In simple words PAN card is an identity in the eyes of Income Tax Department. It contains all necessary information which Income Tax Department needs. In this article we will cover all aspects of PAN like what is PAN, How to apply, Who is liable to apply etc. Please ask if you have any queries regarding PAN in the comment form given below.
What is PAN Card?
A PAN Card represents an identity proof for an individual that serves as recognition to the Government at the time of paying taxes. It is a ten digit unique alpha numeric number that is distinct from any other PAN Card. The full form of PAN is ‘Permanent Account Number’ and usually comes in a laminated form from the Assessing Officer of the Income Tax Department. Apart from mainly being used as an aid to pay taxes, it also serves as a medium of convenience when to serving occasions such as depositing a sum in excess of Rs. 50, 000 with a bank or a Post Office, or, while making a payment in excess of Rs. 20, 000 at restaurant as a bill. There are also other instances where presentation of PAN Card becomes valid at the time of making certain specified expenditures.
Am I liable to apply PAN Card?
Every person who is liable to pay taxes falls into the category of people who should necessarily obtain PAN from the Indian Government. Additionally, people who are into any kind of financial or economic transaction should also obtain a PAN where such criteria are required to be fulfilled. However, it should be known that a parson may also be allotted a PAN Card by the Assessing Officer himself if the officer desires so. Any person receiving any income on which TDS is payable will furnish PAN to the TDS deductor and deductor will give Form 16 to deductee specified PAN in it.
Process to apply PAN Card?
For the purpose of applying a PAN Card, one must ensure presence of certain documents from beforehand. These documents include a colour photograph of the assessee, a valid residential proof of the assessee, a signature specimen of the assessee and other informative data. Once all the necessary documents have been accumulated, the person needs to obtain FORM 49A. The Form can be obtained from the IT PAN Service Centre and will cost RS. 5/- per form. Once the form has been obtained, make sure that the same is completed with precision and then be submitted to the respective department. It may be noted that the form required for the aforesaid purpose should necessarily be the new Form 49A as the old form is no longer valid.
Is it necessary to file income tax return if having PAN Card?
Filing return becomes mandatory only if the income is above the tax free limit. In case where an assessee finds his income below the taxable limit, then the same is not under an obligation to file his taxes in-spite of having a PAN Card. However, a period where his income is taxable in a year, he then must file his income tax return and also his PAN Card number at the time of filing the return. The assessee also has the option to file his return with nil taxable income just to be on the safer side.
Should I Surrender Extra PAN Card?
You should have only one PAN card on your name. If you have by mistake or by any reason having two or more PAN cards on your own name then you must surrender to the help desk of Assessing Officer. The detail press release was issued in this regard on 12th Feb, 2007. (Press Release No.402/92/2006-MC (08 of 2007).