Permanent Account Number (PAN)

Obligation to apply for Permanent Account Number (PAN) - section 139A. 

With a view to check tax evasion, as also to facilitate tax administration, it has been made obligatory for assesses to get allotted Permanent Account Numbers from the Income Tax Department. For this purpose, those who have not been allotted Permanent Account Numbers so far and who estimate their income for the year to be more than the maximum amount not chargeable to Income Tax (the present limit is Rs. 50,000/-) or whose turnover / gross receipts in business / profession are or are to exceed Rs.5,00,000/- likely are required to apply for allotment of Permanent Account Numbers in the prescribed form (Form No. 49A) to the Assessing officer having jurisdiction over the person. A specimen application of Form no. 49A is given in Annexure 49. W.e.f. 1-6-2000, the government may notify any class of persons such as importers,exporters, etc.. whether tax is payable by them or not, requiring them to apply for PAN.

PAN is a 10 digit code allotted to each assesses by I.T. Dept.

Following Assesses should own or obtain PAN :

1. Every person whose total Income exceeds the Taxable Limit.

2. Every Business or Profession whose total Sales, Turnover, or Gross receipts exceed Rs. 5 Lakhs.

3. Every person shall quote his PAN or GIR in all documents pertaining to :

a) Who Sales / Purchases any immovable property worth Rs.5 Lakhs or more.

b) Who Sells or Purchases Motor Vehicle or Vehicle which require registration.

c) Who opens a Time Deposit Account with Banks / Post Offices exceeding Rs. 50,000

d) Who deposits amount exceeding Rs.50,000 in Post Office Savings Bank.

e) Who Sales or Purchases Securities exceeding Rs. 1 Lakh.

f) Who opens a Bank Account * .

g) Who makes payment to Hotels & Restaurants against bills exceeding Rs.25,000 at a time.

h) Who wants to purchase DD/Pay Order/ Banker’s Cheque by payment of cash aggregate Rs. 50,000 or more during any one day from a Bank.

i) Payment in cash exceeding Rs.25,000 in connection with Foreign Travel.

j) Payment of an amount of Rs.50,000 or more to buy Mutual Fund, Shares, Debentures or Bonds.

* Those not having PAN/GIR No. can submit a simple declaration in Form No. 60/61.

Any person who has not been allotted PAN/GIR No. and who makes payment in cash otherwise than by way of A/c payee Cheque or Draft or issued by any Bank in respect of any of the above listed transaction, should file a simple declaration in Form No. 60 giving the particulars of the transaction.

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