A Permanent Account Number or the most popularly called PAN card is essential for opening a bank account or applying for a mobile number. This card is considered as an ID proof too for checking in at airports or railways. You need not be a tax payer to get a PAN card. The card is a necessity and all are required to file their returns even if it is zero tax. In short, anybody dealing with money transactions needs to have a PAN card.
 
Most youngsters are worried on the necessity of PAN and sometimes wonder whether it is compulsory to quote PAN on return of income. It should be kept in mind that it is compulsory to quote PAN on return of income. Income Tax department says the following must have PAN: 

a) All existing assesses or taxpayers or persons who are required to furnish a return of income, even on behalf of others, must obtain PAN. See Income Tax Act Section 139A (1) and (1A).

b) Any person, who intends to enter into financial transaction where quoting PAN is mandatory, must also obtain PAN. Income Tax Act Section 139A (5) (c) read with Rule 114B.

c) The Assessing Officer may allot PAN to any person either on his own or on a specific request from such person. See Income Tax Act Section 139A (2) and (3).

But one must remember that obtaining or possessing more than one PAN is against the law, as per Section 139A (7).

• What is PAN?:

Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department. A typical PAN is AABPS1205E. Income Tax Act Section 139A (7) (b) and (c) explains the necessity of the document.

• Is it essential to have PAN?:

It is essential to quote PAN on return of income and in all correspondence with any income tax authority. It may be noted that w.e.f. from January 1, 2005 it became mandatory to quote PAN on challans for any payments due to Income Tax Department.

According to the Income Tax Department it is also compulsory to quote PAN in all documents pertaining to financial transactions notified from time-to-time by the Central Board of Direct Taxes. For example sale and purchase of immovable property, vehicles or cash payment exceeding Rs. 25,000/-to hotels and restaurants or travelling abroad. It is also compulsory to mention PAN for obtaining a telephone or cellular telephone connection. PAN has to be mentioned for making deposits of Rs. 50,000/- or more with a Bank or Post Office. As mentioned in Income Tax rules Section 139A (5) (c) read with Rule 114B.

• It may be kept in mind that it is the constitutional responsibility of a person receiving a document relating to economic or financial transactions notified by the CBDT to ensure that PAN has been duly quoted in the document. Refer Income Tax Act Section139A (6).
• It is easier to verify whether one is pulling a fast one, while quoting PAN as the facility for PAN verification is available on the Income Tax department website.

PAN Centres:

For easy access of PAN related services, the Income Tax department has authorised UTI Investor Services Ltd (UTIISL) to manage IT PAN Service Centers in all cities or towns where an Income Tax office and National Securities Depository Limited (NSDL) exist to dispense PAN services from TIN Facilitation Centers. In bigger cities, UTIISL has set up more IT PAN Service and TIN Facilitation Centers.

Application of PAN:

PAN application should be made only on Form 49A. A PAN application (Form 49A) can be downloaded from the website of Income Tax department or UTIISL or NSDL (www.incometaxindia.gov.in, www.utiisl.co.in or  www.tin.nsdl.com ) or printed by local printers or photocopied (on A4 size 70 GSM paper). The form is also available at IT PAN Service centers and TIN Facilitation centers. A photograph is compulsory on application form for ‘Individual’ applicants.

Use internet to apply for PAN:

Application for fresh allotment of PAN can be made through Internet. Requests for changes or correction in PAN data or request for new PAN card (for an existing PAN) may also be made through Internet. For more information log on to www.tin-nsdl.com 

Tatkal PAN:

Just like other Tatkal facilities for passport and train tickets, PAN too can be allotted quickly (Tatkal). An application for allotment of PAN can be submitted through Internet and payment made by a ‘nominated’ credit card, then PAN is allotted on priority and communicated by an e-mail.

Location of the centre:

Check with your local Income Tax Office or any office of UTI/UTIISL or NSDL for locating IT PAN Service Centers or TIN Facilitation Centers or log onto www.incometaxindia.gov.in or www.utiisl.co.in or http://tin.nsdl.com for the information. 

Work of IT PAN Service Centers or TIN Facilitation Centers:

T PAN Service Centers or TIN Facilitation Centers supply the applicant with PAN application forms (Form 49A) and forms for ‘Request For New PAN Card or/ and Changes In PAN Data’, assist the applicant in filling up the form, collect filled form and issue acknowledgement slip. After obtaining PAN from the Income Tax department, UTIISL or NSDL as the case may be, will print the PAN card and deliver it to the applicant.

Be careful:  Incomplete Form 49A will not be accepted. IT PAN Service Centers or TIN Facilitation Centers are ready to help the applicants to correctly fill up form 49A or ‘Request For New PAN Card Or/ And Changes In PAN Data’, as per the need.

Documents needed along with Form 49A:  

a) Individual applicants will have to affix one recent, coloured photograph (Stamp Size: 3.5 cms x 2.5 cms) on Form 49A;

b) Any one document listed in Rule 114 must be supplied as proof of ‘Identity’ and ‘Address’; and

c) Designation and code of the concerned Assessing Officer of Income Tax department will have to be mentioned in Form 49A

Documents required as proof of ‘Identity’:

The documents needed for proving identity forIndividual applicants, including minors and HUF applicants are: 

i) Copy of school leaving certificate or matriculation certificate or degree of a recognised educational institution
ii) Depository account or credit card or bank account
iii) Water bill or ration card or property tax assessment order
iv) Passport or voter identity card or driving license
v) Certificate of identity signed by a MP or an MLA or a Municipal Councilor or a Gazetted Officer

According to the Income Tax department if the PAN applicant is a minor, any document belonging to the parents or guardian would serve as proof of Identity. If the PAN application is made on behalf of a HUF, any document belonging to the Karta of the HUF would serve as proof of Identity.

Documents required for non-individuals:

The documents needed as proof of Identity and Address for other applicants is as follows: 

i) Copy of Certificate of Registration issued by the Registrar of Companies

ii) Copy of Certificate of Registration issued by the Registrar of Firms or Copy of Partnership Deed or Copy of Trust deed

iii) Copy of Certificate of Registration Number issued by Charity Commissioner or Copy of Agreement or Copy of Certificate of Registration Number issued by Charity Commissioner

iv) Registrar of Co-operative Society or any other Competent Authority or any other document originating from any Central or State Government Department

Finding ‘Assessing Officer code’:

It is not difficult to find out about the assessing officer code. It can be obtained from Income Tax Office where one submits their return of income. All of you who would be filing their returns for the first time can find out Assessing Officer code with the help of IT PAN Service Center or TIN Facilitation Center or jurisdictional Income Tax Office.

PAN essential even if you aren’t schooled:

One need not fear if they can not sign. Like banks, even IT allows the use of Left Hand Thumb impression of the applicant on Form 49A or ‘Request For New PAN Card Or/ And Changes In PAN Data’ at the place meant for signatures. But this needs to be done under official seal and stamp of a Magistrate or a Notary Public or a Gazetted Officer.

Victory for Women:

All female applicants, including married/divorced/widow, should mention their father’s name only.

Mentioning phone number:

Mentioning the telephone number is not required, but it helps in faster communication.

PAN Status:

In case you have applied for the PAN card and want to know its status contact the Aaykar Sampark Kendra (ASK) at 0124-2438000 or log on to www.incometaxindia.gov.in and go to ‘know your PAN’ or write to pan@incometaxindia.gov.in 

The Income tax department has authorised UTIISL and NSDL to charge Rs.85 + Service Tax as applicable, per PAN application, which includes cost of a tamper proof PAN card. The money has to be paid in cash at IT PAN Service Center or the TIN Facilitation Center.

What happens if you move from one city to another:

Going by the name, it is clear that PAN is a permanent number and doesn’t change during the lifetime of a PAN holder. Changing the address or city would change the Assessing Officer and they must be intimated to the nearest IT PAN Service Center or TIN Facilitation Center for the necessary corrections. Such requests are done on a form for ‘Request For New PAN Card Or/ And Changes In PAN Data’

Guard Against: While using your PAN, don’t misspell it. Ensure that you write the number correctly. Any mistake means there would be a stiff punishment up to Rs 10,000 fine.

Lost PAN card:

Don’t worry, just move an application requesting for the issue of a duplicate PAN. But before applying for a duplicate card file an FIR at the local police station denoting the theft. Download the form online and apply with all the details of your name, date of birth, your father’s name and the lost card number. Remember to attach a stamp-sized photograph along with Rs 94 and submit at PAN application centres and the new card would be delivered in 15 working days.

Remember PAN is a necessity for all financial dealings. It also serves as an ID proof.