hy PAN card is necessary

India Infoline News Service / 11:11 , Oct 22, 2012 If valid PAN details are not updated with the bank, tax will be deducted from the interest earned on your deposits at a prevailing rate or 20%, whichever is higher.

The PAN (permanent account number) card is a necessary part of any financial transaction today. It is essential to include PAN details in documents related to the following transactions: 1. If valid PAN details are not updated with the bank, tax will be deducted from the interest earned on your deposits at a prevailing rate or 20%, whichever is higher. 2. Purchase or sale of the property. 3. Sale or purchase of a car. 4. A time deposit of more than Rs. 50,000 with any bank and deposit of more than Rs. 50,000 with post-office savings bank. PAN is mandatory while investing in post-office National Savings Certificate. 5. Opening demat and trading account 6. TDS return to income tax department. 7. Cash payment of Rs. 50,000 or more for purchase of bank drafts in a single day. 8. Cash payment more than Rs. 25,000 in connection with travel to any foreign country (purchase of foreign currency). 9. Application for installation of telephone, including cellular telephone. 10. Payment to hotels bills exceeding Rs. 25,000 at any one time. 11. Opening a bank account. 12. Application for issue of a credit card. 13. A cash deposit of Rs. 50,000 or more with any bank in a single day. 14. Payment of Rs. 50,000 or more to a mutual fund for purchase of units. 15. Minor intending to open time deposit or bank account should quote the PAN of either father, mother or guardian in whose hands income is likely to be clubbed.

How to apply for a PAN Card

Applying for a PAN is a simple. Read to understand how to apply for a PAN, its processing fees and what documents are needed A PAN (Permanent Account Number) Card is used for many financial transactions. A ten-digit alphanumeric number, PAN Card is issued by the Income Tax Department in India. It is mandatory to quote PAN while filing our return of income. PAN is also used in transactions such as sale and purchase of immovable property or motor vehicle. It is also used for payments to hotels for bills or payments in cash, of amounts exceeding Rs. 25,000, in connection with travel to any foreign country. It is 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. Read to understand how to apply for a PAN, its processing fees and what documents are needed. Applying for PAN

Applying for a PAN is a simple and convenient procedure. All you need to do is submit Application Form No. 49A. The PAN application can also be downloaded from the government website, UTI Investor Services website (the authorised agency to manage IT PAN service Centres in various cities) or from the website of National Securities Depository Ltd (NSDL). The Form 49A is also available at IT PAN Service Centres and TIN Facilitation Centres. Individuals not being a citizen of India can use the Form No. 49AA for applying a new PAN Card. Documents needed An individual needs a recent passport size coloured photograph to attach on the Form. He can submit photocopy of any one of the following documents as his proof of identity: School leaving certificate, matriculation certificate, degree of a recognised educational institution, depository account, credit card, bank account, water bill, ration card, property tax assessment order, passport, voter identity card, drivers license, a certificate of identity signed by an MP, an MLA, a Municipal Councilor or a Gazetted Officer. In case the PAN applicant is a minor, any of above documents of any of the parents or guardian of such minor shall serve as proof of identity. You must mention the designation and code of the concerned Assessing Officer of the Income Tax department in Form 49A. You can get this from the IT PAN Service Centres mentioned in the websites listed above. Also, the application shall have to be accompanied by a proof of identity as well as a proof of residence. The filled application form has to be submitted at your nearest IT PAN Service Centre or TIN Facilitation Centre along with the requisite fee. The location of such centres can be searched online on thegovernment website. Need to make changes in the existing PAN An individual can request for changes, correction in PAN data or request for reprint of PAN Card (for an existing PAN) by downloading the application form from NSDL TIN website, Income Tax Departments website or obtain the application form from nearest TIN Facilitation centre and submit the application form to the nearest TIN FC (List of TIN FCs available on aforementioned NSDL TIN website). Processing fees for issuing PAN The processing fees for issuing PAN Card are as follows:

Rs. 96 if dispatch of PAN Card is in India. Rs. 962 if dispatch of PAN Card is outside India. (Both the above charges are inclusive of service tax.)

Why Permanent Account Number(PAN) is necessary? 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. 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. Papers/Documents Required

Copy of Certificate of Registration issued by the Registrar of Firms Registrar of Co-operative Society or any other Competent Authority Any other document originating from any Central or State Government Department establishing Identity and Address of such person.

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 Centers in all cities or towns where there is an Income Tax office and National Securities Depository Limited (NSDL) to dispense PAN services from TIN Facilitation Centers. For convenience of PAN applicants in big cities, UTIISL has set up more than one IT PAN Service Center and likewise there are more than one TIN Facilitation Centers. How to apply for a PAN?

The Income Tax Department (External website that opens in a new window) has ensured that applying for a PAN is an easy and handy procedure. All you need to do is submit the requisite Application Form No. 49A. The PAN application can also be downloaded from the website of UTI Investor Services Ltd (the authorized agency to manage IT PAN service Centres in various cities) or from the website of National Securities Depository Ltd (NSDL) or printed by local printers or photocopied (on A4 size 70 GSM paper) or obtained from any other source. The form is also obtainable at IT PAN Service Centres and TIN Facilitation Centres. The Income Tax Department (External website that opens in a new window) has ensured that applying for a PAN is an easy and handy procedure. All you need to do is submit the requisite Application Form No. 49A. The PAN application can also be downloaded from the website of UTI Investor Services Ltd (the authorized agency to manage IT PAN service Centres in various cities) or from the website of National Securities Depository Ltd (NSDL) or printed by local printers or photocopied (on A4 size 70 GSM paper) or obtained from any other source. The form is also obtainable at IT PAN Service Centres and TIN Facilitation Centres.

The duly filled application form has to be submitted at your nearest IT PAN Service Centre or TIN Facilitation Centre along with the requisite fee. The location of such centres cans be searched online by using the facility given below:

he job of the pan centers are to help with the filing of the application, accepting the application, and processing the pan number forms in a timely fashion.

The pan centers are very strict and do not accept any application which is not filed correctly or completely, thus it is .

The UTIISL takes all information found on the pan applications and sends it to the Income tax department for their records.

It is the Income tax Department who supplies the pan card number and the pan center who receives it and passes it on to you.

Changing your pan card data mentioned on your application is another long, hectic procedure. You will be given a duplicate pan card for any change made.

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All new pan cards printed will have a colored photo. It has a hologram along with other security and tamper-free features. This makes it very difficult for someone else to use your pan card. Pan fees are usually Rs. 94 for India and Rs. 944 for Indians and foreigners living abroad (foreign citizens holding passports from USA {American citizens}, UK United Kingdom, Canada, Australia, Ireland, UAE, Kuwait, Qatar, France, Germany, Singapore, Malaysia, Indonesia, Japan, etc). You can simply log into PanCardNri.com and apply a pan card for OCI or PAN number for PIO and PAN card for NRI online.

There are over 500 UTIISL offices in India. You can find most of them with in the Income tax office itself.

UTIISL does not keep or use any of your documents or information; it is directly forwarded to the Indian governments Income Tax department.

Pan cards are valid forever. There is no need to apply for a new one unless your information changes, or it is damaged. If you would like to, you can still apply for a duplicate pan card anytime you like to update your card to the new design.

IF you already hold a pan number, but never received a pan card, you will need to apply for a duplicate one using your existing pan card number.

When applying for a pan card, you are automatically issued the older version of the card. But if you apply for a smart card, then you will need to pay a small extra fee.

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You can find out your pan card status after applying at the UTIISL website. You simply enter your information and you are delivered the results.

The movement of the process is completely monitored until you received your pan card at your address. Get your card faster

After you submit your documents and application for pan card, you do not need to do anything else until the arrival of your card. UTIISL will dispatch your pan card within a few days of approval. The same time frame exists for the pan card changes and duplicate applications.

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Even though the UTIISL processes the applications, the IT department still manages all of the database and keeps all of your information safe. You can apply online for a pan number OR download New PAN application Form 49A, Duplicate PAN card forms OR PAN correction by visiting: www.PanCardNri.com

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> Permanent account number serves as a proof of id and is mandatory for all financial transactions in India. So, What exactly Is a PAN number?

PAN stands for P-permanent A- account N-number and consists of a combination of 10 letters and numbers. An example of a pan number looks like: (ARFQQ1305M). It is compulsory or necessary for NRIs to have a pan number?

You need to quote your pan number for the following: tax return in India and any taxes due to the tax department cannot be paid without it. You need to quote your pan number on all other financial transactions as well. Other financial transactions include: buying or selling property, car payments, hotel payment, or even traveling abroad with money greater than Rs. 25,000. Telephone connections also require a pan number. Cash deposits in the bank greater than Rs. 50,000 will also need quotation of a pan number. It is the individuals responsibility to research and obtain his/her own pan card before participating in any of these.

Even if you are wanting to file a tax return on the behalf of someone else, you still need to have a pan card. Types of pan cards you can apply are: Individuals, Companies, Partnerships, Firms, HUFs (Hindu Undivided Family), Trusts or Representative assesses.

You should also note that it is against the law to obtain and hold more than one pan number.

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- Two passport sized photographs. The pan department will only start processing your application after you have made the payment. You will receive your pan card by post/mail directly to the address you have mentioned on your application.

The income tax department has outsourced their pan card working to UTIISL. There are many other pan agents & brokers for NRIs on the internet that can help you with the process of pan card.

Want to know what supporting documents are required to apply for a pan card number, then please email: info@nriinvestindia.com
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August 29, 2010

How to Register for a Pan Card Number Online Both New & Lost online?
Lost pan registration details can be a great worry, but the process of dealing with it has been streamlined in recent years. There have been many cases of lost pan cards and so to get a replacement has been made easier in recent years. You can easily download a correction form online by clicking http://www.pancardnri.com/lost-pan-card.html and for locating your center where you need to re-apply, you can also go to http://www.nripan.com/lost-pan-card.html. Learn what are the required documents for applying a pan card. To get back your lost pan card, you need to fill out the lost pan card information form for accurately providing your name and birth details as well as the name of your father. By completing these formalities you can get back your lost pan card number as it not easy to remember the long alphanumeric number by heart. Without a pan card, you may not be able to undertake any financial transaction in India these days.

The pan card has been introduced to account for every financial transaction starting from the opening of a bank account in India. To stop and also to account for all financial dealings as well as buying and selling properties, a pan card is essential in India nowadays. By quoting the number you can be assured of the transaction being recorded with the income tax authorities. To get back your lost number you also need to furnish other details and documents.

You would have to provide two stamp-sized recent photographs of yours as well as make the pan processing payment by check, cash or credit card if you are a non resident Indian or an NRI. With all the information listed above and the photograph, you can check the website pancardnri.com for sending to the income tax circle or ward under whose jurisdiction you are. You can also send an email and get a reply for any query you may be having.

There are advisors both online and also at the land based office to guide you along the simple and easy steps. If you are wondering whether the systems in India would be too much of a worry with red tape and things like that, then it is a thing of the past as things have been streamlined in the last few decades. The system has been made simple and it is easy to find that your problems can be solved in the shortest possible time.

Processing time to receive the permanent account number: Get within 15 working days By staying abroad, you can apply online and get your lost card within 10 to 15 working days. It is best to get your lost pan card without much delay as any financial transaction or doing business in India requires you to have one. This is a common worry among most non resident Indians as most of them left India during the time when bureaucratic red tape was common.

In case you had lost a government paper or document two decades ago or more than that, you would have had to run from pillar to post to get a replacement. But times have changed and there are tens of thousands of people wanting to come over to India to do business or for employment as resident CEOs of foreign multinationals.

More and more foreign companies wanting to do business with India are preferring people settled abroad with ancestral links to the country. PAN is permanent account number and it has to be quoted for all financial dealings. It is absolutely necessary for all NRIs to apply for one and having it with you can make your stay in doing business sin India far easier than you would have imagined.

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Posted in Apply for a PAN Card Online, Pan Card, PAN Number, Permanent Account Number (PAN) Tagged company pan, duplicate pan, duplicate pan number, foreign company pan number, income tax number, India PAN Card, india pan number, india pan online, Lost PAN Card, Lost PAN Number, NRI PAN Card, nri pan correction, NRI PAN Number, Pan Card, pan card correction, PAN Card Number, PAN Form, pan India, PAN Number, PAN number online, pan online, Permanent Account Number

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March 9, 2009

What is a PAN Number and the benefits of Permanent Account Number?

Permanent Account Number (PAN)is a typical ten-digit alphanumeric code that acts, more than anything else, as your personal identity card issued by the Government of India. A typical PAN would read like ABC123456D. PAN is considered to be similar to the social security number issued by the US Government to all its citizens.

PAN issued by the Income Tax Department of the Government of India, is issued primarily for fulfilling an individuals financial obligations and transactions. The following persons MUST have a PAN:

Any person whose total income, or the total income of any other person in whose he is assessable (as in the case of HUF) under the Act exceeds the maximum amount that is not chargeable to tax; or Any person carrying on any business or any other profession whose total turnover, total sales or gross receipts is likely to exceed Rs.5 lakh, or has exceeded the same amount in the previous year; or Any other tax paying person

The requirement for applying for PAN has now been extended to the whole of India.

A person is required to quote PAN for the following transactions:

Any dealings with the IT Department like filing of returns, challans for payment of any tax or sum due to the department etc. Certain notified transactions

PAN is also required for activities such as:

Opening an account Getting a phone line Receiving salary or professional fees Prevent tax evasion by keeping a track of monetary transactions

PAN, once obtained is permanent and is unaffected by change of address.

Frequently Asked NRI Questions: Q. What is the purpose of having a PAN under the new series?

A. PAN will help you have easy transactions and dealings with the IT Department and other Government organizations.

Q. What is PAN under the new series?

A. PAN is a unique, personal, permanent, ten-digit alphanumeric identification number issued by the IT Department of the Govt. of India. Under the new series, PAN is being used to replace the old PAN or GIR number.

Q. Who is to have a PAN? Or Who must apply for PAN? A. The following persons must have/apply for PAN:

Individuals HUF Companies Partnership Firm Association of Persons Body of Individuals Trusts Artificial Judicial Persons Representative Assesses

Q. How to apply for PAN?

A. You are required to fill up the details asked for in Form 49A of the IT Department. You can also download the same from the departments website. While filling up the form, you are required to furnish the following information:

Full Name (initials should be expanded) Date of Birth (in case of individuals only) / Date of Incorporation or formation (in case of companies etc) Fathers full name (in case of individuals) Married women are also required to provide the full name of their father In case of NRI, the applicant is to get her/his ID and address proof attested by the Indian Embassy in their respective country.

Q. Where to apply for PAN?

A. You can apply to the Assessing Officer, IF already taxed; or to the Assessing Officer dealing with new taxpayers, IF you have not been taxed earlier.

Q. What will the PAN Card contain?

A. A typical PAN, apart from having the number would contain your name, date of birth, fathers name, your photograph and your signature. In case of other taxpayers, the card would have the PAN, name and date of incorporation or formation. Q. Can a person, under the new series, have more than one PAN?

A. Please note (and remember) that no one can have more than one PAN. Failure to comply with this rule shall attract a penalty anywhere between Rs.500/- and Rs.10, 000/-.

Q. When is it compulsory to quote PAN?

A. Any and every person having a PAN is required to furnish the same:

While filing returns to the IT Department; Any correspondence with the IT Department regarding challans for payment of direct taxes Opening a Bank account Acquiring a telephone connection (landline and cellular) Selling or purchasing a motor vehicle Selling or purchasing immovable property worth Rs.5 lakh (INR 500,000/-) Bank transactions exceeding Rs.50, 000/Transactions with Post Office exceeding Rs.50, 000/Selling or purchasing securities (shares or debentures etc.) whose contract value exceeds Rs.10 lakh (US$ 1 million) Paying hotels or restaurants amount exceeding Rs.25, 000/-

You must also furnish PAN, if tax is being deducted at source, to the person deducting your tax, so that the same could be mentioned in the TDS certificate.

Q. Do I need to apply for PAN when moving from one city/state to another?

A. While you are not required to apply for PAN while changing your residence, you are to inform about the change to the Assessing Officer for transfer of your PAN and other documents to the new Assessing Officer.
CAG: Huge gap between PAN card holders and tax returns
Special Correspondent Weed out fake PANs, enhance assessee base, update position in respect of deceased assessees' Out of 958 lakh PAN cards issued up to March 2010, only 340.9 lakh I-T returns filed last fiscal

NEW DELHI: The Comptroller and Auditor General of India (CAG) has asked the Income Tax Department to monitor the issuance of Permanent Account Number (PAN) cards to ensure that an individual taxpayer does not end up getting multiple cards. In its report (2010-11) on Direct Taxes' tabled in Parliament on Friday, the CAG pointed to the glaring mismatch between the number of PAN card holders and the number of individual assessees filing income tax returns. The government auditor has revealed that while a total of 958 lakh PAN cards were issued up to March 2010, the number of I-T returns filed last fiscal added up to a mere 340.9 lakh. Tax compliance A PAN card allotted to an individual taxpayer is the unique identification number that helps the tax authorities in tracking tax compliance. Noting the huge gap of 617.1 lakh between the number of PAN card holders and the number of tax returns filed, the CAG suggested that the Central Board of Direct Taxes (CBDT) should identify the reasons for such a massive difference and utilise the information to enhance I-T assessee base. The [I-T] Department needs to put in place appropriate controls to weed out the duplicate PAN cards and also update the position in respect of deceased assessees, the report said, while pointing out that the huge gap could be owing to issuance of multiple cards or demise of such card holders.

Glaring mismatch Significantly, while the number of PAN card holders went up by 117.7 per cent during the 2005-06 to 2009-10, the number of I-T returns filed in the same period has increased by a mere 14.4 per cent. It is should be the constant endeavour of the Department to ensure that the entire assessee base, once correctly identified, is duly meeting the entire tax liability, the CAG said. 5 regulators kept surplus funds Alongside, the CAG also pulled up five regulators for keeping surplus funds worth over Rs. 2,142 crore that had been collected by way of fee and penalty, outside the government accounts in contravention of Constitutional provision. In this regard, the five regulators that have come under the CAG lens are the Securities and Exchange Board of India , the Insurance Regulatory and Development Authority , the Pension Fund Regulatory Development Authority , the Central Electricity Regulatory Commission and the Petroleum and Natural Gas Regulatory Board . Scrutiny of the annual accounts of the five regulatory bodies revealed that these bodies were retaining their surplus funds generated through fee charges, unspent grants received from government, aggregating to Rs. 2,142.47 crore at the end of March, 2010 outside the government Accounts, the CAG said. This practice by the regulators, the CAG said, was in contravention of the instructions issued by the Finance Ministry that all Ministries and Departments of the government would ensure that funds of regulatory bodies were maintained in the Public Account. The Finance Accounts of the Union government therefore do not present a current and complete picture of government finances to the extent of funds of Rs. 2,142.47 crore lying outside the government accounts, it said.