Permanent Account Number – PAN No

 

Permanent Account Number (PAN) refers to a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department in India. A PAN card contains the following particulars: Name, Father’s name (even in case of married women), Date of birth, the Permanent Account Number, signature and photograph of the assessee.

The Income Tax Department has ensured that applying for a PAN is a simple and convenient procedure. All you need to do is submit the requisite Application Form No. 49A. Individuals not being a citizen of India can use the Form No. 49AA for applying a new PAN card.

The PAN application can be downloaded from the website of UTI Investor Services Ltd or from the website of National Securities Depository Ltd (NSDL) or printed or photocopied (on A4 size 70 GSM paper) or obtained from any other source. The form is also available at IT PAN Service Centres and TIN Facilitation Centres.

You will need a recent colour photograph (stamp size: 3.5 cm x 2.5 cm) to attach on the form. You must mention the designation and code of the concerned Assessing Officer of the Income Tax department in Form 49A. You can get this from the IT PAN Service Centres mentioned in the websites listed above.

Also, the application shall have to be accompanied by a proof of identity as well as a proof of residence. In case of Individual and HUF applicants, if Address for Communication is selected as Office, then Proof of Office address along with Proof of residential address is to be submitted to NSDL.  The filled application form has to be submitted at your nearest IT PAN Service Centre or TIN Facilitation Centre along with the requisite fee.

Further, requests for changes or correction in PAN data or request for a new PAN card, reprint of a PAN card may also be made online through the website http://www.tin-nsdl.com.

Payment can be made though Demand Draft, Cheque, Credit Card / Debit Card, Net Banking.

With effect from April 1, 2012, fees for PAN application has changed to  96 for dispatch within India and Rs 962 for dispatch outside India.

Applicants making credit card / debit card payment will be charged an additional surcharge of   5.00 by the bank providing payment gateway facility.

Applicants making payment through Net Banking facility will be charged an additional surcharge of   4.00 + service tax for payment gateway facility.
As per RBI guidelines, the entities making e-commerce transactions are required to provide PIN (Personal Identification Number) while executing an online transaction. Accordingly, before making payment for online PAN/TAN applications using credit/debit card, please ensure that the PIN is obtained from your respective Banks.

It has been made mandatory by the Income Tax Department to quote the PAN on return of income as well as on all correspondence with any income tax authority in the country. The coverage of PAN is being widened gradually. More transactions are being brought within the purview of PAN. Quoting PAN is now mandatory for a number of transactions including:

  • Purchase of jewellery worth Rs 5 lakhs and more,
  • Sale or purchase of property valued at Rs 5 lakhs or more,
  • Sale or purchase of motor vehicles other than two- wheelers
  • Bank deposits exceeding Rs 50,000.
  • Telephone connection applications including cellular connection, opening of bank accounts, issue of a debit/credit card by a bank
  • Hotel bills of over Rs 25,000 and mutual fund investments of Rs 50,000, payment of insurance premium above Rs 50,000 in cash
  • Must for operating demat accounts or for opening a bank account.
  • Sale or purchase of shares, bonds, derivatives, debentures or other securities over Rs.1 lakh.
  • An investment exceeding Rs.50, 000 in shares, mutual funds or post office savings.
  • Payment of a minimum of Rs.25, 000 against hotel or restaurant bills
  • Cash payment of a minimum of Rs.50, 000 for buying bankers cheques, bank drafts or pay orders on a single day.
  • PAN of a parent or guardian (who will be clubbing the income) is required in case a minor intends to have a time deposit or bank account

It is also to be noted the tax laws were also amended some time ago so as to provide that tax deducted at source (TDS) on payments could be as high as 20 percent if PAN is not quoted. The regular rate of TDS is between 2-10 percent.

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For a detailed advise, you can contact info@onlineitreturn.com or visit www.onlineitreturn.comOnlineITreturn.com is an online portal for efiling your income tax return and advise, consultancy on taxation matters including Service Tax, TDS. All taxation matters are handled by Chartered Accountants.

Professions covered under TDS Sec 194J

 

For the purpose of TDS on fees for profession and technical service under Section 194J, the relevant services are defined as under:

Professional Services:  means services rendered by a person in the course of carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or advertising or any other profession notified by the Board for the purposes of section 44AA or of Sec 194J

Fees for Technical Services:  means any consideration (including any lump sum consideration) for the rendering of any managerial, technical or consultancy services (including the provision of services of technical or other personnel) but does not include consideration for any construction, assembly, mining or like project undertaken by the recipient or consideration which would be income of the recipient chargeable under the head “Salaries”. Explanation 2 to clause (vii) of sub-section (1) of Sec 9

Royalty: means consideration (including any lump sum consideration but excluding any consideration which would be the income of the recipient chargeable under the head “Capital gains”) for

 

  • the transfer of all or any rights (including the granting of a licence) in respect of a patent, invention, model, design, secret formula or process or trade mark or similar property
  • the imparting of any information concerning the working of, or the use of, a patent, invention, model, design, secret formula or process or trade mark or similar property
  • the use of any patent, invention, model, design, secret formula or process or trade mark or similar property
  • the imparting of any information concerning technical, industrial, commercial or scientific knowledge, experience or skill

Explanation 2 to clause (vi) of sub-section (1) of Sec 9

The professions notified under section 44AA are as under:

1. Authorised representative means a person who represents any other person, on payment of any fee or remuneration before any Tribunal or authority constituted or appointed by or under any law for the time being in force, but does not include an employee of the person so represented or a person carrying on legal profession or a person carrying on the profession of accountancy (No. 1620/F. No. 133(102)/76-TPL)

2. Film artist means any person engaged in his professional capacity in the production of a cinematograph film whether produced by him or by any other person, as (No. 1620/F. No. 133(102)/76-TPL)

  • an actor
  • a cameraman
  • a director, including an assistant director
  • a music director, including an assistant music director
  • an art director, including an assistant art director
  • a dance director, including an assistant dance director
  • an editor
  • a singer
  • a lyricist
  • a story writer
  • a screen-play writer
  • a dialogue writer
  • a dress designer

3. Profession of company secretary – [No. 9102/F. No. 225/51/92-IT(A-II)

4. Profession of information technology – (Notification No. 116/F. No. 23/FB/2001-TPL)

The services rendered by following persons in relation to the sports activities are considered as “Professional Services” for the purpose of Sec 194J:

  • Sports Persons,
  • Umpires and Referees,
  • Coaches and Trainers,
  • Team Physicians and Physiotherapists,
  • Event Managers,
  • Commentators,
  • Anchors and
  • Sports Columnists.

Source: http://law.incometaxindia.gov.in/DIT/Income-tax-acts.aspx

 

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This article is brought to you by onlineITreturn.com

For a detailed advise, you can contact info@onlineitreturn.com or visit www.onlineitreturn.com. OnlineITreturn.com is an online portal for efiling your income tax return and advise, consultancy on taxation matters including Service Tax, TDS. All taxation matters are handled by Chartered Accountants.