All about Permanent Account Number (PAN)

29,331 views

Published on

A detailed presentation on PAN and the procedure to get a new PAN.

Published in: Technology, Business
2 Comments
8 Likes
Statistics
Notes
No Downloads
Views
Total views
29,331
On SlideShare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
287
Comments
2
Likes
8
Embeds 0
No embeds

No notes for slide

All about Permanent Account Number (PAN)

  1. 1. Training PresentationWorking Effectively and AccuratelyAll About PANByChoksi Tax Services
  2. 2. Structure Permanent Account Number (PAN) is a ten-digit alpha-numeric number, issued by the Income Tax Department.Each assesse (e.g., individual, firm, company, etc.) isissued a unique PAN. PAN enables department to link all transactions of the„person‟ with the department. These transactions include tax payments, TDS / TCScredits, returns of income / wealth / gift, specifiedtransactions, correspondence, etc. PAN, thus, acts as an identifier for the „person‟ with thetax department.www.choksitax.com
  3. 3.  PAN structure is as follows: AAAAA9999A. First fivecharacters are letters, next four are numerals, last isa character letter If PAN does not follow the above structure, PAN willbe shown as invalid The fourth character of the PAN must be one of thefollowing, depending on the type of assesse:www.choksitax.com
  4. 4.  C – Company P – Person H – HUF (HinduUndivided Family) F – Firm A – Association ofPersons (AOP) T – AOP (Trust) B – Body of Individuals(BOI) L – Local Authority J – Artificial JudicialPerson G – Governmentwww.choksitax.com
  5. 5.  The fifth character of the PAN is the first character ofthe surname / last name of the person (in case ofpersonal PAN card, the fourth character is “P”) or ofthe name of Entity / Trust / Society / Organisation
  6. 6. Register / Track PAN Card RelatedComplain / Status Income Tax Department has started a website namely Sparsh Indiato help Assesse to Register theisr complain related to PAN Cardapplied through NSDL or UTIISL and they can also check the statusof their grievance online. Nature of Complain may be any of the following:-Nature of Complaint Neither PAN Number nor PAN Card Received PAN Card Not Received (PAN Number Received) Returned Undelivered (RUD) Name Mismatch Photo Mismatch Father‟s Name Mismatch Otherwww.choksitax.com
  7. 7. Assessee can file their complain online atthe link given below :- http://incometax.sparshindia.com/pan/PAN.asp?id=1www.choksitax.com
  8. 8. Assessee can check the status of PANGrievance at the link given below :-http://incometax.sparshindia.com/pan/PAN.asp?id=2www.choksitax.com
  9. 9. What is PAN? Permanent Account Number (PAN) is a ten-digitalphanumeric identifier, issued by Income TaxDepartment. Each assessee (e.g. individual, firm,company etc.) is issued a unique PAN.www.choksitax.com
  10. 10. What fourth and fifth digit of PAN signifies? 4TH & 5TH DIGIT OF PAN NO. HERE IT IS: ASSUME PAN NO. IS AAASA1234A AAA I S I A I 1234 I A5 4 3 2 1 1.Alphabetic check Digit2.Sequential number running from 0001 to 99993.First character of assessee‟s last name/surname4.Status5.Alphabetic series running from AAA to ZZZwww.choksitax.com
  11. 11. Permanent Account Number (PAN) is a ten-digit alphanumeric identifier, issuedby Income Tax Department. Each assessee (e.g. individual, firm, company etc.)is issued a unique PAN. 1-5 field are alpha(A to Z)6-9 field are numeric(0-9)10 field is alpha(A-Z) Forth field of pan denotes assessee status :for individual=”P”for Company=”C”for Trust =”T”for partnership firm=”F”Body of Individual:”B” Association of persons:”A”HUF=”H”Local authority:”L”Govt.=”G”judicial artificial person:”j”www.choksitax.com
  12. 12. 2.Fifth field of PAN denotes NAME In case of individual: Surname/last name(as given inpan application)for ex. in case of Ram Kumar(individual)5th field will be “K”4th field will be “P”In case of Ram Kumar Gupta(Individual)5th field will be “G”4th field will be “P”www.choksitax.com
  13. 13.  In case of All Other Assesees (not confirmed for allthe assessee)5th field will be first letter of Name/first Namefor ex : In case of Suresh Jindal (HUF)(confirmed)5th field will be “S”(first letter of First name i.eSuresh)4th field will be “H”(for Huf) for ex: in case of ABB LTD(confirmed)5th field will be “A”(first letter of First name) 4th field will be “C”(for company)www.choksitax.com
  14. 14. Who can apply for PAN? All existing assessees or taxpayers or persons whoare required to file a return of income, even onbehalf of others, must have a PAN. Any person, whointends to enter into economic or financialtransactions where quoting PAN is mandatory, mustalso have a PAN.www.choksitax.com
  15. 15. Who can apply on behalf of minor, lunatic, idiot,mentally retarded, deceased and wards of court? Section 160 of IT Act, 1961 provides that a minor,lunatic, idiot, mentally retarded, deceased, wards ofcourt and such other persons may be representedthrough a Representative Assessee. In such cases, In the application for PAN, details of the a minor,lunatic, idiot, mentally retarded, deceased, wards ofcourt, etc. should be provided. Details of representative assessee have to beprovided in item 14 of the application for PANwww.choksitax.com
  16. 16. Is it compulsory to quote PAN on ‘returnof income’? Yes, it is compulsory to quote PAN on return ofincome.www.choksitax.com
  17. 17. Do I need to apply for a new PAN when Imove from one city to another? Permanent Account Number (PAN), as the namesuggests, is a permanent number and does notchange Changing the address though, may change theAssessing Officer. Such changes must, therefore, beintimated to ITD so that the PAN database of ITDcan be updated. One can intimate change in address by filling up theform for Request for New PAN Card or/and Changesor Correction in PAN data. This form can be submitted at any TIN-FC or onlineat NSDL-TIN website.www.choksitax.com
  18. 18. Can I obtain or use more than one PAN? Obtaining/possessing more than one PAN is againstthe law and may attract a penalty upto Rs.10,000. Therefore it is advisable not to obtain/possess morethan one PAN. If you have more than one PAN, you shouldsurrender the unused PAN by logging into ITDwebsite at www.incometaxindia.gov.inwww.choksitax.com
  19. 19. How do I apply for PAN? You can apply for PAN by filling up Form 49A:Application for Allotment of Permanent AccountNumber (PAN application form). You can also apply for PAN online through NSDL-TIN website.www.choksitax.com
  20. 20. Can I make an application for PAN on plainpaper? No. Application for PAN can be made only in Form49A notified by Central Board of Direct Taxes on29.05.2003.www.choksitax.com
  21. 21. Where can I obtain application form for PAN(Form 49A)? You can obtain the application form for PAN (Form49A) in the format prescribed by Income TaxDepartment from TIN-Facilitation Centers (TIN-FCs),any other stationery vendors providing such forms orfrom NSDL-TIN website.www.choksitax.com
  22. 22. Are there any charges for obtaining Form49A? The form is freely downloadable from NSDL-TINwebsite. You can also obtain the form from TIN-FCs.www.choksitax.com
  23. 23. Where should I submit my PAN application? You can submit your duly filled and signed PANapplication form along with the supportingdocuments to any of the TIN-FCs or PAN Centersmanaged by NSDL.www.choksitax.com
  24. 24. What are the charges to be paid whilesubmitting Form 49A? You have to pay Rs.94 (plus service tax, asapplicable) to TIN-FCs as processing fees whilesubmitting Form 49A. If address for communication is a foreignaddress, the fee payable is Rs. 744 (includingservice tax).www.choksitax.com
  25. 25. What will I receive on submission of the PANapplication form to a TIN-FC? You will receive an acknowledgment with a unique15 digit acknowledgment number on submission ofthe PAN application form.www.choksitax.com
  26. 26. How can I enquire about the status of myapplication? You can inquire the status of your application byaccessing NSDL-TIN website at the “Status track”option and quoting your unique 15-digitacknowledgement number after three days of yourapplication. You can also obtain status of your applicationthrough SMS (Short messaging service) usingmobile phones. For this, you have to type the word“PAN” followed by your 15-digit acknowledgementnumber and send it to 53030. For example: SMSPAN 012345678901234 to 53030.www.choksitax.com
  27. 27. How do I fill the application form 49A? You should fill the application form legibly in Englishcapital letters with black ink. You should read all the instructions before filling upForm 49A.www.choksitax.com
  28. 28. Is a photograph compulsory for making anapplication for PAN? „Individual‟ applicants should affix a recent colourphotograph (size 3.5 cm x 2.5 cm) in the spaceprovided on the form. The photograph should not be stapled or clipped tothe form. The applicant should not sign across thephotograph. The clarity of image on PAN card willdepend on the quality and clarity of photographaffixed on the formwww.choksitax.com
  29. 29. What documents should I submit along withthe application form? You have to submit the following documents with theapplication form:A] Proof of identity (POI)B] Proof of address (POA)The documents for POI and POA depend on thecitizenship and the status of the applicant.www.choksitax.com
  30. 30. Which documents will serve as proof of identity incase of individual applicants and HUF applicants? Individual and HUF Applicants who are citizens of India and located withinIndia at the time of application for PAN: Copy of any one of the following willserve as a proof of identity: School leaving certificate Matriculation certificate Degree of recognized educational institution Depository account statement Valid Credit card Bank account statement Water bill Ration card Property tax assessment order Passport Voter‟s identity card Driving license Certificate of identity signed by a Member of Parliament or Member ofLegislative Assembly or Municipal Councilor or a Gazetted Officer.www.choksitax.com
  31. 31. Note: Document being submitted should be in the fullname of the applicant as mentioned in the PANapplication. In case the PAN applicant is a minor, any of abovedocuments of any of the parents or guardian of suchminor shall serve as proof of identity. In case PAN application is made on behalf of a HUF,any of above documents in respect of karta of theHUF will serve as proof of identity.www.choksitax.com
  32. 32.  2. Citizen of India located outside India at the time ofapplication for PAN: Copy of passport will serve as aproof of identity 3. Foreign Citizen located in India at the time ofapplication for PAN :- Copy of passport and Copy ofPerson of Indian Origin (PIO) card issued by Governmentof India will serve as a proof of identity. 4. Foreign Citizen located outside India at the time ofapplication for PAN :- Copy of any one of the followingwill serve as a proof of identity: Passport Other National ID attested by IndianEmbassy/Consulate/High Commission/Apostille Person of Indian Origin (PIO) card issued by Governmentof Indiawww.choksitax.com
  33. 33. What documents should be submitted as proof ofaddress for individual applicants and HUFapplicants? Individual and HUF Applicants who are citizens of India and located withinIndia at the time of application for PAN: Copy of any one of the following willserve as a proof of address: Electricity bill* Telephone bill* Depository account statement* Credit card statement* Bank account statement* Rent receipt* Employer certificate* Ration card Passport Voter‟s identity card Property tax assessment order Driving license Certificate of address signed by a Member of Parliament or Member ofLegislative Assembly or Municipal Councilor or a Gazetted Officer.www.choksitax.com
  34. 34. Note: For serial numbers 1 to 7, proof of address should not be morethan six months old from the date of application. Document being submitted should be in the full name of theapplicant as mentioned in the PAN application. In case the PAN applicant is a minor, any of above documentsof any of the parents or guardian of such minor shall serve asproof of address. In case PAN application is made on behalf of a HUF, any ofabove documents in respect of Karta of the HUF will serve asproof of address. It is mandatory for individuals and HUF to mention theirresidential address on the PAN application and to submit validproof of the same. If office address is selected as communication address byIndividual and HUF applicants, then POA for office address isalso required.www.choksitax.com
  35. 35.  Citizen of India located outside India at the time ofapplication for PAN :- Copy of any one of the following will serve as a proofof address: Passport Bank account statement in country of residence NRE bank account statement**www.choksitax.com
  36. 36.  Foreign Citizen located in India at the time ofapplication for PAN :- Copy of any one of the following will serve as a proofof address: Passport Bank account statement in India Residential permit issued by the State PoliceAuthorities Registration certificate issued by the Foreigner‟sRegistration Officer Person of Indian Origin (PIO) card issued byGovernment of India NRE bank account statement**www.choksitax.com
  37. 37.  In case „Office Address (of India)‟ is mentioned inapplication made by foreign citizens , then it ismandatory to provide all five documents mentionedbelow as proof for office address. Copy of Visa application to Indian authorities + Copyof Visa granted + Copy of appointment letter/contractfrom Indian Company + Certificate (in original) ofaddress in India of applicant issued by authorizedsignatory of employer on employer‟s letter headmentioning the PAN of the employer + copy of PANcard for the PAN mentioned in the employer‟scertificate.www.choksitax.com
  38. 38. Foreign Citizen located outside India at the time of applicationfor PAN :- Copy of any one of the following will serve as a proofof address: Passport Other National ID attested by IndianEmbassy/Consulate/High Commission/Apostille Bank account statement in country of residence, dulyattested by Indian Embassy/High Commission /Consulate / Apostille in the country where applicantis located Person of Indian Origin (PIO) card issued byGovernment of India NRE bank account statement**www.choksitax.com
  39. 39.  Note: Showing at least two customer induced transactionsin last six months period and duly attested by IndianEmbassy / Consular office / High commission orApostille or by the manager of the bank in which theaccount is held. The applicant may be a joint holder.www.choksitax.com
  40. 40. Which documents will serve as proof of identity and address forapplicants other than individual and HUF? List of documents which are acceptable as proof ofidentity and address for applicants other thanindividual and HUF is as below:www.choksitax.com
  41. 41. Having office of their own in IndiaType of Applicant Documents for proof of identity and addressCompany Copy of certificate of registration issued by Registrar ofCompanies.Firms Copy of certificate of registration issued by Registrar offirms orCopy of Partnership Deed.AOP (Trusts) Copy of trust deed orCopy of certificate of registration number issued byCharity Commissioner.AOP/BOI/Local Authority/Artificial Juridical Person Copy of agreement orCopy of certificate of registration number issued byCharity Commissioner /Registrar of Co-operative Society/ any other Competent Authority orany other Document originating from any Central / StateGovernment Department establishing identity andaddress of such person.www.choksitax.com
  42. 42. Having no office of their own in IndiaType of Applicant Documents for proof of identity and addressCompany/Firms/AOP(Trusts)/AOP/ BOI/LocalAuthority/Artificial JuridicalPersonCopy of registration certificate of the respective country duly attested byIndian Embassy in the country where applicant is located orCopy of certificate of registration with the competent authority in India orCopy of approval issued by the competent authority in India orCopy of the accompanying documents alongwith the approval issued bycompetent authority in India orCopy of the application (duly acknowledged) made by the applicant beforethe competent authority in India.www.choksitax.com
  43. 43. What is the procedure for applicants whocannot sign? In such cases, Left Hand Thumb Impression(preferably in black ink) of the applicant should betaken on Form 49A/change request form at the placemeant for signature. This should be attested by a Magistrate or a NotaryPublic or a Gazetted Officer, under official seal andstamp.www.choksitax.com
  44. 44. Is father’s name compulsory for female applicants(including married/divorced/widow)? Female applicants, irrespective of their maritalstatus, should write only father‟s name in the PANapplication form. There is no provision to mention husband‟s name inthe applicationwww.choksitax.com
  45. 45. Is it compulsory for me to mention telephonenumber/email id on application Form 49A? Either the telephone number or the email should bemandatorily mentioned in the application When the telephone number is mentioned, it isnecessary to mention the STD code. In case ofmobile number, country code should be mentionedas STD code. When the telephone is provided byWLL service providers, the STD code should bementioned. If email id is mentioned, PAN will be communicatedon email id when it is allotted by the Income TaxDepartment.www.choksitax.com
  46. 46. How to surrender/Cancel extra /Additional PANOnline / Manually? An assessee may have been allotted multiple PAN Card. The multiple PAN card may have been allotted to theAssessee for many reasons i.e. He may have applied multiple times for allotment of PAN andevery time he has been allotted a PAN card or may haveinadvertently allowed multiple PAN card by Income taxDepartment , NSDL or UTI. Assessee who have more than one PAN should immediatelyApply for surrender of additional PAN number(s) allotted tothem as having more than one PAN may make them liable to apenalty of Rs. 10,000/- Assessee can apply for surrender of PAN card by twomethods.www.choksitax.com
  47. 47. Manually Write a letter to this effect to the assessing officer under whose jurisdictionyou have been filing your returns. The letter must contain details such as your name, contact details, details ofthe PAN card to be retained, details of the duplicate PAN card(s) which youneed to surrender, etc. Keep the acknowledgement copy of the letter that you have filed with the I-Tdepartment, stating that you are surrendering your additional PAN. That is sufficient as proof of surrender and no additional confirmation fromthe I-T authorities is required. On receipt of the acknowledgement, there is no need for you to wait forintimation from the income tax department considering that the PANsubmitted has now been cancelled by them. The acknowledgment copy of the letter submitted will more than solve thepurpose.www.choksitax.com
  48. 48.  Manually Fill the Form No. 49A forchange/Correction in correction in PAN and submitthe same at your nearest UTI pan centers or NSDLTIN Facilitation centers.www.choksitax.com
  49. 49. Online Visit the Following Link and fill the detail in the onlineForm given at the link and following the instructions http://incometax.sparshindia.com/pan/newPAN.asp You can also surrender the pan online by filing aapplication “change in pan data ” through UTI pancenters or NSDL TIN Facilitation centers.Inapplication fill spare pan number in Last row of theForm.www.choksitax.com
  50. 50. No penalty for quoting wrong PAN ifcaused by negligence of deductee In the instant case, the ITO(TDS) while going through the quarterlyreturn in Form No.26Q, filed by the assessee noted that it hasomitted to quote PAN/had quoted invalid PAN in 196 cases. As regards the reasonable cause, it was pleaded on behalf of theassessee that TDS was deducted and deposited in time ingovernment Treasury. The default is only with regard to the wrong quoting of PAN of 196 ofthe deductees, such deductees quoted wrong PAN. However, correct PAN was given as soon as default was brought tothe notice of the assessee. In this case, the CIT(A) has categorically observed that the assesseededucted TDS correctly and revised PAN and filed the revisedstatement on form No. 26G, hence there was sufficient compliance of the provisions ofsection 139A. There is no dispute that the assessee quoted invalidPAN for 196 deductees which was corrected on being pointed out byITO(TDS). In the instant case, failure to quote right PAN has occurred as theconcerned depositor had misquoted PAN. There is also no disputethat the PAN was corrected after ascertaining the same from therespective deductees. www.choksitax.com
  51. 51.  It was further held that cumulative analysis ofSection 139A and Rules 114B to 114D shows that anobligation to quote PAN/GIR number or to file FormNo.60 is that of customer and not that of the bank. Considering the entire facts and circumstances ofthe present case, and also keeping in view thedecision of ITAT, Ahmedabad “D” Bench in the caseof Financial Cooperative Bank Limited v. ITO,Ward 2(3), Surat (supra), we hold that there wasreasonable cause of the default,if any committed bythe assessee and hence no penalty under section273B of the Act is leviable.www.choksitax.com

×