BUSINESS TAXATION PROJECT

PROCEDURE FOLLOWED TO GET MY PAN CARD

ABOUT PAN CARD

Permanent Account Number (PAN) is unique alphanumeric combination issued to all juristic entities identifiable under the Indian Income Tax Act 1961. It is issued by the Indian Income Tax Department under the auspices of the Central Board for Direct Taxes (CBDT) and is almost equivalent to a national identification number. It also serves as an important ID proof. This number is almost mandatory for financial transactions such as opening a bank account, receiving taxable salary or professional fees, sale or purchase of assets above specified limits. The primary purpose of PAN is to bring a universal identification key factor for all financial transactions and indirectly prevent tax evasion by keeping a track of monetary transactions of high net worth individuals. The PAN is unique, national, and permanent. It is unaffected by a change of address, even between states. This number can be considered to be similar to Social security number issued in United States to citizens and other legal residents

STRUCTURE OF A PAN CARD

PAN structure is as follows: AAAAA9999A: First five characters are letters, next 4 numerals, last character letter Each assesse is uniquely identified by the PAN If the PAN does not follow the above structure, then the PAN will be shown invalid The fourth character of the PAN must be one of the following, depending on the type of assesse: C Company P Person H Hindu Undivided Family (HUF) F Firm A Association of Persons (AOP) T AOP (Trust) B Body of Individuals (BOI) L Local Authority J Artificial Juridical Person G Govt The fifth character of the PAN is the first character (a) of the surname / last name of the person. Nowadays, DOI (Date of Issue) of PAN Card is mentioned at the right (vertical) hand side of the photo on pan card.

DOCUMENTS TO BE SUBMITTED FOR APPLYING PAN CARD

Documents to be submitted as Proof of Identity and Address by Individual who is Citizen of India located in India at the time of application for PAN Proof of identity: Copy of any of the following: 1. School leaving certificate 2. Matriculation certificate 3. Degree of a recognised educational institution 4. Depository account statement 5. Credit card statement 6. Bank account statement/ bank pass book 7. Water bill 8. Ration card 9. Property tax assessment order 10. Passport 11. Voters Identity Card 12. Driving License 13. Certificate of identity signed by Member of Parliament or Member of Legislative Assembly or Municipal Councilor or Gazetted Officer.

Proof of Address: Copy of any of the following 1. Electricity bill 2. Telephone bill 3. Depository account statement 4. Credit card statement 5. Bank account statement/bank pass book 6. Rent receipt 7. Employer certificate 8. Passport 9. Voters Identity card 10. Property tax assessment order 11. Driving License 12. Ration card 13. Certificate of address signed by Member of Parliament or Member of Legislative Assembly or Municipal Councilor or Gazetted Officer.

USES OF PAN CARD

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 :(a) sale or purchase of any immovable property valued at five lakh rupees or more; (b) sale or purchase of a motor vehicle or vehicle, [the sale or purchase of a motor vehicle or vehicle does not include two wheeled vehicles, inclusive of any detachable side-car having an extra wheel, attached to the motor vehicle;] (c) a time deposit, exceeding fifty thousand rupees, with a banking company ; (d) a deposit, exceeding fifty thousand rupees, in any account with Post Office Savings Bank; (e) a contract of a value exceeding one lakh rupees for sale or purchase of securities; (f) opening a bank account; (g) making an application for installation of a telephone connection (including a cellular telephone connection); (h) payment to hotels and restaurants against their bills for an amount exceeding twenty-five thousand rupees at any one time ;

(i) payment in cash for purchase of bank drafts or pay orders or bankers cheques for an amount aggregating fifty thousand rupees or more during any one day; (j) deposit in cash aggregating fifty thousand rupees or more with a bank during any one day; (k) payment in cash in connection with travel to any foreign country of an amount exceeding twenty-five thousand rupees at any one time.

INQUIRIES REGARDING PAN APPLICATIONS

All inquiries should be addressed to: For NSDL For UTIISL The Vice President IT PAN Processing Centre, UTI Investor Services Ltd Plot No. 3, Sector - 11 CBD_ Belapur Navi Mumbai-400 614 e-mail.- utiislgsd@mail.utiisl.co.in Tel No. 022-27561690 Fax No. 022-27561706 The Vice President Income Tax PAN Services Unit, NSDL 4th Floor, Trade World, A Wing Kamala Mills Compound, S. B. Marg, Lower Parel, Mumbai-400 013 e-mail.- tininfo@nsdl.co.in Tel No. 022-2499 4650 Fax No. 022-2495 0664

FORM TO BE SUBMITTED FOR PAN CARD

FORM TO BE SUBMITTED FOR CHANGE OF DATA IN PAN CARD

PROCEDURE I FOLLOWED TO GET PAN CARD

As a student, I have heard lots about Pan card. But in practical life I came to know about the use of pan card when I wanted to open a demat account. I applied for my pan card through a consulting company who is the customer of my brothers concern. I submitted to them all the documents needed for applying for pan card. I paid them an amount of Rs.250/- as charges for pan card and their service charges. I applied it by the beginning of the month of August and I received it through register post by the end of August 2010. I received a letter along with my pan card in which it was mentioned about my pan card number, my IT ward no. and the legal regulations of Pan Card. The signature I made in my pan card application form was scanned and used in the pan card. It was in the same font as I signed. Pan card not just indicates the age but it even says that we have to pay our taxes regularly without evading them.