Tuesday, January 29, 2008

PAN - FAQs - Part 1

What is a PAN ?

PAN (Permanent Account Number) is a Unique identification Number allotted to Income-tax Assessees by the Income-tax Department.

What are the uses of PAN ?

PAN is the sole Identity Number for Communicating with Income-tax Department. For every Income-tax Assessee , for filing his return of Income , PAN is required. Apart from the above , PAN is mandatory for making Income-tax , Advance Income-tax Payments. It is also necessary to quote the PAN in all the correspondences with the Income-tax Department. Apart from the above , now a days PAN Card is considered as a Identity Proof and has to be mandatoryly quoted in certain types of transactions (viz., ) Opening of Bank Account , Opening of Demat Account , Purchase of shares / Mutual Funds etc..,
Who has to obtain PAN ?
According to the Income-tax Act , any assessee whose Gross Total Income exceeds the amount of Income which is not chargeable to tax (Basic Exemption Limit) , which is Rs. 1,10,000/- at present (year 2007-08) is required to obtain PAN.

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