PAN (Permanent Account Number), is a unique 10-digit alphanumeric number identity allotted to the taxpayer by an Assessing Officer of the Income Tax Department under the supervision of the Central Board of Direct Taxes.PAN is issued in the form of a laminated card.
Purpose of PAN CARD
i. It is useful as an identity proof.
ii. PAN is mandatory for financial transactions, return of income, all correspondence with any income tax authority and challans payments due to Income Tax Department.
iii. It is mandatory for economic or financial transactions notified from time-to-time by the Central Board of Direct Taxes.
iv. transactions like sale and purchase of immovable property or motor vehicle or payments to hotels for bills or payments in cash, of amounts above Rs. 25,000/-
v. PAN is mandatory for obtaining a telephone or Mobile connection.
vi. PAN is useful for opening a bank account
vii. PAN is useful for applying Credit and Debit Cards.
viii. PAN is useful for Insurance Payment.
Who require PAN :
• The assesses or tax payers or persons who require to furnish a return of income, even on behalf of others, must obtain PAN.
• The person carrying on a business or a profession whose total sales, turnover or gross receipts are or is likely to exceed five lakh rupees in any previous year.
• The person, who intends to enter into financial transaction where quoting PAN is mandatory.
How to Apply for PAN Card :
In order to improve PAN related services,
Income Tax department has authorized UTI Technology Services Ltd (UTITSL) to set up and manage IT PAN Service Centers in all cities and towns.
For convenience of the people in big cities, UTITSL has set up more than one IT PAN Service Center.