PAN Full Form

The Permanent Account Number, commonly known as the PAN, identifies different types of taxpayers in the nation. PAN is a 10-digit alphanumeric number that is issued to Indians.

What is the PAN?

PAN is an abbreviation for Permanent Account Number. The Income Tax Department issues PANs, which are ten-digit alphanumeric numbers that are unique. PANs are provided in a laminated plastic card that may be scanned (commonly known as a PAN card). PAN allows the department to connect all of the assessee’s dealings with the department in one place. Tax payments, TDS/TCS credits, income tax returns, defined transactions, communication, and so on are examples of these types of transactions. It makes it simple to retrieve information about the assessee and link different investments, borrowings, and other commercial operations.

In addition, the PAN Card is vital for taxpayers since it is required for all financial activities and serves as a means of tracking the input and outflow of your money. It is important to be accurate when paying income tax, collecting tax refunds, and receiving correspondence from the Income Tax Department.

As part of the Indian Budget 2019, it was suggested that people who do not have a PAN might use their Aadhaar number to file returns and for any other purpose for which a PAN was previously required. The result is that if you do not have a pan number yet but do have an Aadhaar number, there is no need to connect your pan number and Aadhaar number or register for a new pan number at this time. On the other hand, the regulations governing this are still being developed, updated, and approved.

PAN continues to be required for a huge number of monetary transactions in the United States. In addition, the PAN Card acts as a form of identification. Following are some of the purposes and benefits of having a personal identification number (PAN).

How to Apply for a Permanent Account Number (PAN)

An application for a PAN Card may be submitted online using one of the websites listed below:

UTIITSL

Protean eGov Technologies Limited (previously NSDL).

You may also submit an application in person at any PAN agency at the district level. You can apply for a new PAN and make corrections or changes to existing information. You may even request a duplicate PAN Card or have the card reprinted if you misplace your original PAN Card.

Indian nationals and non-resident aliens (NRIs) (including corporations, non-governmental organisations, partnership businesses, municipal governments, trusts, and other organisations) must complete Form 49A. Form 49AA is required for foreign nationals and foreign corporations. These forms should be sent to the Income Tax PAN Services Unit for review and processing with the requisite PAM documentation.

You can follow the progress of your PAN application by using the acknowledgement number you get after applying to a new or duplicate PAN or after requesting adjustments or amendments.

It takes around two weeks or 14 days to complete the full process of producing and delivering cards, according to the Protean eGov Technologies Limited website (previously known as NSDL).

Eligibility for a PAN Card

Taxpaying entities that are obliged to have a Permanent Account Number under Section 139A of the Income Tax Act include the following organisations:

Anyone who has paid or is due to pay tax to the Income Tax Department is referred to as a taxpayer. The tax slabs will determine this.

Any individual engaged in a business or professional activity that generates an annual turnover of more than Rs.5 lakh in any calendar year of assessment is subject to this tax.

Importers and exporters who are required to pay any type of tax or tariff charges under the Income Tax Act or under any other applicable legislation

Trusts, philanthropic organisations, and associations of all shapes and sizes.

All tax-paying entities – including minors, people, HUFs, partnerships, corporations, groups of persons, trusts, and others – should apply for a PAN (Personal Account Number).

Conclusion

The idea of a PAN, or taxpayer-identification number, is not new. Several comparable utilities are utilised for tax reasons. This is a 10-digit number assigned to persons and companies required to collect or deduct tax on payments made under the Income Tax Act. TAN (Tax Deduction and Collection Account Number) is required on TDS, or Tax Collected at Source (TCS) challans and certificates. Failure to quote the TAN carries a Rs 10,000 charge. A TIN (Taxpayer Identification Number) is an 11-digit number used to identify VAT-registered traders. A TIN is required by law for all producers, merchants, and dealers.