Permanent Account Number or PAN is unique 10 digit alpha numeric identity allotted to each tax payer by the Income tax department. It is identity proof for all government and non government dealings.
However there are many queries among the public about PAN and its usage. Here is the list of general queries regarding PAN card:
1. Is it mandatory for NRIs to have PAN card?
A: Yes, it is mandatory as per Income tax Department and SEBI also has made PAN compulsory for all investors wanting to invest in India. In case any person wants to carry out any kind of financial or investment related transaction over INR 49,999 in India, PAN is mandatory.
2. Is it required for NRI to file income tax return in India if they have PAN?
A: No, it is not compulsory and in case you generate income from India, you need to file tax return. Also it is advisable to file tax return even though you are not making any money in India as it enhances your creditability and makes it easy for a person to avail various types of loans.
3. Who can apply?
A: All existing tax payers or persons who are required to file a Return of Income even on behalf of others and any person who intends to enter in economic or financial transactions were quoting PAN is compulsory.
4. How do I apply?
A: One can apply for PAN by filling up the application forms 49 A or 49AA (for other than Indian citizen). Also one can apply through TIN facility centre, Alankit group is one of them.
5. Is there any need for me to apply for PAN in case I relocate from one city to another?
A: As in the name, the number is permanent and does not change with change in address. In case there is change in address, it should be intimidated to Income tax department so that the new address can be updated in PAN database. Same can be done by filling up form request for new PAN card or for changes and correction of PAN data and submitting the form at any TIN facility centre.
6. Can I obtain or use more than one PAN?
A: Obtaining more than one PAN is punishable under law and may attract a penalty of INR 10,000. In case you have more than one PAN, then it is better to surrender immediately the unused PAN by logging into www.incometaxindia.gov.in.
7. Is a photograph compulsory for making an application for PAN?
A: For “individual” applicants 2 recent color photographs of size 3.5 x 2.5 cm. Paste the photos and avoid stapling or clipping to the form.
8. Is father’s name compulsory for female applicants (including married/ divorced/ widow)
A: Female applicants, irrespective of their marital status should write only father’s name in the PAN application form.
9. What are benefits of using PAN card?
A: PAN card is compulsory document and is required to be produced for many
Government and non government matters. It acts as tax ID which is must for NRIs in case they wish to invest in shares, open a Demat account, purchase real estate etc.
10. What is procedure for applicants who cannot sign?
A: In such cases, left thumb impression (preferred with black ink) of the applicant should be made on format place meant for signature. It should be attested by magistrate or Notary public or Gazetted officer under official seal and stamp.
11. Is it mandatory to mention telephone number/ email ID on PAN application form?
A: It is not compulsory to mention telephone number/email ID but provided will enable to contact the applicant in case of any discrepancy in application.
12. Can application be made on plain paper?
A: No, application should be made only in prescribed format notified by CBDT.
13. Is it compulsory to quote PAN on return of income?
A: Yes, it is compulsory to quote PAN on return of income.
14. If you want to pay taxes today and do not have PAN?
A: It takes 15 days to get new PAN; however PAN can be obtained in 5 days if application is made through internet and processing fee is paid through credit card.
Alankit Group 