PAN Application

Why do we need a PAN Card?

PAN Card is an essential document for most of us in India, not just for the purpose of filing tax returns, but many of us, use it as a form of identification, as well. Today having a PAN card has become mandatory for most people irrespective of whether they have taxable income or not.

PAN Card for Individuals

A PAN card for individuals is used to keep track and link all financial transactions that attract tax, with the IT department calculating the total taxable amount due on the basis of this data.

PAN Card for Companies

A PAN card for organizations is similar to that for individuals, with the exception that there is no photograph on the physical PAN card. Also in lieu of the date of birth mentioned on individual PAN cards, the date of registration of the company/organization is mentioned.

PAN for foreign citizens in India

PAN is an important document for foreign citizens also, who wish to undertake business in India or wish to invest in India. Procedure to obtain PAN is same as applicable for Indian citizens. However, the application is required to be filled using Form 49AA meant for foreign citizens and submitted at any of the authorized PAN Service Centre

The IT Department calculates the amount of tax the company/organization is required to pay through its various transactions, all of which now require quoting the PAN card.

PAN is to be obtained by

  1. Every person if his total income or the total income of any other person in respect of which he is assessable during the year exceeds the maximum amount which is not chargeable to tax.
  2. A charitable trust who is required to furnish return under Section 139(4A)
  3. Every person who is carrying on any business or profession whose total sale, turnover, or gross receipts are or is likely to exceed five lakh rupees in any year
  4. Every importer/exporter who is required to obtain Import Export code
  5. Every person who is entitled to receive any sum/income after deduction of tax at source
  6. Any person who is liable to pay excise duty or a producer or manufacturer of excisable goods or a registered person of a private warehouse in which excisable goods are stored and an authorized agent of such person
  7. Persons who issue invoices under Rule 57AE requiring registration under Central Excise Rules, 1944
  8. A person who is liable to pay the service tax and his agent.
  9. Persons registered under the Central Sales Tax Act or the general sales tax law of the relevant state or union territory.
  10. Every person who intends to enter into specified financial transactions in which quoting of PAN is mandatory.

Document required for PAN

a. Aadhaar card issued by the Unique Identification Authority of India having Full complete Name & Full date of birth in DD/MM/YYYY. Applicable for Individual Clients

b. Certificate Incorporation, Partnership Deed, Trust Deed, Socierty Registration Certificate, Charity Commission Registration Certificate as the case may be for other than individual clients.