax Department.
It is also compulsory to quote PAN in all documents pertaining to the following financial transactions :-
(a) sale or purchase of any immovable property valued at five lakh rupees or more;
(b) 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;]
(c) a time deposit, exceeding fifty thousand rupees, with a banking company ;
(d) a deposit, exceeding fifty thousand rupees, in any account with Post Office Savings Bank;
(e) a contract of a value exceeding one lakh rupees for sale or purchase of securities;
(f) opening a bank account;
(g) making an application for installation of a telephone connection (including a cellular telephone connection);
(h) payment to hotels and restaurants against their bills for an amount exceeding twenty-five thousand rupees at any one time ;
(i) payment in cash for purchase of bank drafts or pay orders or banker's cheques for an amount aggregating fifty thousand rupees or more during any one day;
(j) deposit in cash aggregating fifty thousand rupees or more with a bank during any one day;
(k) payment in cash in connection with travel to any foreign country of an amount exceeding twenty-five thousand rupees at any one time.
(l) making an application for issue of credit card or debit card.
(m) payment of an amount of fifty thousand rupees or more to a Mutual Fund for purchase of its units;
(n) payment of an amount of fifty thousand rupees or more to a company for acquiring shares issued by it;
(o) payment of an amount of fifty thousand rupees or more to a company or an institution for acquiring debentures or bonds issued by it;
(p) payment of an amount of fifty thousand rupees or more to the Reserve Bank of India
(q) payment of an amount aggregating fifty thousand rupees or more in a year as life insurance premium to an insurer
(r) payment to a dealer,—
(i) of an amount of five lakh rupees or more at any one time; or
(ii) against, a bill for an amount of five lakh rupees or more,
for purchase of bullion or jewellery
PAN – LEGAL FRAMEWORK
The legal authority for allotment and use of the new series of PAN is derived from Section 139A of the Income-tax Act, 1961. This section lays down the framework for PAN, e.g, who is required to apply for PAN, who else can apply for PAN, who will allot PAN, transactions where PAN is required to be quoted, use of PAN in TDS certificates and TDS returns, that one person can have only one PAN and the manner of applying for PAN.
The manner of applying for PAN is laid down in Rule 114 of the Income-tax Rules, 1962. This rule, amended in 2011, also specifies the copies of documents required to be submitted along with the PAN application (in form 49A or 49AA, as the case may be) as proof of identity and address of the PAN applicant.
Rule 114B lists down the documents in which PAN is required to be quoted while entering into specified transactions/activities. Persons who do not have PAN are exempted from quoting PAN on furnishing a declaration in Form 60. Rule 114C lists the persons to whom section 139A does not apply. These are persons who have agricultural income by furnishing declaration in Form 61, non-residents, and Central Govt./State Govt. and Consular offices, where they are payers.
Penalty of Rs.10,000/- is imposable u/s 272B for failure to comply with the provisions of section 139A.
WHAT IS PAN?
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.
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.
PAN was introduced to facilitates linking of various documents, including payment of taxes, assessment, tax demand, tax arrears etc. relating to an assessee, to facilitate easy retrieval of information and to facilitate matching of information relating to investment, raising of loans and other business activities of taxpayers collected through various sources, both internal as well as external, for detecting and combating tax evasion and widening of tax base.
A typical PAN is AFZPK7190K.
First three characters i.e. "AFZ" in the above PAN are alphabetic series running from
AAA to ZZZ
Fourth character of PAN i.e. "P" in the above PAN represents the status of the PAN holder. "P" stands for Individual, "F" stands for Firm, "C" stands for Company, "H" stands for HUF, "A" stands for AOP, "T" stands for TRUST etc.
Fifth character i.e. "K" in the above PAN represents first character of the PAN
holder's last name/surname.
Next four characters i.e. "7190" in the above PAN are sequential number running from 0001 to 9999.
Last character i.e. "K" in the above PAN is an alphabetic check digit.
WHY IS IT NECESSARY TO HAVE PAN?
It is mandatory to quote PAN on return of income, all correspondence with any income tax authority. From 1 January 2005 it has become mandatory to quote PAN on challans for any payments due to Income Tax Department.
It is also compulsory to quote PAN in all documents pertaining to the following financial transactions :-
(a) sale or purchase of any immovable property valued at five lakh rupees or more;
(b) 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;]
(c) a time deposit, exceeding fifty thousand rupees, with a banking company ;
(d) a deposit, exceeding fifty thousand rupees, in any account with Post Office Savings Bank;
(e) a contract of a value exceeding one lakh rupees for sale or purchase of securities;
(f) opening a bank account;
(g) making an application for installation of a telephone connection (including a cellular telephone connection);
(h) payment to hotels and restaurants against their bills for an amount exceeding twenty-five thousand rupees at any one time ;
(i) payment in cash for purchase of bank drafts or pay orders or banker's cheques for an amount aggregating fifty thousand rupees or more during any one day;
(j) deposit in cash aggregating fifty thousand rupees or more with a bank during any one day;
(k) payment in cash in connection with travel to any foreign country of an amount exceeding twenty-five thousand rupees at any one time.
(l) making an application for issue of credit card or debit card.
(m) payment of an amount of fifty thousand rupees or more to a Mutual Fund for purchase of its units;
(n) payment of an amount of fifty thousand rupees or more to a company for acquiring shares issued by it;
(o) payment of an amount of fifty thousand rupees or more to a company or an institution for acquiring debentures or bonds issued by it;
(p) payment of an amount of fifty thousand rupees or more to the Reserve Bank of India
(q) payment of an amount aggregating fifty thousand rupees or more in a year as life insurance premium to an insurer
(r) payment to a dealer,—
(i) of an amount of five lakh rupees or more at any one time; or
(ii) against, a bill for an amount of five lakh rupees or more,
for purchase of bullion or jewellery
PAN – LEGAL FRAMEWORK
The legal authority for allotment and use of the new series of PAN is derived from Section 139A of the Income-tax Act, 1961. This section lays down the framework for PAN, e.g, who is required to apply for PAN, who else can apply for PAN, who will allot PAN, transactions where PAN is required to be quoted, use of PAN in TDS certificates and TDS returns, that one person can have only one PAN and the manner of applying for PAN.
The manner of applying for PAN is laid down in Rule 114 of the Income-tax Rules, 1962. This rule, amended in 2011, also specifies the copies of documents required to be submitted along with the PAN application (in form 49A or 49AA, as the case may be) as proof of identity and address of the PAN applicant.
Rule 114B lists down the documents in which PAN is required to be quoted while entering into specified transactions/activities. Persons who do not have PAN are exempted from quoting PAN on furnishing a declaration in Form 60. Rule 114C lists the persons to whom section 139A does not apply. These are persons who have agricultural income by furnishing declaration in Form 61, non-residents, and Central Govt./State Govt. and Consular offices, where they are payers.
Penalty of Rs.10,000/- is imposable u/s 272B for failure to comply with the provisions of section 139A.
How to apply for PAN?
Forms
Document Required for PAN Application - Read more
Status of PAN
Online PAN Verification
By using the Online PAN Verification facility, one can know/verify the Permanent Account Number (PAN). This facility is referred to as "PAN Verification" or "Know Your PAN".. Read more
PAN Grievances
Income-tax department has an electronic portal for lodging PAN Grievances through Aayakar Sampark Kendra.. Read more
Know Your Assessing Officer - Read more
Your Queries on PAN
What is the validity of PAN?
- PAN obtained once is valid for life-time of the PAN-holder throughout India. It is not affected by change of address or change of Assessing Officer etc. However, any change in the PAN database (i.e. details provided at the time of obtaining PAN) should be intimated to the Income Tax Department by furnishing the details in the form for “Request For New PAN Card Or/ And Changes or Correction in PAN Data”.
A person cannot hold more than one PAN. If a PAN is allotted to a person, then he cannot apply for obtaining another PAN. A penalty of Rs. 10,000/- is liable to be imposed under Section 272B of the Income-tax Act, 1961 for having more than one PAN.
If a person has been allotted more than one PAN then he should immediately surrender the additional PAN card(s).
Should I intimate my PAN to deductor ? - Yes, you should intimate your PAN to the deductor i.e. person deducting tax. From 1st April, 2010, non-furnishing of PAN to deductors results in TDS at much higher rate of 20% or even more.
Return is to be filed only if you are liable to file return of income under section 139.
It is not mandatory to file return of income after getting PAN.
Tutorial on Permanent Account Number - Read More
In case any one lost his PAN card than it is must for him to get the other duplicate PAN card as earliest possible. Due to lost of PAN card your all the financial transactions will get disturbed or get delayed. It is the matter of knowledge that one can not even get a new land line phone in absence of the pan card.
It is the general behavior of the officials of the government that they behave rudely if one wants to get even a single document. But with the commencement of the cyber age many things have been progressed very fast. Nowadays the process of getting duplicate PAN card is very convenient and easy if any one lost it.
The Procedure is as Follows:
There are the two designated bodies of the government on whose websites that are dealing with all the matters regarding the PAN cards, you can visit these websites. These two bodies are UTIISL and other is NSDL. The other easy way is to contact with a broker who is authorized by the government or can go to agency such as www.PanCardNri.com.
On the webpage of these sites you will get two buttons one is for applying new PAN card and the other one is for applying duplicate PAN card and you have to push the latter.
The form (49A) is to be filled over there for applying for the duplicate PAN card as it was filled in case of original PAN card. You have to enter the same details as entered previously.
In case of applying the duplicate PAN card you have to disclose the PAN number. This number is very easy to access as it is always mentioned in your all financial transaction papers. One can find this number over the income tax return; demat account, on the original PAN card’s covering letter etc. In any case if you are unable to access your PAN number than in that case you must visit the link http://pancardfornris.blogspot.in/2012/04/know-your-pan.html.
After submitting all the necessary details in this form and paying the fees of Rs.94.00 the duplicate PAN card get delivered to you door step within 7-10 days.
Few points to Remember:
In case of the lost of the PAN card you have to lodge FIR to the police station of your area and receive the copy of that FIR. This FIR can be used for further future references.
In case of NRI, the duplicate PAN card can be applied by online way by process as described above. The charges online are Rs. 717.00 and the payment will be done by using credit card.
The delivery of the PAN card will be at the door steps in the foreign country within a single day and hence the extra charge is being taken.
Status check PAN Card:
https://tin.tin.nsdl.com/pantan/StatusTrack.html
Few useful links to get lost PAN Card Back:
https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html
Status check PAN Card:
https://tin.tin.nsdl.com/pantan/StatusTrack.html
Few useful links to get lost PAN Card Back:
https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html
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