What is PAN ?
This is Permanent Account Number- a unique 10 digit number allotted to each taxpayer for his identification. Section 139A of the I T Act deals with PAN.
Why PAN ?
The govt. wants to track the expenditure ,investments,payments and receipts so as to keep a tab on potential tax evaders. The system is being in put in place that moment you buy or sale or transacted or paid or got receipt of sums above a certain limit the the Assessing Officer of the persons involved in such transaction will be notified automatically. How , simply the system will track through the PAN number of that person and notification to the A.O having jurisdiction over that assesse .
Why should I get a PAN ?
If you want to transact in shares, want to do Term Deposit or Fixed deposit or buy a house or spend on hotel or go to foreign countries having expense above a certain limit or has to fie a Return of Income, a exporter and many other transactions , you need to give your PAN to the person with whom you are transacting. Just think that PAN has become essential for many transactions , without it you may not be able to transact many things.The I T Act has made it mandatory to quote the correct PAN on the return Section 139A(5).
Can I apply online ?
Yes,You can.For online ,click UTISL or NSDL link.
What is offline method?
Download the Form 49A from here. This form duly filled in should be deposted with either UTISL offices which are setup countrywide.
What if there is an error in PAN card ?
This can be rectified if you notify either to the Agency which allotted you PAN or the A.O having jurisdiction over your case. For detailed query pn this subject ,you can click here.
I have got two PAN .What to do ?
Is there any time limit for applying the PAN?
Yes, time limit is as follows :
(ii) Business persons or professionals whose total sales or gross receipts exceeds five lakh rupees
(iii) who is required to furnish a return of income under sub-section (4A) of section 139;
(iv) being an employer, who is required to furnish a return of fringe benefits under Section 115WD
For the (i), time limit is on or before 31st May of the assessment year in which such income is assessable.
For the (ii) and (iii) , on or before the relevant accounting year.
For the (iv), No time limit is prescribed.
Are there any kind of penal provision for not adhering the PAN requirements.
For not adhering to Section 139A , you can be fined upto Rs 10000 by the A.O under section 272B (iv).
For quoting wrong PAN , you can be fined upto Rs 10000 under section 272B (2).
However, rememebr before you are finde , you will be given opprtunity of being heard.
About taxworry
