A Permanent Account Number (PAN) is one of the most important documents in the country today. It is an identification number which the Income Tax Department gives to all taxpayers.
You need to quote the PAN for all financial transactions like opening a bank account, buying a property of a car, buying or selling shares or mutual funds, applying for a visa/passport, making payment of income tax or filing your tax return, applying for a bank loan, etc.
Here are some frequently asked questions and answers related to PAN:
1. What is PAN?
Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department.
A typical PAN is AABPS1205E.
2. 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 January 1, 2005, it has been made 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.
It has also been made mandatory from march 2, 2007 to quote the PAN for mutual fund investments worth over Rs 50,000.
3. How does Income Tax Department ensure that PAN is quoted on transactions mentioned above?
It is statutory responsibility of a person receiving document relating to economic or financial transactions notified by the CBDT to ensure that PAN has been duly quoted in the document.
4. Is it compulsory to quote PAN on return of income?
Yes, it is compulsory to quote PAN on return of income.
5. How will these authorities verify PAN?
A facility for verifying PAN is available on the website of the Income Tax department.
6. Who must have a PAN?
7. Can a person obtain or use more than one PAN?
Obtaining or possessing more than one PAN is against the law.
8. Where to apply for PAN?
In order to improve PAN related services, the Income Tax department has authorized UTI Investor Services Ltd (UTIISL) to set up and manage IT PAN service centres in all cities or towns where there is an Income Tax office and National Securities Depository Limited (NSDL) to dispense PAN services from TIN (tax information network) facilitation centres.
For the convenience of PAN applicants in big cities, UTIISL has set up more than one IT PAN service centre and likewise there are more than one TIN facilitation centre.
9. How to apply for a PAN? Can an application for PAN be made on plain paper?
PAN application should be made only on Form 49A. A PAN application (Form 49A) can be downloaded from the website of Income Tax department or UTIISL or NSDL (www.incometaxindia.gov.in,www.utiisl.co.in or tin.nsdl.com) or printed by local printers or photocopied (on A4 size 70 GSM paper) or obtained from any other source. The form is also available at IT PAN Service centres and TIN Facilitation centres.
10. Can an application for PAN be made in Form 49A obtained from anywhere?
Yes, PAN application may be made on Form 49A obtained from any source other than IT PAN Service Centres or TIN Facilitation Centres. For instance, a PAN application may be made on form downloaded from the website of Income Tax department or UTIISL or NSDL; or on form printed by local printers or a photocopy of downloaded or printed form.
11. Can an application for PAN be made through Internet?
Yes, application for fresh allotment of PAN can be made through Internet. Further, requests for changes or correction in PAN data or request for new PAN card (for an existing PAN) may also be made through Internet. For more details visit (www.tin-nsdl.com)
12. How do I get a PAN allotted quickly (Tatkal)?
If an application for allotment of PAN is submitted through Internet and payment made through a 'nominated' credit card, the PAN is allotted on priority and communicated through email.
13. How to find an IT PAN service centre or TIN facilitation centre?
Location of IT PAN Service Centres or TIN Facilitation Centres in any city may be obtained from local Income Tax Office or any office of UTI/UTIISL or NSDL in that city or from websites of the Income Tax department (www.incometaxindia.gov.in or UTIISL(www.utiisl.co.in) or NSDL (http://tin.nsdl.com)
14. What services are provided by these IT PAN service centres or TIN facilitation centres?
IT PAN service centres or TIN facilitation centres will supply PAN application forms (Form 49A) and forms for 'Request for new PAN card or/and changes in PAN data,' assist the applicant in filling up the form, collect filled form and issue acknowledgement slip. After obtaining PAN from the Income Tax department, UTIISL or NSDL as the case may be, will print the PAN card and deliver it to the applicant.
15. What if I submit incomplete Form 49A?
IT PAN service centres or TIN facilitation centres shall not receive any incomplete and deficient PAN application. However, these centres will assist applicants to correctly fill up form 49A or 'Request for new PAN card or/and changes in PAN data,' as the case may be.
16. What documents and information have to be submitted along with the application for Form 49A?
17. Which documents will serve as proof of 'Identity' in case of Individual applicants, including minors and HUF applicants?
18. What is proof of 'Address' for Individual applicants, including minors and HUF applicants?
19. What documents will serve as proof of Identity and Address for other applicants?
20. How to find 'Assessing Officer code'?
Assessing Officer code may be obtained from Income Tax Office where you submit your return of income. Applicants who have never filed return of income may find out Assessing Officer code with the help of IT PAN Service Centre or TIN Facilitation Centre or jurisdictional Income Tax Office.
21. Is a photograph compulsory for making an application for PAN?
A photograph is compulsory only in case of 'Individual' applicants.
22. What is the procedure for applicants who cannot sign?
In such cases, Left Hand Thumb impression of the applicant should be affixed on Form 49A or 'Request For New PAN Card Or/ And Changes In PAN Data' at the place meant for signatures and got attested by a Magistrate or a Notary Public or a Gazetted Officer, under official seal and stamp.
23. Is father's name compulsory for female (including married/divorced/widow) applicants?
Only father's name is required to be filled in the PAN application (Form 49A). Female applicants, irrespective of marital status, should write only father's name in the PAN application
24. Is it compulsory to mention telephone numbers on Form 49A?
Telephone number is not compulsory, but if provided it may help in faster communication.
25. Who can apply on behalf of non-resident, minor, lunatic, idiot, and court of wards?
Section 160 of IT Act, 1961 provides that a non-resident, a minor, lunatic, idiot, and court of wards and such other persons may be represented through a Representative Assessee. In such cases, application for PAN will be made by the Representative Assessee.
26. I had applied to the department but I do not know my PAN?
Please contact the Aaykar Sampark Kendra (ASK) at 0124-2438000 (or 95124-2438000 from NCR) or visit the www.incometaxindia.gov.in and go to 'know your PAN'.
27. Are there any charges to be paid at IT PAN Service Centres or TIN Facilitation Centres?
UTIISL and NSDL have been authorized to collect Rs.60 + Service Tax as applicable, per PAN application and this includes cost of a tamper proof PAN card. This amount will have to be paid in cash at IT PAN Service Centre or the TIN Facilitation Centre.
28. Do you need to apply for a PAN when you move or transfer from one city to another?
Permanent Account Number, as the name suggests, is a permanent number and does not change during lifetime of PAN holder. Changing the address or city, though, may change the Assessing Officer.
Such changes must, therefore, be intimated to nearest IT PAN service centre or TIN facilitation centre for required correction in PAN databases of the Income Tax department. These requests will have to be made in a form for 'Request for new PAN card or/ and changes in PAN data.'
29. I had applied to UTITSL/ NSDL a month ago but I have not received my PAN card and I have to file my return of income.
Please contact Aaykar Sampark Kendra (0124-2438000 or 95124-2438000 from NCR) or www.incometaxindia.gov.in or send an email to pan@incometaxindia.gov.in.
30. Will the existing PAN cards issued by the Department remain valid?
All PAN allotted and PAN card issued by the Department will remain valid. All persons who have been allotted a PAN need not apply again.
31. Income Tax Department has issued me a PAN card; can I obtain a new tamper proof PAN card?
For obtaining the tamper proof PAN card an application will have to be made in the form for 'Request for new PAN card or/ and changes in PAN data' to IT PAN service centre or TIN facilitation centre, in which existing PAN will have to be indicated and old PAN card surrendered. The payment of Rs.60 + Service Tax as applicable, will also have to be made.
32. I had applied for PAN and received PAN number but have not received the PAN Card?
Apply in the form for 'Request for new PAN card or/ and changes in PAN data' at any IT PAN service centre or TIN facilitation centre quoting the PAN allotted to you.
33. How will the new PAN card be delivered to me?
The UTIISL or NSDL, as the case may be, will ensure delivery of new PAN card at the address indicated by you in the PAN application form or form for 'Request for new PAN card or/ and changes in PAN data.'
34. I want to pay taxes today but I do not have a PAN?
It takes about 15 days to get a new PAN allotted. However, PAN can be obtained in around 5 days if application is made through Internet and processing fee paid through credit card. It is advisable to initiate action for obtaining PAN will in time.
35. Who should be contacted for inquiries regarding PAN applications?
All such inquiries should be addressed to:
For UTIISL
The Vice President
IT PAN Processing Centre,
UTI Investor Services Ltd
Plot No. 3, Sector - 11
CBD - Belapur
Navi Mumbai-400 614
For NSDL
The Vice President
Income Tax PAN Services Unit, NSDL
4th Floor, Trade World, A Wing
Kamala Mills Compound,
S. B. Marg, Lower Parel,
Mumbai-400 013
Courtesy: Income Tax Department