PAN card
jyotirmaya behera
(Querist) 11 May 2010
This query is : Resolved
now days PAN card is very necessary. even student also using PAN card. some one told me that who will use PAN card they r bound to pay income tax or who have no more income then 1,60,000 they will file return file. there have any law that who will use PAN card they will pay income tax to govt?
if is it true then who are student what they will do? is it crime who dont give income tax or return file?
A V Vishal
(Expert) 12 May 2010
"some one told me that who will use PAN card they r bound to pay income tax or who have no more income then 1,60,000 they will file return file."
It is a myth, however, recently the department has started sending letters to PAN card holders, in any case you can respond to the notice appropriately.
1. 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.
{Section 139A(7) Expln (b) and (c)}
2. Why Is It Necessary To Have PAN?
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}
3. How does Income Tax Department ensure that PAN is quoted on transactions mentioned above?
It is statutory responsibility of a person receiving document relating to economic or financial transactions notified by the CBDT to ensure that PAN has been duly quoted in the document.
{Section139A (6)}
4. Is it compulsory to quote PAN on return of income?
Yes, it is compulsory to quote PAN on return of income.
5. How will these authorities verify PAN?
A facility for verifying PAN is available on the website of the Income Tax department.
6. Who must have a PAN?
i. All existing assesses or taxpayers or persons who are required to furnish a return of income, even on behalf of others, must obtain PAN.
{Section 139A (1) and (1A)}
ii. Any person, who intends to enter into financial transaction where quoting PAN is mandatory, must also obtain PAN.
{ Section 139A (5) (c) read with Rule 114B}
iii. The Assessing Officer may allot PAN to any person either on his own or on a specific request from such person.
{Section 139A (2) and (3)}
7. Can a person obtain or use more than one PAN?
Obtaining or possessing more than one PAN is against the law.
{Section 139A (7)}
soumitra basu
(Expert) 12 May 2010
Do not go on rumours. Go on actual facts and legal points. If a person other than company and firm do not have income in excess of marginal amount chargeable to tax he need not pay income tax and return. What you have heard is incorrect.
G. ARAVINTHAN
(Expert) 12 May 2010
The very fact you said is wrong.
Is it compulsory for any person, who possessing a driving licence to drive the vehicle daily. like that PAN holders can use whenever they need
Kumar Thadhani
(Expert) 12 May 2010
I agree with all experts as above otther than it proves to act as PHOTO-IDENTITY which is recognize by all government deptts, banking , financial institutions etc..
Sumit Batra
(Expert) 13 May 2010
No, having a PAN Number doesnt mean one has to file Income Tax Returns. Returns are to be filed only when you exceed the threshold of non taxable amount.
Vineet
(Expert) 13 May 2010
Do agree with all the above experts. It is not crime or violation of law if an individual or HUF does not file return of income in a situation where the taxable income is less than the minimum thrashhold.
Saurabh Bansal
(Expert) 15 May 2010
I agree with the experts....
and i lyk the comment of mr. aravinthan..
There are provisions regarding this ( 139A)
there are provisions as to who shall get a PAN..
there are rules as to who shall file a return..
these two provisions are separate and do not have any relation...
but people can voluntarily get a PAN...
and can voluntarily file a return...
