PAN is a unique, 10-character alpha-numeric identifier, issued to all judicial entities identifiable under the Indian Income Tax Act, 1961. The PAN is mandatory for a majority of financial transactions such as opening a bank account, receiving taxable salary or professional fees, sale or purchase of assets above specified limits etc.; especially high-value transactions.
FAQ on PAN Registration:
Who can apply for PAN?
- All existing assesses or taxpayers or persons who are required to file a return of income, even on behalf of others, must have a PAN. Any person, who intends to enter into economic or financial transactions where quoting PAN is mandatory, must also have a PAN.
Who can apply on behalf of minor, lunatic, idiot, mentally retarded, deceased and wards of court?
- Section 160 of IT Act, 1961 provides that a minor, lunatic, idiot, mentally retarded, deceased, wards of court and such other persons may be represented through a Representative Assesses. In such cases,
- In the application for PAN, details of the a minor, lunatic, idiot, mentally retarded, deceased, wards of court, etc. should be provided.
- Details of representative assessee have to be provided in item 14 of the application for PAN.
Is it compulsory to quote PAN on ‘return of income’?
Can I have more than one PAN?
- No. Obtaining/possessing more than one PAN is against the law and may attract a penalty up to 10,000. Therefore, it is advisable not to obtain/possess more than one PAN.
What are the documents to be submitted for PAN Application form?
- Proof of Identity
- Proof of Address
- Proof of Date of Birth