What is pan card ? why should we use this? Why Is It Necessary To Have PAN? Who must have a PAN?

| September 8, 2011 | 0 Comments
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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.

A typical PAN is AABPS1205E.

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 will be mandatory to quote PAN on challans for any payments due to Income Tax Department.

{Section 139A (5) (a) and (b)}

It is also compulsory to quote PAN in all documents pertaining to financial transactions notified from time-to-time by the Central Board of Direct Taxes. Some such transactions are sale and purchase of immovable property or motor vehicle or payments in cash, of amounts exceeding Rs. 25,000/-to hotels and restaurants or in connection with travel to any foreign country. It is also mandatory to mention PAN for obtaining a telephone or cellular telephone connection. Likewise, PAN has to be mentioned for making a time deposit exceeding Rs. 50,000/- with a Bank or Post Office or depositing cash of Rs. 50,000/- or more in a Bank.

{Section 139A (5) (c) read with Rule 114B}

Who must have a PAN?

  1.  All existing assesses or taxpayers or persons who are required to furnish a return of income, even on behalf of others, must obtain PAN.
    {Section 139A (1) and (1A)}
  2.  Any person, who intends to enter into financial transaction where quoting PAN is mandatory, must also obtain PAN.
    { Section 139A (5) (c) read with Rule 114B}
  3. The Assessing Officer may allot PAN to any person either on his own or on a specific request from such person.
    {Section 139A (2) and (3)}

Related posts:

  1. How to get Aadhaar card? Process of Aadhaar card Registration, Enrollment of Aadhaar Number, UID Card
  2. What is PAN Number? What does a PAN Card contain? What is a PAN Number and Why is it Mandatory?
  3. What is Aadhaar card? and Aadhaar card Benefits and Advantages
  4. Online Aadhaar card status, How to check Aadhaar card status, Unique Identification Number (UID) status

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