INCOME TAX PAN
Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department.
This number is required for many activities such as opening an account, getting a phone line, receiving salary or professional fees. The primary purpose of PAN is to prevent tax evasion by keeping a track of monetary transactions. The PAN is unique, national, and permanent. It is unaffected by a change of address, even between states.
This number can be considered to be similar to Social security number issued in United States to citizens and other legal residents.
Why it is necessary to have PAN?
It is mandatory to quote PAN on return of income, all correspondence with any income tax authority. From Jan 1, 2005 it will be mandatory to quote PAN on challans for any payments due to Income Tax Department.
Do’s and Don’ts for filling PAN Card Application:
1. Do use ‘Form 49A’ for making application for allotment of PAN.
2. Do fill the application in block letters in English and preferably with black ink.
3. Do paste a recent colour photograph (size 3.5 cm X 2.5 cm) in case of Individual.
4. Do provide the signature within the box, if company, put seal.
5. If thumb impression is put on the application form, do get the thumb impression attested by Magistrate or a Notary Public or a Gazetted Officer, under official seal and stamp.
6. Do provide correct AO code in the application.
7. Do specify AO code as below if applicant is a defence employee
Army – PNE W 55 3, Navy – MUM W 11 8 & Air Force – DEL W 72 2
8. Do attach Proof of Identity (POI) and Proof of Address (POA) in case of Individuals. If Company, attach Copy of the Certificate of Registration issued by the Registrar of Companies.
9. Do provide the POI and POA which have name exactly as written in the application.
10. Do provide details of Representative Assessee in column 14 of application form, if applicant is Minor, Idiot, Lunatic or Deceased. In case of Individuals.
11. Do provide POI and POA for Representative Assesse also, if Representative Assessee is appointed.
12. Do write the complete postal address in the application with landmark.
13. Do mention correct pin code in the address field.
14. Do mention telephone number / e-mail id in the application.
1. Do not overwrite or make corrections in the application.
2. Do not pin or staple the photograph.
3. Do not sign across the box (i.e. signature should be within the box)
4. Do not provide POI and POA which are not in the name of the applicant.
5. Do not write any additional details (date, designation, rank, etc.) along with the signature in the box.
6. Do not mention Husband’s name in the Father’s Name column.
7. Do not abbreviate your name or do not use initials.
8. Do not apply for a new PAN if you already have one.