Permanent Account Number (PAN)

Obligation to apply for Permanent Account Number (PAN) - section 139A.

With a view to check tax evasion, as also to facilitate tax administration, it has been made obligatory for assesses to get allotted Permanent Account Numbers from the Income Tax Department. For this purpose, those who have not been allotted Permanent Account Numbers so far and who estimate their income for the year to be more than the maximum amount not chargeable to Income Tax (the present limit is Rs. 50,000/-) or whose turnover / gross receipts in business / profession are or are to exceed Rs.5,00,000/- likely are required to apply for allotment of Permanent Account Numbers in the prescribed form (Form No. 49A) to the Assessing officer having jurisdiction over the person. A specimen application of Form no. 49A is given in Annexure 49. W.e.f. 1-6-2000, the government may notify any class of persons such as importers,exporters, etc.. whether tax is payable by them or not, requiring them to apply for PAN.

PAN is a 10 digit code allotted to each assesses by I.T. Dept.

Following Assesses should own or obtain PAN :

1. Every person whose total Income exceeds the Taxable Limit.

2. Every Business or Profession whose total Sales, Turnover, or Gross receipts exceed Rs. 5 Lakhs.

3. Every person shall quote his PAN or GIR in all documents pertaining to :

a) Who Sales / Purchases any immovable property worth Rs.5 Lakhs or more.

b) Who Sells or Purchases Motor Vehicle or Vehicle which require registration.

c) Who opens a Time Deposit Account with Banks / Post Offices exceeding Rs. 50,000

d) Who deposits amount exceeding Rs.50,000 in Post Office Savings Bank.

e) Who Sales or Purchases Securities exceeding Rs. 1 Lakh.

f) Who opens a Bank Account * .

g) Who makes payment to Hotels & Restaurants against bills exceeding Rs.25,000 at a time.

h) Who wants to purchase DD/Pay Order/ Banker’s Cheque by payment of cash aggregate Rs. 50,000 or more during any one day from a Bank.

i) Payment in cash exceeding Rs.25,000 in connection with Foreign Travel.

j) Payment of an amount of Rs.50,000 or more to buy Mutual Fund, Shares, Debentures or Bonds.

* Those not having PAN/GIR No. can submit a simple declaration in Form No. 60/61.

Any person who has not been allotted PAN/GIR No. and who makes payment in cash otherwise than by way of A/c payee Cheque or Draft or issued by any Bank in respect of any of the above listed transaction, should file a simple declaration in Form No. 60 giving the particulars of the transaction.

Due Dates for filing of Returns of Income

I Where the assessee is a Company - 31st October of the Assessment year.

II Where the assessee is a person other than a company :-

a) where accounts of the assessee are to be Audited or 2.a working partner of a firm whose accounts are required to be audited under the Income Tax Act or any other law - 31st October of the Assessment Year.

b) Where the return has to be filed under the one-by-six criteria - 31st October of the Assessment Year.

c) Any other assessee - 31st July of the Assessment Year

Consequences of not Filing or Late Filing of Income Tax Returns

Where the assessee has defaulted in timely furnishing of his return of income, then penal interest is chargeable for Non/Late filing of return.

Interest Calculated by IT Department for Late or Non-Furnishing of Return -

For defaults in furnishing Return of income - Simple interest @ 1.25% for every month orPart of a month from the due date of filing of the Return to the date of furnishing of the return. The interest is calculated on the amount of the tax on the total assessed income as determined under sub-section (1) of section 143 or on regular assessment u/ s 143(3) as reduced by the Advance Tax , if any, paid and any tax deducted or collected at source.

Forms of Return of Income , Choosing the Right Form

ITR1 - Income Tax Return Form for Individuals having Income from Salary/ Pension/ family pension & Interest

ITR2 – Income Tax Return forms for Individuals and HUFs not having Income from Business or Profession.

ITR3 - IT Return Forms for Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship.

ITR4 - Income Tax Forms for individuals & HUFs having income from a proprietary business or profession.

ITR5 - New Tax Returns Form for firms, AOPs and BOIs.

ITR6 - IT Forms for the purpose of filing returns for Companies other than companies claiming exemption under section 11.

ITR7 - Form for persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) .

ITR8 - IT Forms for Return for Fringe Benefits.

ITR V - Where the data of the Return of Income/Fringe Benefits in Form ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 & ITR-8 transmitted electronically without digital signature .

The Return of Income (Eligibility) - Sec. 139

The Return of Income (Eligibility) - Sec. 139

(i) is in occupation of an immovable property exceeding a specified floor area, whether by way of ownership, tenancy or otherwise, as may be specified by the Board in this behalf; or

(ii) is the owner or the lessee of a motor vehicle other than a two-wheeled motor vehicle, whether having any detachable side car having extra wheel attached to such two-wheeled motor vehicle or not; or

(iii) is a subscriber to a cellular telephone not being a wireless in local loop telephone; or

(iv) has incurred expenditure for himself or any other person on travel to any foreign country; or

(v) is the holder of a credit card, not being an "add-on" card, issued by any bank or institution; or

(vi) is a member of a club where entrance fee charged is twenty-five thousand rupees or more,

shall furnish a return, of his income during the previous year, on or before the due date in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed (Read Section 139 of Income Tax Act)