GST

PAN in Income Tax in India

A Permanent Account Number is required to be obtained by every person mentioned below:

  • A person whose total income under the Act exceeds the maximum amount not chargeable to tax
  • A person whose Total sales, turnover or gross receipts is likely to exceed Rs. 5,00,000/-
  • A person who is required to furnish return of income on account of receipt of income under trust or other legal obligation for charitable or religious trust.

PAN under the new series

It is an all India, UNIQUE Number of 10 CHARACTERS, allotted by the Income Tax Deptt.

It is PERMANENT for your life and will not change even with a change of address or station or change of your Assessing Officer, etc.

PAN under the new series is being issued to replace old PAN or GIR No.

Who must apply for PAN?

  • Individuals
  • Hindu Undivided Families
  • Companies
  • Partnership Firms
  • Association of Persons
  • Body of individuals
  • Trusts
  • Artificial Juridical Persons (is this a word?)
  • Representative Assessees

You need a PAN if you are:

  • an Income Tax Payer.
  • carrying on a business or profession whose total sales or turnover or gross receipt exceeds Rs.5 lakhs.
  • a trust.
  • an exporter or importer under the Customs Act ,1962.
  • an assessee under Central Excise Act.
  • a person who issue invoices and requires registration under the Central Excise Rules or an assessee under the service tax.

How will the PAN under the new series be communicated?

A letter, intimating your PAN under the new series, will be sent either by the Officer-in-charge of the Computer Centre or your Assessing Officer.

If your application is incomplete or deficient, you will receive a DEFICIENCY LETTER or an INTIMATION CUM DEFICIENCY LETTER, stating the shortcomings or defects in your application. PLEASE RESPOND IMMEDIATELY to enable us to follow up.

YOU WILL BE GIVEN A LAMINATED PAN CARD, WHICH WILL CONTAIN the following:

For Individuals:

  • PAN
  • Name
  • Date of Birth
  • Father's Name
  • Photograph and
  • Signature of PAN Holder

For other Tax payers:

  • PAN
  • Name and
    • Date of Incorporation or Formation

    How To Apply For PAN?

    A PAN can be applied for in Form No. 49A by every person who is liable to obtain the said Number. The details to be furnished are given below:

    Name of the assessee

    Residential address in case of individual

    Office address along with the address of branches, if any

    Nature of Business: It is advisable to file the copy of agreement of partnership deed or memorandum of association in case of Company along with the Application form Name and address of all partners/directors/members of AOP, etc.

    Name of the person whose income is included in the income of the assessee

    Old GIR/PAN., already allotted.

    Mandatory quoting of PAN:

    Every person to whom a PAN is allotted is required to quote the same in:

    • all his returns to, and/or correspondence with, any Income Tax Authority;
    • all challans for payment of direct taxes;
    • application for opening an account with a bank;
    • application for installation of a telephone connection (including a cellular telephone);
    • documents pertaining to sale or purchase of a motor vehicle;
    • documents pertaining to sale or purchase of immovable property valued at Rs.5 lakhs or more;
    • documents pertaining to a time deposit exceeding Rs.50,000 with a Bank;
    • documents pertaining to deposits exceeding Rs.50,000/- in any account with a Post Office Savings Bank;
    • documents pertaining to a contract of a value exceeding Rs.10 lakhs for sale or purchase of securities (shares, debentures etc.);
    • payment to hotel & restaurants against their bills for an amount exceeding Rs.25.000/- at anyone time;

    Every person receiving any sum or income or amount from which tax has been deducted under the provisions of chapter XVII-B (relating to TDS -Section 192 to 197), shall intimate his PA. to the person responsible for deducting such tax.

    Every buyer referred to in section 206C ( for tax collected at source) shall intimate his PAN to the seller referred to in that seller.

    If tax is being deducted at source on payment of salary, rent, interest etc., it will be in your interest to give your PAN under the new series to the tax deductor so that the same could be mentioned in the TDS Certificate and Annual Return of TDS. This will help you in getting credit for taxes deducted at source.

    Rights, duties and obligations of PAN Holder

    If PAN under new series has not been allotted:

    A person can quote his General Index Register Number (GIR No.) till the PAN under the new series is allotted to him.

    In case of opening a Bank Account in the name of a minor who does not have any taxable income, the Permanent Account Number under the new series or GIR No. of his father or mother or guardian may be quoted. Any person, who has not been allotted a Permanent Account Number or who does not have GIR No. and who makes payment in cash or otherwise than by crossed cheque drawn on a Bank or through a credit card issued by a Bank, is required to file a declaration in form No.60.

    The following persons are not required to obtain a PAN:

    Persons, who have agricultural income and not any other taxable income. They should, however, file a declaration in Form No.61 in respect of transactions referred to at (3) to (10) above.
    • Non-residents.
    • Central Govt., State Govts. and Consular Officers in transactions in which they are the payers

    You must intimate your Assessing Officer about any change in:

    • NAME on the basis of which the Permanent Account Number (PAN) was allotted 
    • ADDRESS 
    • NATURE OF THE BUSINESS
    • The Assessing Officer must be informed of the following:
    • DEATH of a PAN holder 
    • DISCONTINUATION OF BUSINESS 
    • DISSOLUTION of a firm 
    • PARTITION of a Hindu Undivided Family (HUF) 
    • LIQUIDATION or WINDING UP of a company 
    • MERGER or AMALGAMATION or ACQUISITION etc. of companies.
    A fresh Pan must be applied for in the following cases:

    PARTITION of a bigger Hindu Undivided Family (HUF) into one or more new Hindu Undivided Families (HUF's) 
    Coming into being of a new HINDU UNDIVIDED FAMILY (HUF) 
    CHANGE IN CONSTITUTION of a firm (entailing change of partners) 
    SPLITTING UP or DEMERGER of an existing company into two or more companies 
    WHEN YOU MOVE FROM ONE CITY OR STATE TO ANOTHER:- (You need not apply for a fresh PAN under the new series. You must, however, intimate your Assessing Officer for transfer of your PAN and other records to your new Assessing Officer.)