WHAT IS PAN?

PAN is a 10 digit alpha-numeric unique number allotted to each individual who apply for it.

The digits of PAN signify the following:

Let PAN of Mr. Ravi Lamba be:  A   A   A   P   L   1  2   3   4   C

WHAT DOES THE FOURTH CHARACTER- STATUS MEAN?

A  – AOP

B  – BOI

C  – COMPANY

F  – FIRM

G  – GOVERNMENT

H  – HUF

L  – LOCAL AUTHORITY

J  – ARTIFICIAL JURIDICAL PERSON

P  – INDIVIDUAL

T  – TRUST (AOP)

K  – KRISHI (TRUST KRISH)

FOR WHOM IS IT MANDATORY TO HAVE PAN?

  • Every person whose Total Income exceeds the Basic Exemption Limit (Rs. 2,50,000/-, 3,00,000/- or 5,00,000/- as applicable)
  • Every person carrying on business or profession whose total sales, turnover or gross receipt exceeds Rs. 5 Lacs in any previous year
  • Every person required to furnish return under section 139(4A) i.e., charitable trust

WHAT ARE THE ADVANTAGES OF HAVING PAN?

  • It is a unique 10 digit number which serves as an identity proof for lifetime.
  • Also, quoting PAN is mandatory in certain situations like:-

o   Filing Return of Income

o   In challans for payment

o   Purchase or sale of any immovable property exceeding Rs. 5 Lacs

o   Opening a bank account

o   Making an application to bank for issuing credit card

o    Acquiring shares of a company through public issue, etc.

 

HOW TO APPLY FOR PAN?

The application for PAN may be applied either online through NSDL (https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html)  or UTITSL (https://www.utiitsl.com/UTIITSL_SITE/pan/)  government affiliated websites, or offline by visiting your nearest Income Tax PAN centres, where the PAN shall be alloted within 15 days of submission of application.

The applicable form is Form 49A and the fees for residents is Rs. 110/- (w.e.f. 01/07/2017- earlier it was Rs. 107/-). The supporting documents require details regarding- identity proof, date of birth/ incorporation and proof of address. For list of documents- refer: https://www.incometaxindia.gov.in/Documents/documents-required-for-pan.pdf

The online process is quite easy:

Note:   In order to apply online for correction/ change in PAN- choose application type as ‘Correction/ Change in PAN’ instead of ‘New PAN’, and follow the same process as above. Further, you are required to pay the same fees as if for applying new PAN.

 

HOW TO APPLY FOR DUPLICATE PAN CARD IN INDIA

Only Indian citizens should use this form for submitting application for allotment of PAN. Indian citizens located outside India should also use this form.

Applicant will fill Form 49A online and submit the form.

If the data submitted fails in any format level validation, a response indicating the error(s) will be displayed on the screen.

The applicant shall rectify the error(s) and re-submit the form.

If there are no format level error(s), a confirmation screen with data filled by the applicant will be displayed.

The applicant may either edit or confirm the same.

The fee for processing PAN application is ₹ 110 (₹ 93 + 18% Goods And Service Tax).

 

HOW TO APPLY FOR AADHAR CARD

HOW TO LINK AADHAR WITH PAN?

Recently, the government has made it mandatory for the assesses filing their ROI only after successful linking of their Aadhar with PAN to curb tax evasion through the use of multiple PAN cards. Though, after 31st July 2017 when the date was extended to the 31st  August, 2017 government provided certain relaxation whereby returns could be filed by just quoting Aadhar no. in their returns even if it was not linked to their PAN.

But from now on, strict provisions are laid down to mandate such linking. The last date of linking PAN with Aadhar shall be announced shortly. The process is as follows:

  • Login to Income Tax e-filing website
  • Go to Profile Setting–Link Aadhar
  • Enter PAN, Aadhar, name as per Aadhar and Captcha code
  • On submission a dialog box will inform successful linking
  • In case there is name mismatch– you will get an OTP on your Aadhar registered mobile number. For a DOB mismatch– apply for correction in PAN or Aadhar.