What Is Permanent Account Number?
Income tax PAN is issued under section 139A of Income Tax Act; 1961.It is issued by INCOME TAX DEPARTMENT under supervision of Central Board of Direct Tax. PAN is an account code for a PERSON. (I.e. Individual, HUF, Partnership Firm, Company and other judicial person.)
What Is The Structure Of Permanent Account Number?
It is a 10-digit Alpha-Numeric identity. e.g.XXXP2091X
What Is The Purpose Of PAN?
Purpose of PAN is to bring Universal account to all financial transactions and to keep track on Monetary Transactions.
Is PAN Mandatory?
Obtaining PAN is Optional. PAN is mandatory when filing Income Tax returns, tax deduction at source, or any other communication with Income Tax Department. And also mandatory in document for opening a new bank account, purchase or exchange of foreign currency, bank deposits above Rs.50,000, purchase and sale of immovable properties, vehicles etc.
What Documents Are Required For PAN?
Following documents shall be submitted along with form with prescribed fees-
- 2 Recent passport size color photographs( In case of Individual Applicant),
- Proof of identity(For individual-Aadhaar/Voting Card),
- Proof of Address
- For individual- Telephone bill/Electricity Bill
- For Company- Certificate of Incorporation
- For Partnership Firm/LLP- Partnership Deed
- Date of Birth /Incorporation
What Is The Validity Of PAN?
PAN is valid for lifetime of holder throughout India.
What Is The Penal Provision For Non Compliance?
Failure to comply with the provisions of Section 139A of Income Tax Act, penalty of Rs.10, 000 for each default is payable U/s 272B to the Assessing Officer.