PAN

What is Permanent Account Number (PAN)?

Ans. PAN is a ten-digit alphanumeric unique identification number, issued by the Income Tax Department (ITD) of India. The PAN allotted to a person shall be PERMANENT and will not change with update of details (i.e. name, address, etc.) of the PAN holder or change of PAN Jurisdictional Officer.

Who issues PAN card?

Ans.

The ITD has duly appointed and authorized below 2 service providers for processing, issuance and printing of PAN cards:-

1.    UTI Infrastructure Technology And Services Limited (UTIITSL),

2.    NSDL e-Governance Infrastructure Limited (NSDL e-Gov)

How PAN is issued?

Ans.

PAN is issued in 2 different forms by the authorities:-

 

a.    e-PAN card-

e-PAN is electronic form of PAN card which is shared on the registered email ID provided on the application form of the applicant.

 

b.    Laminated card-

Laminated PAN card is a physical copy of PAN delivered at the communication address i.e. either residential/ office/ Representative Assessee’s (RA) depending upon the option selected by the applicant.

Is Aadhaar mandatory for PAN?

Ans.

a.  Individuals who are resident of India i.e. holding Indian passport are mandatorily required to provide Aadhaar for application of PAN, and

b.  Individuals who are Indian citizen residing outside India and wish delivery of PAN within India then providing Aadhaar is mandatory for them.


Are there any transactions that require mandatory allotment / quoting of PAN?

Ans.

PAN is required for executing many transactions in India. Below are some of the transactions where quoting of PAN is mandatory -

1.    Opening of Bank account,

2.    Opening a Demat Account with a depository,

3.   For investing in securities i.e. Initial Public Offers, Portfolio Investment Schemes and Portfolio Management Schemes, Mutual Funds,

4.    For Sale or purchase of immovable property

5.    Filing of Income Tax Return, payment of tax, etc.

What procedure should be followed to apply for a PAN?

Ans.

PAN application can be made online/ manually in prescribed form along with supporting documents for proof of identity and address to the PAN Authority.

Further, in case of NRIs, there may be certain unique situations where documents may need attestation by the Indian Embassy/Consulate/High Commission/ Apostille. In certain cases, an Individual can digitally sign the PAN application form by using a DSC.

What is the general timeframe to obtain PAN card?

Ans.

Once the original signed PAN application form is submitted to the relevant authority, timeframe to receive PAN card is as under –

a.    e-PAN – within 10-12 working days, and

b.  Physical card (Laminated)–within 25-40 working days (depending on whether delivery is within India or outside India)

Is there any expedited/ TATKAL facility available for PAN?

Ans. No such facility is available at this time.

Is father’s name mandatory to mention on the PAN application form?

Ans. No, father’s name is not mandatory in cases where mother of the applicant is a single parent.

Can a person get his/her mother’s name printed on the PAN card even they have mentioned the father’s name?

Ans. Yes, mother’s name can be printed on PAN card (even though father’s name is mentioned) by selecting appropriate option on the PAN application form.

Are all entities entitled to obtain PAN card?

Ans. As per updated Income Tax Rules, 1962; all Entities are mandatorily required to obtain PAN card even if the total sales, turnover or gross receipts are not likely to exceed Rs. 5 lakh in a Financial Year (i.e. from 1st April to 31st March every year).

Is minor allowed to hold a PAN card?

Ans. Yes, minor can hold PAN card. The minor will have to apply through a Representative Assessee and have to submit additional documents along with the PAN application form. Further, photograph of minor shall not be printed on the PAN card.

Who can apply on behalf of a NRI - minor, lunatic, idiot and court of wards?

Ans. A NRI who is a minor, lunatic, idiot and court of wards and such other persons may be represented through a Representative Assessee. In such cases, application for PAN can be made by the Representative Assessee.

Can a person hold more than one PAN?

Ans. No, obtaining or possessing of more than one PAN is against the law, for which a penalty may also be imposed.

Can a person apply for a duplicate PAN Card, if his original PAN Card is lost/ stolen?

Ans. Yes, a person may apply for a duplicate PAN Card in case his original PAN Card is lost/ stolen. A duplicate PAN Card is issued with the same PAN number.

Are there any adverse consequences of not holding a PAN?

Ans.

It is advisable for NRIs to hold PAN in India and to quote the same with the payer of income in order to avoid deduction of tax at higher of the following rates:-

·         20%; or

·         Rates specified in relevant provision of the Act; or

·         Rates in force [i.e. rates mentioned in the Finance Act or rates as per DTAA (Double Taxation Avoidance Agreement)]


However, there is relaxation provided by the Income Tax Department wherein an individual can provide details to payer of income and avoid higher deduction of tax.

Is it mandatory to file Income Tax Return in India if NRI obtains a PAN Card?

Ans. It is not mandatory for NRI to file Income Tax Return in India just because he/ she holdsa PAN Card. If the NRI is earning income below the taxable limit (subject to certain conditions), he/she may not be required to file his/ her Income Tax Return in the relevant FY.