What is PAN?
Any person can make an application to Income Tax Department for obtaining PAN, which is a ten-digit alphanumeric number that enables the department in linking all transactions of the PAN holder with the department. Tax payments, returns of income / wealth / gift, TDS / TCS credits, specified transactions, correspondence, etc., are some of the transactions monitored by the department. Also, it serves as a crucial ID proof.
Why is it necessary to have PAN?
Quoting PAN is mandatory for all correspondence with any income tax authority. It is also obligatory to quote PAN in all documents concerning to the following financial transactions:
- Sale or purchase of any immovable property.
- Sale or purchase of any vehicle.
- Opening a bank account.
- A time deposit with a banking company, exceeding INR 50,000.
- Payment in cash for purchase of bank drafts or pay orders or banker’s cheques for an amount aggregating INR 50,000 or more during any one day
- Deposit in cash aggregating INR 50,000 or more with a bank during any one day.
- A deposit in any account with Post Office Savings Bank, exceeding INR 50,000.
- A contract for sale or purchase of securities of a value exceeding INR 1,00,000
- Making an application for installation of a telephone connection (including a cellular telephone connection).
- Payment to hotels and restaurants against their bills for an amount exceeding INR 25,000 at any one time.
- Payment in cash in connection with travel to any foreign country of an amount exceeding INR 25,000 at any one time
The primary function of PAN is to provide all financial transactions, a universal identification key factor and indirectly prevent tax evasion by tracking all monetary transactions of high net worth individuals.
Who must obtain PAN?
We at IKON understand the importance of maintaining the accuracy of account books and keeping them tallied with supplier as well as customers. Our strong base and expertise in the domain of accounting, empowers you to address easy to intricate requirements pertaining to reconciliation of accounts in varied industry domains for different set of clients.
The following persons need to obtain PAN:
- All existing assesses or taxpayers or persons who are required to furnish a return of income, even on behalf of others, must obtain a PAN.
- Any person carrying on any business or profession whose total sales, turnover or gross receipts are or is likely to exceed INR 5,00,000 in any previous year.
- Any person, who intends to enter into financial transaction where quoting PAN is mandatory, must also obtain PAN.
- The Assessing Officer may allot PAN to any person either on his own or on a specific request from such person.
The following documents should be attached with the application form:
- Proof of identity
- Proof of address
- Photograph (For Individual applicants)
Non Residents, have the option of applying through a resident representative, or they can apply directly in case they are residents of one of the 90+ countries listed on their web site as mailing locations.
Our team has the hands on experience of obtaining PAN for our clients. We can assist you in:
- Filing the application form
- Liaising with the authorities
- Obtaining a PAN
- Addressing any queries raised by the department.
- Leave Encashment
- Staff Insurance Scheme & Policies
- Professional Tax
- Labour Welfare Fund
- Company Formation
- Trade Licenses
- Shop & Establishment Registration
- GST (Goods and Service Tax)
- IEC (International Electroelectrical Commission)
- PF (Provident Fund)
- ESI (Employees State Insurance)
- Tax Planning