|
|
What
is Permanent Account Number
Permanent
Account Number is a number by which the Assessing Officer can identify
any person. Presently the Income Tax Department is allotting PAN under
the New Series to all assessees which consists of ten alphanumeric character
and is issued in the form of a laminated card. 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 assessees 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.
- 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)
How
to obtain PAN ?
Form
no.49A
has been prescribed for making an application for allotment of the PAN.
The existing assessees who are already filing their returns of income
and who have not been allotted the PAN can attach form No.49A(duly filled
in) along with the return of income while filing their return of income
with their respective Assessing Officers. However, new assessees whose
income is likely to exceed Rs.50,000/- (the maximum amount not chargeable
to tax for A.Y. 1998-99) can fill up the form and submit it to the "new
assessee" circle or ward which has jurisdiction over them. In the
cases of persons carrying on business or profession, if the turnover is
likely to exceed Rs.5,00,000/-(Rs. five hundred thousand) in any previous
year, the form No.49A should be filled up and presented to the Range/Circle/Ward
where the new returns are required to be filed.
Tips
for filling form 49A
The form
should be filled in carefully and completely since it may not be possible
for the Department to allot PAN if all the details are not filled in.
In any case the following information must necessarily be given:-
In the
case of companies, the information that is necessarily required is as
under:
- Date of
Incorporation
- Registration
Number.
- Date of
commencement of the business
- Full and
complete names of atleast two directors of the company
- Branch
addresses and branch names of the company.
Unless the
form no.49A contains all the above informations it would not be possible
to allot the PAN to a company assessee.
In the
case of individuals, the information that is necessarily required is as
under:
- Full and
complete name of the assessee
- Full and
complete name of his/her Father.
- Date of
birth
- Sources
of income
Unless the
form no.49A contains all the above information's it would not be possible
to allot the PAN to an individual assessee.
Usefulness
of Permanent Account Number
- If PAN
is quoted in all documents, it would be very 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.
- If PAN
is quoted in all specified transactions, the Department can excercise
greater control over unregulated and undisclosed transactions.
Notified
transactions where PAN has to be quoted
[Provisions
of Section 139A(5)]
Every person
shall quote his permanent account number or General Index Register Number
in all documents pertaining to the transactions specified below :-
- Sale
or purchase of any immovable property valued at Rupees five lakh or
more.
- Sale or
purchase of a motor vehicle or vehicles, which requires registration
by a registering authority.
- A time
deposit, exceeding fifty thousand rupees, with a banking company to
which the Banking Regulation Act, 1949 applies (including any bank or
banking institution referred to in section 51 of that Act)
- A deposit,
exceeding fifty thousand rupees, in any account with Post Office Saving
Bank
- A contract
of a value exceeding ten lakh rupees, for sale or purchase of securities
as defined in clause (h) of section 2 of the Securities Contracts (Regulation)
Act, 1956 (42 of 1956)
- Opening
an account with a banking company to which the Banking Regulation Act,
1949 applies (including any bank or banking institution referred to
in section 51 of that Act,)
- Making
an application for installation of a telephone connection (including
a cellular telephone connection)
- Payment
to hotels and restaurants against their bills for an amount exceeding
twenty five thousand rupees at any one time.
- A person
shall quote General Index Register Number in the documents pertaining
to transactions specified in above clauses (a) to (h) till such time
the permanent account number is allotted to him;
- A person,
being a minor and who does not have any income chargeable to income
tax, making an application for opening an account referred to in the
clause (f) of this rule, shall quote the permanent account number or
General Index Register Number of his father or mother or guardian, as
the case may be.
- Any person,
who has not been allotted a permanent account number or who does not
have a General Index Register Number and who makes payment in cash or
otherwise than by a crossed cheque drawn on a bank or by a crossed bank
draft in respect of any transaction specified in clauses (a) to (h)
, shall have to make a declaration in Form No. 60 giving therein the
particulars of such transaction.
In simple
terms :
IT IS MANDATORY
TO QUOTE PAN in
- 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
lakh or more
- 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 hotels & restaurants against their bills for an amount exceeding
Rs. 25,000 at any one time
- Returns
of income
- Challans
for payment of direct taxes
- All correspondence
with Income-Tax Department
IF YOU HAVE
APPLIED FOR ALLOTMENT OF PERMANENT ACCOUNT NUMBER (PAN) UNDER THE NEW
SERIES AND HAVE RECEIVED A LETTER ASKING FOR FURTHER INFORMATION, THEN
PLEASE SEND YOUR REPLY IMMEDIATELY
- INDIVIDUALS
SHOULD GIVE THEIR, AS WELL AS THEIR FATHER'S FULL NAME (EXPAND INITIALS).
- MARRIED
LADIES SHOULD GIVE THEIR FATHER'S NAME IN FULL (AND NOT HUSBAND'S NAME)
- EXACT
DATE OF BIRTH/ INCORPORATION (NOT MERELY MONTH OR YEAR) SHOULD BE SPECIFIED.
- GIVE PIN
CODE IN ALL YOUR ADDRESSES.
FAILURE TO
COMPLY WITH THE PROVISIONS OF SECTION 139A OF THE INCOME-TAX ACT ATTRACTS
PENALTY OF RS. 500/- (MINIMUM) TO RS. 10,000 (MAXIMUM) FOR EACH DEFAULT
OR FAILURE
Persons
to whom provisions of section 139A shall not apply
The provisions
of section 139A shall not apply to following class or classes of persons,
namely:-
- The persons
who have agricultural income and are not in receipt of any other income
chargeable to income-tax. Such persons shall instead be required to
make a declaration in Form No. 61 in respect of transactions referred
to in clauses (a) to (h) of rule 114B of Income Tax Rules.
- Non-residents
referred to in clause (30) of section 2 of Income tax Act, 1961
- A non
resident, who enters into any transaction referred to in clauses (a)
to (h) of rule 114B, shall have to furnish a copy of his passport.
Obligation
of the authorities
- Any Authority
on receiving any document for purchase or sale of any immovable property
or a motor vehicle and on receiving any document relating to a transaction
specified under clauses (a) to (h) of sub-rule (i) of rule 114B of Income
Tax Rules shall ensure that Permanent Account Number or the General
Index Register Number has been duly quoted in the document or declaration
in Form No. 60 or Form No. 61, as the case may be.The specified Authorities
are:-
- A
registering officer appointed under the Registration Act, 1908 (16
of 1908).
- A
registering authority referred to in clause (b) of sub-rule (1).
- Any
manager or officer of a banking company referred to in clause (c)
of sub rule (1).
- Post
Master.
- Stock
broker, sub broker, share transfer agent, banker to an issue, trustee
of a trust deed, registrar to an issue, merchant banker, under writer,
portfolio manager, investment adviser and such other intermediaries
registered under section 12 of the Securities and exchange Board
of India Act, 1992 (15 of 1992).
- Any
authority or company receiving application for installation of a
telephone by it.
- Any
person raising bills referred to in clause (h) of sub-rule (i).
- Such authority
shall intimate the details of transactions to the Director of Income
Tax(Investigation) and shall forward the following documents.
- A
statement indicating therein the details of all the documents pertaining
to any transaction refered to in clauses (a) to (h) of rule 114B
of Income Tax Rules wherein the permanent account number General
Index Register Number is quoted.
- The
statement referred to in clause (a) shall contain.
- Name
and address of the person entering into the transactions.
- Nature
and date of the transaction.
- Amount
of each transaction.
- Permanent
account number or General Index Register Number quoted in the
documents pertaining to any transaction.
- Copies
of declaration in Form No. 60.
- Copies
of declaration in Form No. 61
- Copies
of passport.
The
statement, declaration and copies of passports shall be forwarded
to the concerned Director of Income-tax (Investigation) by every
person within one month of receipt of the same by such person
|
