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Why we need PAN

BINU.M.S (MCOM MBA ICWAI-Inter(Studying)) (197 Points)

11 June 2009

Dear Friends

Please tell me why an ordinary person requires PAN

What are the benefits obtained by him by receiving a PAN

Please Share Your Ideas

Thanks In Advance

BINU.M.S

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9 Replies

Sourabh Sharma (CS CA (Final) M.com NCFM Derivative Capital Market Mutual Funds) (771 Points)
Replied 11 June 2009

AN (Permanent Account Number) is a 10 digit code number assigned by the department of IT (Income Tax) in India.

Quoting the pan card number is mandatory for filing income tax returns in India.

Quoting pan card number is mandatory according to income tax act for the following transactions in india.

Registration of property documents for transfer of property.

Purchase of vehicles in india.

Cash payment of bills at hotels and restaurants exceeding Rs.25,000/- while traveling abroad.

Bank cash transactions like deposits and post office deposits above Rs.50,000/-

An individual can hold only one pan card.

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Aditya Maheshwari (CA in Practice) (35867 Points)
Replied 11 June 2009

Also you need to have a PAN card for trading in shares and other securities

GURVINDER SINGH (ACCOUNTS MANAGER) (231 Points)
Replied 11 June 2009

government can see our transaction whether we are not stealing income tax

CA. Amit Daga (Finance Controller CA. CS. CFA. CIFRS. M.COM. ) (9017 Points)
Replied 12 June 2009

PAN is ur identification number for income tax purpose

sankar024 (Finance Professional) (35 Points)
Replied 12 June 2009

PAN card is must, for all at present. if u r feel that ur income is come to the limit under tax then it is must. now a days almost all transaction the PAN is must.

once any one got the card then plz keep practice to file the income tax return even nil

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BINU.M.S (MCOM MBA ICWAI-Inter(Studying)) (197 Points)
Replied 12 June 2009

Originally posted by :sankar024
"	PAN card is must, for all at present. if u r feel that ur income is come to the limit under tax then it is must. now a days almost all transaction the PAN is must. once any one got the card then plz keep practice to file the income tax return even nil	"

After reading all the replies my only doubt now is that is it necessary for a person to file income tax return although his income is very low ,that means he does not have to pay any tax but merely holding a PAN Card does he required to file Income Tax Return.I have certain doubts over Mr.Sankars reply......

Please Share Your Ideas

Thanks In Advance

BINU.M.S

Aditya Maheshwari (CA in Practice) (35867 Points)
Replied 12 June 2009

What Sankar has said is if you have a PAN then keep a practice to file income tax return even NIL. What he maens is that if you have a PAN card the IT department can issue a notice if you have not filed your return to file the same. So you may have to file it afterthat. So even for the sake of continutiy file returns. If you income is below taxable limits and you think u will not enter into any transactions above then dont keep a PAN. But very sooner or later PAN will become like your Identity card and may be required in every transaction. So keep a PAN card before it eventually happens.

Yogesh Shah (Managing Corporate Finance) (1051 Points)
Replied 13 June 2009

It is not necessary to file ITR (Income Tax Return) if you don't have taxable income, even if you have PAN. If your income exceeds basic exemption limit, then you will be required to file ITR. In such a case, if you don't have PAN, then first you have apply for PAN in Form 49A (which can be downloaded from Income Tax website - www.incometaxindia.gov.in). Then quote that PAN in your ITR. If you have any query regarding how to fill ITR, tell me, I will resolve it.