PAN stands for Permanent Account Number is unique identification number for a person under the provisions of Income Tax Act, 1961. The application of PAN and its use is governed by Income Tax Act, 1961. Permanent Account Number is a ten-digit alphanumeric number issued by the Income tax department on application made in this behalf.
PAN is mandatory for every company, firm or association of person to file tax returns. However for individual and hindu undivided family (HUF), PAN is mandatory for income above certain limit. Although, for undertaking various transactions quoting of PAN is mandatory.
Application for PAN.
Government Fee and Taxes.
Fresh Application fee if application is rejected.
1 Day time for gathering the necessary documents.
1 Day time to file the application.
7 Working days for processing the application by government.
Copy of Adhaar Card
Passport Size Digital Photo
Different documents required for Company, Firm, AOP etc.
To know detail list of documents required click here.
Permanent Account Number is a ten-digit alphanumeric number issued by the Income tax department on application made in this behalf. It is a unique identification number for a person under the provisions of Income Tax Act, 1961.
PAN is mandatory for every Company, Firm and Artificial Juridical Person irrespective of its taxable income. However, in case of Individual and HUF PAN is mandatory only if there income exceeds maximum amount of income not chargeable to tax. Further, Quoting of PAN is mandatory in following circumstances,
- Filing of Income Tax Return
- Application for TAN for making Tax deduction at source.
- Opening a Bank account
- Purchase of Foreign Currency
- Payment exceeding Rs.50,000/- in restaurant
- Bank Deposits above Rs.50,000/-
- Purchase and Sale of Vehicles.
- Purchase and sale of Immovable Property.
- Purchase transaction in cash exceeding Rs.200,000/-
An application for obtaining PAN can be filed online with any centre of NSDL or online portal.
Section 139A of the Income Tax Act, 1961 governs the application of PAN
PAN is 10 digit alpha numeric number which is structured like AAAPT1234A. First Five characters are letters, next four numerals and last character letter. First three letters are in sequence of alphabets from AAA to ZZZ. Fourth Character is uniquely identified as under:-
A — Association of Persons (AOP)
B — Body of Individuals (BOI)
C — Company
F — Firm
G — Government
H — HUF (Hindu Undivided Family)
L — Local Authority
J — Artificial Juridical Person
P — Individual
T — Trust (AOP)
The fifth character is first character of surname of Individual where fourth character is P and first character of name of Entity, Trust, Company, Ariticial Judicial Person, HUF, Firm, Association of Person or Government.
In case of failure to comply with the provisions of Section 139A of Income Tax Act, 1961 a penalty of ₹10,000/- for each default is payable u/s.272B.
There is facility to verify PAN i.e. Know your PAN on the website of Incometaxindiaefiling.com.
To know the detail of documents required for obtaining PAN click here.