Permanent Account Number (PAN)
PAN or Permanent Account Number is used by the Assessing Officer to identify any person. The PAN card is issued by the income tax department of India and it consists of ten alphanumeric character. 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 assesses in the General Index Register maintained by him which also contains the designation and the particulars of the Assessing Officer. As per section 139A of the Act obtaining PAN is a must for the following persons:-
1. 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.
2. Any person who is carry on any business or profession whose total sales, turnover or gross receipts are or is likely to exceed Rs. 5 lacs in any previous year.
3. 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.
Where Should PAN Number be Quoted?
PAN is required to be quoted in all the transactions mentioned below:-
1. 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.
2. Any person who is carry on any business or profession whose total sales, turnover or gross receipts are or is likely to exceed Rs. 5 lacs in any previous year.
3. 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.
Where Should PAN Number be Quoted?
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. (see the sub module on notified transactions where PAN has to be quoted)
Advantages of Permanent Account Number
- PAN number quoted in all documents, makes it 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.
- The Department can exercise greater control over unregulated and undisclosed transactions, if PAN is quoted in all specified transactions,
Know More About PAN
Click for filling the online PAN Card Application
https://tin.tin.nsdl.com/pan/index.html
http://www.incometaxindia.gov.in/PAN/Overview.asp
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