What Is PAN ?
Permanent Account Number (PAN) refers to a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department in India. It is a must to have a PAN number for all those who file their income tax returns, because from 2005 onwards, it has been made mandatory by the Income Tax Department to quote the PAN on return of income as well as on all correspondence with any income tax authority in the country.
Also, it is now compulsory to quote PAN in all documents pertaining to financial transactions notified from time to time by the Central Board of Direct Taxes, such as sale and purchase of immovable property or motor vehicle or payments in cash, of amounts exceeding a certain limit 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 for depositing cash of Rs. 50,000/- or more in a Bank.
* 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.
* Obtaining or possessing more than one PAN is against the law.
* It is compulsory to quote PAN on return of income
* All existing assesses or taxpayers or persons who are required to furnish a return of income, even on behalf of others, must obtain PAN
* Any person, who intends to enter into financial transaction where quoting PAN is mandatory, must also obtain PAN.
* The Assessing Officer may allot PAN to any person either on his own or on a specific request from such person.
The new superior PAN card
The new PAN card is a superior card and in case of individual applicants it will carry a coloured photo-image. It is tamper proof and has built-in security features such as a hologram and UV line. These security features will thwart forgery of PAN cards.
For providing upgraded PAN services, UTIISL has been authorised to collect Rs 60 per application. New simplified PAN form will cost Rs 5.
The UTIISL has set up at least one counter in each of the 501 cities as requested by the Income Tax department. Most of these counters for PAN have been set up at I-T offices.
In big cities, UTIISL has set up more counters. Service counters have also been set up at 50 branches of UTI MF to handle PAN card customers.
The database on the information related to your PAN card remains with the government and UTIISL cannot use it for any other purpose.
Existing cards valid, but you can get a new one
The existing PAN cards would continue to be valid. It is optional for these PAN card holders to obtain the new plastic cards.
Anyone who had already received a permanent account number, but did not have the card, now has the option of either asking the Income-Tax department for an existing type of laminated card, or opt for a smart card by applying for it.
The applications which are pending with the I-T department (application made till June 30, 2003) would also be issued the old card, but if an individual wishes, he or she can go for the new card after paying Rs 60. All applications made from July 1 onwards will be handled by UTI-ISL and applicants will be given the new PAN cards.
