Permanent Account Number

PAN stand for "Permanent Account Number "registered with Income Tax Authority in India. It is a sort of registration with Indian Income Tax Authorities. It is mandatory to obtain PAN if you are required to fix Income Tax Return and or to undertake certain transactions and if this turnover or sale exceeds Rs. 5 lacs per annum.

Permanent Account Number (PAN) is a Ten- Digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department, to any "person" who applies for it or to whom the department allot the number without an application.

PAN enables the department to link all transactions of the "person" with the department. These transactions include tax payments, TDS/TCS credit, returns of income /wealth/gift/FBT, specified transactions, correspondence, and so on. PAN, thus, acts as an identifier for the "person" with the tax department.

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 challan for any payments due to Income tax Department.

It is also compulsory to quote PAN in all documents pertaining to the following financial transactions: -

  • Sale or purchase of any immoveable property valued five lakh rupees or more;
  • Sale or purchase of a motor vehicle or vehicle, [the sale or purchase of a motor vehicle or vehicle does not include two wheeled vehicle, inclusive of any detachable side care having an extra wheel, attached to the motor vehicle;]
  • A time deposit, exceeding fifty thousand rupees, with a banking company;
  • A deposit , exceeding fifty thousand rupees, in any account with the Post Office Saving Bank;
  • A contract of a value exceeding one lakh rupees for the sale or purchase of securities;
  • Opening s bank account;
  • Making an application for the installation of a telephone connection (including a cellular telephone connection);
  • Payment to hotels and restaurants against their bills for an amount exceeding twenty five thousand rupees at any one time;
  • Payment in cash purchase of bank drafts or pay orders banker's cheques for an amount aggregating fifty thousand rupees or more during any one day;
  • Deposit in cash aggregating fifty thousand rupees or more with a bank during any one day;
  • Payment in cash in connection with travel to any foreign country of an amount exceeding twenty five thousand rupees at any one time.
IDENTITY AND ADDRESS PROOF DOCUMENTS
Document 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 in the prescribed format
* documents submitted as proof of address for serial numbers 1 to 7 should not be more than six months old from the date of application.
Proof of Identity Copy of any of the following:
1 Electricity bill*
2 Electricity bill*
3 Depository account statement*
4 Credit card statement*
5 Bank account statement/bank pass book*
6 Bank account statement/ bank pass book
7 Rent receipt*
8 Employer certificate*
9 Voters Identity card
10 Property tax assessment order
11 Driving License
12 Ration card
13 Certificate of identity signed by Member of Parliament or Member of Legislative Assembly or Municipal Councilor or Gazetted Officer in the prescribed format
* documents submitted as proof of address for serial numbers 1 to 7 should not be more than six months old from the date of application.
If the applicant is a minor (i.e. blow 18 years of age at the time of application), any of the documents as per the lists specified below of any of the parents / guardian of such minor shall be deemed to be the proof of the identity and address of the applicant.
Document to be submitted as Proof of Identity and Address by Foreign Citizen located in India at the time of application for PAN
Proof of Identity Copy of any of the following:
1 Copy of passport
2 Copy of person of India Origin (PIO) card issued by Government of India
Proof of Address Copy of any of the following:
1 Copy of passport
2 Copy of bank account statement in India
3 Residential permit issued by the State Police Authority
4 Registration certificate issued by the Foreigner's Registration Officer
5 Copy of person of India Origin (PIO) card issued by Government of India
6 Copy of NRE bank account statement (showing at least two customers induced transactions in last six month period and duly attested by Indian embassy /Consular Office/High Commission or apostille or by the manager of the bank in which the account is held. The applicant may be a joint holder.
7 Copy of Visa application to Indian Authorities and copy of Visa granted and Copy of appointment letter/contract from Indian company and Certificate (in original) of Indian address issued by employer ( the certificate should be on employer letterhead mentioning Pan of the employer. Copy of PAN mentioning in the employer's certificate should be submitted)
Note : If the applicant has provided an Indian office address, then all the following five documents are mandatory along with any of the first six above mentioned documents:-
  • Copy of visa application to Indian authorities and
  • Copy of Visa granted and
  • Copy of appointment letter/contract from Indian Company and
  • Certificate (in original) of address in India of applicant issued by authorized signatory of employer on employer's letter head mentioning the PAN of t he employer.
  • Copy of Pan card for the PAN mentioning in the employer's certificate.
Document to be submitted as Proof of Identity and Address by Foreign Citizen located outside India at the time of application for PAN
Proof of Address Copy of any of the following:
1 Copy of passport
2 Copy of other National ID attested by Indian Embassy/Consulate/High Commission /Apostille
3 Copy of person of India Origin (PIO) card issued by Government of India
Proof of Address Copy of any of the following:
1 Copy of passport
2 Copy of other National ID attested by Indian Embassy/Consulate/High Commission /Apostille
3 Copy of bank account statement in country of residence, duly attested by Indian Embassy/Consulate/High Commission /Apostille in the country where applicant is located
4 Copy of person of India Origin (PIO) card issued by Government of India
5 Copy of NRE bank account statement (showing at least two customers induced transactions in last six month period and duly attested by Indian embassy /Consular Office/High Commission or apostille or by the manager of the bank in which the account is held. The applicant may be a joint holder.
Proof of Identity and Address
HUF Any document prescribed in the case of individuals in respect of Karta of the HUF.
Company Copy Certificate of Registration issued by Registrar of Companies.
Firms Copy of certificate of Registration issued by Registrar of Firms or copy of Partnership Deed
Document to be submitted as Proof of Identity and Address by persons other than Individuals (i.e. Firm,BOI,HUF,AOP,AOP(Trust),Local Authority, Company, artificial Juridical Person) located in India at the time of application for PAN
Proof of Identity and Address
Copy of certificate of Registration issued by Registrar of Firms or copy of Partnership Deed
AOP (Trusts) Copy of Trust Deed or Copy of Certificate of Registration issued by Charity Commissioner.
AOP/BOI/Local/Authority/Artificial Juridical Person Copy of Agreement or copy of Certificate of Registration issued by Charity Commissioner or Registrar of Co-operative Society or any other competent authority or any other document originated from any Central or State Government Department establishing identity and address of such person.
a Copy of registration certificate of the respective country duly attested by Indian Embassy/Consulate/High Commission/ Apostille in the country where applicant is located
b Copy of certificate of registration with the competent authority in India
c Copy of approval issued by the competent authorities in India
- Copy of approval issued by the competent authorities in India
d Copy of accompanying documents along with the approval issued by competent authorities in India
e Copy of the application (Duly acknowledged) made by the applicant before the competent authority in India
Document to be submitted as Proof of Identity and Address by persons other than Individuals (i.e. Firm,BOI,HUF,AOP,AOP(Trust),Local Authority, Company, artificial Juridical Person) located Outside India at the time of application for PAN
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