what is PAN Registration, Utility, & its structure ?
PAN Registration (Permanent Account Number) is a 10-digit unique alphanumeric number issued by the Income Tax Department, Government of India. Additionally, it is a recognizable proof of number with all the tax-paying citizens in India.
Furthermore, PAN is an electronic framework which records all the tax data for an individual/organization against a single PAN number. It serves as an essential key to data capacity.
Utility of PAN Registration
PAN empowers the Income Tax department to distinguish/link all tax-related transactions of the PAN holder with the department. These transactions include tax payments, TDS/TCS credits, returns of income, specified transactions and so forth, etc.
Structure of PAN
Who can obtain PAN registration?
- Firstly, individuals, or
- Secondly, companies, or
- Thirdly, partnership firms
- Fourthly, non-resident Indians, or
- Lastly, anyone who pays taxes in India.
How to Apply for PAN with TaxHelpdesk?
Once your order is placed, TaxHelpdesk’s dedicated team for reviewing of documents will check the documents uploaded by you within 24 working hours. After reviewing documents, there will be an assignment of a Tax Expert. Thereafter, there will be the processing of your order. Apart from this, you also will be able to check the status of the order in your respective account.
Who has to obtain PAN Registration?
- His total income or the total income of any other person in respect of which he is assessable during the year exceeds the maximum amount which is not chargeable to tax.
- He carries on any business or profession whose total sale, turnover, or gross receipts are or are likely to exceed five lakh rupees in any year.
It is non-individual resident persons and persons associated with them shall apply for PAN if the financial transaction entered into by them during the financial year exceeds Rs. 2,50,000.
Transactions in which PAN Registration is mandatory
Following are the transactions in which quoting of PAN is mandatory by every person except the Central Government, the State Governments and the Consular Offices:
Transactions Involving The Sale Or Purchase Of
- Shares of a company not listed in the recognised stock exchange by any person for an amount exceeding Rs. 1 lakh per transaction.
- Any immovable property for an amount exceeding Rs. 10 lakh or valued by stamp valuation authority referred to in section 50C of the Act at an amount exceeding ten lakh rupees.
- A contract for the sale or purchase of securities (other than shares) for an amount exceeding Rs. 1 lakh per transaction
- Lastly, goods or services of any nature other than those specified above for an amount exceeding Rs. 2 lakh per transaction.
- Cash payment of an amount exceeding Rs. 50,000 in connection with travel to any foreign country or payment for the purchase of any foreign currency at any one time.
- Payment of an amount exceeding Rs. 50,000 to a company or an institution during acquisition of debentures or bonds issued by it.
- Payment of an amount exceeding Rs. 50,000 to the Reserve Bank of India during acquisition of bonds issued by it.
Some other Transactions In Which PAN Registration Is Mandatory
- Payment in cash for an amount exceeding Rs. 50,000 during any one day for the purchase of the bank drafts or pay orders or banker’s cheques from a banking company or a co-operative bank.
- A time deposit of amount exceeding Rs. 50,000 or aggregating to more than Rs. 5 lakh during a financial year with – (i) a banking company or a co-operative bank (ii) a Post Office; (iii) a Nidhi referred to in section 406 of the Companies Act, 2013 or (iv) a non-banking financial company
- Payment in cash or by way of a bank draft or pay order or banker’s cheque of an amount aggregating to more than Rs. 50,000 during a financial year for one or more pre-paid payment instruments, as defined in the policy guidelines for issuance and operation of pre-paid payment instruments issued by the Reserve Bank of India under section 18 of the Payment and Settlement Systems Act, 2007 to a banking company or a co-operative bank or any other company or institution. [As amended by Finance Act, 2019]
- Lastly, for payment of an amount aggregating to more than Rs. 50,000 during a financial year as a life insurance premium to an insurer.
Opening an account with a banking company or a cooperative bank
Opening of a DEMAT account with a depository, participant, custodian of securities or any other person with SEBI
Lastly, any other transactions not stated above.
Capacity in which PAN Registration can be obtained
Procedure Of PAN Registration
Documents required for registration of PAN
– Firstly, an Identity Proof (Aadhaar Card / Driving License / Ration Card / Bank Certificate/Employment ID Card)
– Secondly, proof of date of birth (Birth Certificate / Matriculation Certificate/Marriage Certificate / Domicile Certificate /Passport / Aadhaar Card with complete details of DOB)
– Thirdly, address Proof
– Fourthly, passport size photos
Time involved in obtaining registration of PAN
Period taken from the date of application on submission of all the required documents:
Processing of application
e-Copy of PAN
Physical copy of PAN
Request for reissue of lost PAN card or for change/correction in PAN data is to be filed in “Request For New PAN Card Or/ And Changes Or Correction in PAN Data”.
Afterwards, for Changes or Correction in PAN data, fill all mandatory fields of the Form and select the corresponding box on left margin of appropriate field where correction is required.
For re-issuance of a PAN card without any changes in PAN related data of the applicant, fill all fields in the Form. However, please do not select any box on left margin.
Further, in case of either a request for Change or Correction in PAN or request for re-issuance of a PAN Card without any changes in PAN data, the address for communication will be updated in the IT department database using address for communication provided in the application.
Yes, it can be cancelled. For Cancellation of PAN, fill all mandatory fields in the Form, enter PAN to be cancelled in appropriate column of the Form. Thereafter, select the check box on left margin. PAN to be cancelled should not be same as PAN (the one currently used) mentioned at the top of the Form.
No, a person cannot hold more than one PAN in one capacity. Further, there is a penalty of Rs. 10,000/- under section 272B of the Income-tax Act, 1961 for having more than one PAN. If there is an allocation of more than one PAN to a person, then he should immediately surrender the additional PAN card(s).