Permanent Account Number

Permanent Account Number (PAN) is a number which is used by Income Tax Department as an identification of a person. Through this number income tax department can get every information about the assessee.

It is a 10 digit alphanumeric number which is printed on a laminated card, known as PAN card along with other details like PAN number, name of applicant, father's name, date of birth and passport size photo.

(PAN number is taking place of General Index Registrar (GIR) Number. GIR number is given by an assessing officer to assessee which also contain details of assessing officer.)

PAN number is an important part of Income Tax Return filing. According to the Income Tax Act, 1961 every person must have a PAN for filing an Income Tax Return. Under section 139A of Income Tax Act, 1961, PAN number is required for following persons:

Whose total annual income is more than the amount which is not chargeable under income tax act
Whose income through business or other profession is more than Rs. 5 lakhs
Who is filling income tax return
PAN is necessary in case of following transactions :-
Filing income tax return
Any correspondence with income tax department
Submitting challans for payment of any tax to the department
At the time of verifications of identity of assessee in income tax department

The application form requesting for the allotment of PAN (PAN Card) is given in the undermentioned link. Dowload it – copy the PAN form from surfindia.com

PAN Facilities

It is mandatory to quote PAN on return of income, all correspondence with any income tax authority. From 1 January 2005 it will be mandatory to quote PAN on challans for any payments due to Income Tax Department.
{Section 139A (5) (a) and (b)}

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. Some such transactions are sale and purchase of immovable property or motor vehicle or payments in cash, of amounts exceeding Rs. 25,000/-to hotels and restaurants or in connection with travel to any foreign country. It is also mandatory to mention PAN for obtaining a telephone or cellular telephone connection. Likewise, PAN has to be mentioned for making a time deposit exceeding Rs. 50,000/- with a Bank or Post Office or depositing cash of Rs. 50,000/- or more in a Bank.

{Section 139A (5) (c) read with Rule 114B}