What is PAN & how do I get a PAN
What is PAN ?
Permanent Account Number (PAN) is a 10-digit alphanumeric number, issued in the form of a laminated card, by the Income-tax (IT) Department.
The IT department has authorized UTI Investor Services Ltd (UTIISL) to set up and manage IT PAN Service Centres and National Securities Depository Limited (NSDL) to dispense PAN services from TIN Facilitation Centres.
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.
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.
How do I get a PAN ?
1) A PAN application (Form 49A) can be downloaded from the website of IT department/UTIISL or NSDL or designated centres or any other source (www.incometaxindia.gov.in, www.utiisl.co.in or tin.nsdl.com).
2) Fill form, affix a recent, coloured photograph and attach one document as proof of Identity and Address (ration card, school leaving certificate, depository account, credit card, voter identity card, driving license, copy of electricity/ telephone bill, etc.).
3) Write the designation and code of your Assessing Officer of Income-tax department on form (applicants who have never filed return of income may take assistance of designated centres to get required information).
4) Submit form to a designated centre, which will issue an acknowledgement slip.
5) After obtaining PAN from the Income-tax department, the designated centre will print the PAN card and deliver it to you.
For more info please go to http://www.incometaxindia.gov.in/PAN/Overview.asp