income tax

Essential Guide to Applying for PAN: Eligibility, Requirements, and Process

Who Needs to Apply for PAN?

Individuals required to apply for a Permanent Account Number (PAN) using Form 49A include:

  • Individuals whose assessable income exceeds the maximum limit that is not subjected to tax.
  • Professionals or business owners whose total sales or turnover is expected to exceed Rs 5,00,000 within a financial year.
  • Individuals mandated to submit a tax return as per sub-section (4A) of section 139 of the Income Tax Act.
  • Employers who must report fringe benefits tax.
  • The Central Government can designate specific classes of persons liable to pay tax under the Income-tax Act or under any prevailing law through notifications.

Key Points to Remember When Filling Out the PAN Form (Form No. 49A)

Filling out the PAN form (Form 49A) requires attention to detail. Corrections or overwriting are not permitted, and the form must be accurately signed and verified by an authorized individual according to the Income Tax Act provisions. Important guidelines include:

Name and Address

  • Use block letters for both name and address.
  • Leave one blank space after each word.
  • Avoid using initials; provide the full name.

Status

  • Accurately fill in the code number corresponding to the applicant’s status or residential classification.

Date of Birth

  • Ensure the date of birth is correctly entered as it is crucial for identification.

Father’s Name

  • The name of the applicant’s father must be included, even for married women.

Sources of Income

  • Applicants must check the relevant box indicating at least one source of income to qualify for a PAN.

Additional Requirements for Companies

If registering as a company, include the following details:

  • ROC registration number.
  • Company's date of incorporation.
  • Date business operations commenced.
  • Description of primary business activities.

Verification

The verification section must be signed by the authorized signatory. Ensure that all details such as name, assessment year, capacity, place, and date are filled out correctly. Note that providing false information can lead to prosecution under Section 277 of the Income-Tax Act.

Who Can Sign and Verify the PAN Form?

  • Individuals: Must sign personally. If mentally incapable, a guardian or competent person may sign.

  • Absence: If unable to sign due to being abroad or other reasons, a Power of Attorney may authorize someone to sign on their behalf. A certified copy of the Power of Attorney must be attached.

  • Hindu Undivided Family: The Karta can sign. If absent, any adult family member may sign.

  • Companies:

    • Residents: Signed by the Managing Director or an alternative director if the Managing Director is unavailable.
    • Non-Residents: Must be signed by the holder of a valid Power of Attorney, which should be attached.
    • Wound-Up Companies: Signed by the Liquidator or Principal Officer.
    • Firms: By the Managing Partner or any other partner if the Managing Partner cannot sign.
    • Local Authorities: By the Principal Officer.
    • Associations of Persons: By any member or the Principal Officer.

Where to Submit the PAN Form

PAN applications can currently be filed at UTIISL counters along with the following documents:

  1. Two stamp-sized photographs (for individuals).
  2. Proof of identity, proof of residence, and proof of date of birth.
  3. Payment of a fee of Rs. 94 (for the application form).

Once submitted, the high-security PAN card will be issued within 15 days. An expedited service, called the Tatkal Scheme, is available for urgent cases, allowing PAN issuance within 2 days for a fee of Rs. 150.

For current status queries regarding PAN allotment, individuals can contact the PAN query center or the Public Relations Officer at the Income Tax Offices. Further information is accessible on the official website: www.incometaxindia.gov.in.

In cases of an assessee moving from one region to another, the transfer must be reported at the original location with a request to update the PAN to the new region.

When Can the Assessing Officer Issue PAN Suo Moto?

The Assessing Officer has the authority to allocate a PAN to any individual liable for tax payment. Since June 1, 2006, individuals who are registered under the Central Sales Tax Act (CST) or general sales tax law must apply for a PAN before making an application under those laws.