The document defines a Permanent Account Number (PAN) as a 10-character alphanumeric code issued by the income tax department to identify taxpayers. PAN is mandatory for certain individuals and entities, including those with income above a threshold, or involved in certain business transactions. It must be quoted on all tax-related documents and correspondence. Failure to apply for or quote PAN can result in penalties. PAN details are also required for transactions like opening bank accounts, purchasing vehicles, mutual funds or property to curb tax evasion.

1. PERMANENT ACCOUNT NUMBER

2. PERMANENT ACCOUNT NUMBER
DEFINITION :
* Permanent account number ( PAN ) is an alpha-numeric ( ten characters )
code given in form of a laminated card to a person by income tax department for the
purpose of identification of the assessee.
* A person can have only one PAN.
ALLOTMENT OF PAN :
A. On application
COMPULSORY APPLICATION FOR ALLOTMENT OF PAN
As per sec. 139A & rule 114, following persons are under statutory obligation to apply
for PAN with in the time limit stated as under
Who is to apply for PAN When to apply for PAN
Any person whose total income
exceeds maximum exempted limit.
On or before 31st may of the
relevant assessment year.

3. Any person whose sales or turnover
or gross receipts are likely to exceed
$ 500000 in any previous year
On or before the end of the relevant
financial year
Any person who is required to furnish
return us 139(4A) I.e. trust and
charitable institution
On or before the end of the relevant
financial year
Any person who is entitled to receive
any sum or income, on which tax is
deductible under in any financial year
On or before the end of the relevant
financial year
Any person who requires export-
import code
Before making any export or import
Assessee under the GST
Before making application for
Registration under GST.

4. Penalty for failure to apply for PAN :
Failure to apply for PAN or to quote PAN - rs 10,000 penalty.
Voluntary application for allotment of PAN :
* The section empowers a person to apply for a PAN, even though, the person does
not fall under any of the categories as mentioned above.
* However, a person, who has been already allotted a PAN under new series, shall not
apply for another PAN.
Whom to apply ( either compulsory or voluntary ) :
The application is to be made to the assessing officer or any other person who has
been assigned the function of allotment of PAN.
Form of application - the prescribed forms are as under :
* For indian citizen / Indian company / entities incorporated in India /
unincorporated entities formed in India - form no. 49A
* In other cases - form no. 49AA .

5. IMPORTANCE OF PAN
A. PAN must be quoted in all documents and challans
a) A person to whose a PAN is allotted, is required to quote that number in -
* All his returns to; or
* Any correspondence with; or
* Any other documents to,
- Income-tax authority.
b) A person to whom a PAN is allotted, is required to quote that number in challans for
payment of any sum due under this act.
B. PAN must be quoted in documents pertaining to certain
prescribed transactions
Every person shall quote its PAN in all documents pertaining to following
transactions entered into by him -
* Transactions relating to sale or purchase of a motor vehicle which requires
registration. ( other than two wheeled vehicles )
* Opening an account with a banking company or a co-operative bank ( other than a
time-deposit and a basic savings bank deposit account )

6. * Making application for issue of a credit card or debit card.
* opening of a demat account
* Payment in cash exceeding 50,000 to a hotel or restaurant against a bill or bill at any
one time,
* payment in cash exceeding rs 50,000 in connection with travel to any foreign country
or payment for purchase of any foreign currency at any one time
* payment exceeding rs 50,000 to any mutual fund for purchase of its units,
* payment exceeding rs 50,000 to a company or an institution for acquireing
debentures or bonds issued by it,
* payment exceeding rs 50,000 to RIB for acquiring bonds issued by it and so on.
C. PAN on TDS & TCS Certificate
a) PAN ON TDS Every person is required to intimate his PAN to the person who has
deducted the tax at source.
Exception - This provision is not applicable to an assessed who furnishes to the payer
a declaration in writing in the prescribed form and manner to the effect that the tax on his
estimated total income is nil.
* The person deducting tax at source is required to quote-
- PAN of the payee;
- PAN of himself;

7. - Tax deduction account number ( TAN ) of himself,
b) PAN on TCS Every person responsible for collecting tax in accordance with the
provision of sec. 206C shall quote PAN of every buyer or licensee or lessee in all
certificates furnished in accordance with the provisions of sec. 206C(3) or 206C(5).
* Every buyer or licensee or lessee is required to intimate his PAN to the seller who
has collected the tax at source.
INTIMATION FOR ANY CHANGE :
Every person shall intimate any changes in his address or in the name and nature
of his business to the assessing officer in the prescribed manner.
QUOTING OF AADHAAR NUMBER :
Every person who is eligible to obtain aadhaar number shall quote aadhaar
number
- in the application form for allotment of permanent account number (PAN)
- in the return of income.

8. Thank you…