PAN CARD - PERMANENT ACCOUNT NUMBER

PAN CARD – Permanent Account Number:

            PAN (Permanent Account Number) Card is a Identification Card issued by Income Tax Department of India, which consists of 10-Digit Alphanumeric Characteristics.  The PAN is mandatory for utilize the various service offered by Government and Non-Governmental Sectors. It is considered as an Identity proof of a person/Tax Payer. Permanent Account Number is issued by Indian Income Tax Department under the Supervision of Central Board of Direct Taxes(CBDT).

Uses of PAN Card :

Pan Card is mainly used for the Financial Transactions Such as:

ü  Payment/Refund of TDS

ü  To open a Bank Account

ü  Receiving Taxable Salary or Professional fees

ü  To Opening of D-MAT Account

ü  Sale/Purchase of Assets above Specified limits

ü  Buy Mutual Funds and More uses by the PAN Card

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 1 January 2005 it will be 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 the following financial transactions :-

v  For payment of direct taxes

v  To file income tax returns

v  To avoid deduction of tax at higher rate than due

v  To enter into specific transaction such as:

            (a) Sale or purchase of immovable property valued at Rs.5 lakh or more
            (b) Sale or purchase of a vehicle other than a two wheeler
            (c) Payment to hotels or restaurants an amount exceeding Rs 25,000 at any one time
            (d) Payment in cash an amount exceeding Rs 25,000 in connection with travel to any foreign country
            (e) Payment of an amount of Rs 50,000 or more to the Reserve Bank of India for acquiring bonds
            (f) Payment of an amount of Rs 50,000 or more to a company or an   institution for acquiring bonds or debentures
            (g) Payment of an amount of Rs 50,000 or more to a company for acquiring shares
            (h) Any mutual fund purchase
            (j) Deposit exceeding Rs.50,000 with any single banking institution in 24 hours.
            (k) Payment exceeding Rs.5 lakh for purchase of bullion and jewellery.

Types of PAN Card:

            There are two modes of Pan Card (Permanent Account Number) for the Tax Payers such as Form 49A and Form 49AA for Tax Payers.

1). Form 49A – For Indian Residing Peoples

2). Form 49AA – For Non-Citizens of India

Form 49A	Form 49AA
Individual Citizens of India	Individuals who are not Indian Citizens
Hindu Undivided Families
Companies Registered in India	Companies Registered Outside of India
Associations Registered in India	Firms Formed or Registered outside India
Firms including LLP, formed or Registered in India	LLPs (Limited Liability Partnership) registered outside India
Local Bodies