What are the major benefits of holding a PAN card and essential of a PAN number with the guidelines to follow to get a PAN card - How to apply for Pan card by NRI and facility of tatkal pan card
Before you understand the meaning of PAN card and its importance you should know what PAN stands for. The full form of PAN is Permanent Account Number and is a ten-digit alphanumeric identifier which is issued by the Income Tax Department (ITD). If you are an Income Tax payer then you should definitely have a PAN card because it is compulsory. Although it didn’t have much record to have a PAN card in the 90’s but since 2005 it has become compulsory for all those who file their income tax returns. The PAN card issuance is entitled under the Indian Income Tax Act 1961, so for those of you who think having a PAN card is not of utmost importance, then think again.
Essentials of a PAN number:There is a reason why the PAN card is known as 10 digit “alphanumeric” identifier. This is because the first five characters are letters then the next four are numerals and finally the last character is a letter. Check the picture below for better understanding:
In the Permanent Account Number the first 03 letters are random alphabetic series running from AAA to ZZZ. The 4th letter represents the status of the PAN holder. This status can fall into the following categories:
- A → Association of Persons (AOP)
- B → Body of Individuals (BOI)
- P → Individual
- F→ Firm
- H → HUF (Hindu Undevided Family)
- C → Company
- G → Government
- L → Local Authority
- J → Artificial Judicial Person
- T → AOP (Trust)
The 5th letter is the first letter of the applicants Sir name or the name of the Entity, Trust, society, or organization. The next four numbers are sequential numbers from 0001 to 9999. And finally the last letter is the alphabetic check digit. The PAN number quoted to every individual is unique in nature so there is no doubt for duplimacy when it comes to PAN card being allotted to you.
In case you have member in your family who is a non-resident, a minor, a lunatic, an idiot or a court of wards then on behalf of them you can apply for a PAN card as their representative.
Reason of PAN launch:Behind every successful launch there is a reason and the only reason why possessing a PAN card for each individual became so important was to facilitate the linking of various documents. These documents include payment of taxes, assessment, tax demand, tax arrears etc. With the facilitation it would become easy to retrieve information at the same time match information relating to investment. As a tax payer possessing a PAN card would also facilitate raising of loans and other business activities through various sources. These sources can be both internal and external which at the end of the day would be greatly helpful for detecting and combating tax evasion and widening of tax base.
Importance of a PAN card
- As notified by the Central Board of Direct Taxes (CBTD) it has become compulsory to quote a PAN card in almost all the documents pertaining to financial transactions.
- PAN card plays a major role even if you want to buy a property or a motor vehicle.
- In hotels and restaurants if you exceed a certain limit of payment it is important for you to show your PAN card.
- Whether travelling abroad or within India, the security checks your PAN card at the entrance.
- If you want a telephone connection, the government officials will ask you for your PAN card first and then other documents as per the requirements.
- If you want to deposit some cash which is Rs. 50,000/- or more with a bank or a Post office that’s when the PAN card has to be mentioned.
Following are the guidelines that you must follow if you want a PAN:
- It is illegal to possess more than 01 PAN card with a penalty of Rs. 10,000/-.
- On Return of Income whether for yourself or on behalf of others it is compulsory to show your PAN card.
- If you are making any economic of financial transaction notified by CBDT then it is your responsibility to mention the details of your PAN card in the documents.
- You will be allotted with a PAN by the Assessing officer either on your own or on a specific request by the officer.9
NRI’s application for a PANIf you are an NRI then even you can apply for a PAN card. You can do so either by going online or taking assistance form a private broker. A private broker is more suitable as they can guide and assist you right from filling the form to the submission. Even the required documents that a necessary to submit they will guide you on the same.
Along with the Non Resident Indians (NRI’s) even the Person of Indian Origin (PIO’s) as well as 9Overseas Citizen of India (OCI’s) can apply for a PAN card via these brokers.
Tatkal PANThe Tatkal Scheme is a scheme where in you can issue your PAN card within just 02 days. All you have to do is give a certain sum of money which is about Rs. 150 /- and go to this government website www.incometaxindia.gov.in which will provide you with further details regarding the same. People usually choose this scheme in case of an emergency or when they shift or get transferred from one city to another. Although in such a case you would have to inform the old station with a request for transfer of PAN to the present region or city you have been shifted too. However, a Tatkal PAN can only be obtained online when you pay the fee through a ‘nominated’ credit card.
There is a certain amount of fee that you would have to pay at the IT PAN Service Centres or TIN facilitation Centres. It is the NSDL and the UTIISL who are responsible for collecting Rs. 60 (+Service Tax) per PAN application.