General Queries Regarding PAN Card

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.

How to Link Aadhar and PAN card, Last date Extended to 31st December 2017

Good news to all those, who have not yet linked the Aadhar card and Pan card as the government has on 31st August, 2017 extended the deadline by four months i.e. now the last date for linking the country’s most vital identity proof – Aadhar and Pan card is 31st December, 2017.

Government has earlier only made it crystal clear that it is mandatory for all those citizens who file income tax returns to link these two databases. Centre had intimated earlier on 30st August that, the date will be extended by Supreme Court so that the benefits of various social welfare schemes can be availed till 31st December, 2017.

Sec 139AA (2) of Income Tax Act says that every person having PAN as on July 1, 2017 and is eligible to obtain Aadhar card must intimate his Aadhar number to the tax authorities. However certain persons are exempt from the requirement – People who are not citizens of India, those above 80 years of age and residents of Assam, Meghalaya and Jammu and Kashmir had been exempt from the requirement.

Also tax department has made it clear on 31st July that, “unless a finding is made that Aadhar is constitutionally not valid, tax return filers will need to link their PAN with Aadhar by August 31st, 2017.

However, 31st December is deadline for people to link their bank accounts with Aadhar and tax filers were permitted to file their income tax returns by August 5 without linking their Aadhar with PAN. They were just to quote Aadhar or the acknowledgement number for having applied for the ID.

Also the department further state that – tax filers who fail to link Aadhar and PAN on or before 31st August, 2017, their income tax returns will not be processed. Extension of four months for linking Aadhar-PAN is big relief for tax payers by the central government.

There are many tax payers who have filed their income tax return on time, but had failed to link their Aadhar card number with PAN card for some unavoidable reasons or mismatch in the data of two cards, now can link the two by 31st December , 2017. This move comes at a time when a similar extension has been granted for furnishing Aadhar to avail benefits of social welfare schemes.

Also the government has made it clear that linking of Aadhar- PAN is necessary to avoid duplication, which had resulted in tax evasion.

Also the extension has to be read in the backdrop of the fact that Aadhar is facing slew of legal challenges on grounds that it breaches privacy, leaving officials to wonder if the government, can still push ahead with its use in wide range of services.

Centre has made the linking the two numbers mandatory to prevent duplication of PAN cards and curb money laundering and unlawful activities.