As per requirements of the Income Tax Act of India, you need a permanent account number for nearly all types of financial documents. The idea was mooted by the Indian authorities to discourage unaccounted transactions and with the help of a pan number, the authorities can easily track any financial activity and also cross check and verify. Primarily, the person holding such a Indian tax number and getting involved in any financial transaction can be easily identified.
Extended to the entire country
Consisting of ten alphanumeric characters issued in the form of a laminated card, pan is meant to be an effective alternative and a substitute to the general index register number given to assesses. Nearly all individuals in India must apply for and possess a pan number if he or she is earning incomes chargeable under the income tax laws of the country. If you are in any business or providing professional service and your income, sales or total receipts exceed Rs0.5 million in any year, requires allotment of a pan number.
The requirement for having a pan number has been extended to the entire country and if you furnish income under section 139(40 of the Act, you have to apply for a pan card. You have to quote the number and even furnish photo copies for all returns and correspondences with the income tax department, challans for paying any tax or sum that is due to the department. You will also have to quote the number if you are applying for any claims from the income tax department.
For opening a bank account or applying for mutual funds, you need to quote the pan number. To avoid any difficulty with financial transactions anywhere in the country or even for remittances and receipts from abroad, people are getting their pan cards straight away if they have not applied for them. You can make an application in the prescribed forms no. 49 A and if you have not been allotted the number as yet, you can attach the copy of the submitted form duly filed out for any reference purposes.
Submit for to your circle or ward
Usually, pan numbers are allotted and card is mailed by registered post to the applicant within one month of their application. New assessee circle or ward under whose jurisdiction you are can be the right place to submit the form. The details have to be carefully filled out and the information has to be accurate. For companies wanting to do business in India, the date of commencement of business, registration number, complete names of at least two directors of the company as well as the branch addresses are to be provided.
For individuals, full and complete name, father’s name, date of birth and sources of income are the major requirements that need to be filled out for applying for a pan number. It is something like a social security number where you can be tracked anywhere in India and all your financial transactions can be recorded. If there are any discrepancies in assessment by the income tax authorities, you can always settle your issues on the basis of valid documents.
If all the information required is submitted, the income tax authority will provide you with a pan number. It helps as you can do financial transaction anywhere in India and not worry about informing as the pan number you submit will automatically get your dealings recorded. All you need to do is to furnish the correct information during the time of filing your income tax returns. You can buy and sell property or open a bank account anywhere in India by just quoting the pan number with the application.