PAN (Permanent Account Number) is a 10 alpha-numeric identifier that is issued to all income tax payers of India. It includes both companies of the country as well as the citizens of the country. It is essentially important for identifying taxpayers for the government. It is not a proof of identity, as it is also issued to foreign nationals. It is a unique number which is valid for a lifetime of the card holder.
Why is Permanent Account Number (PAN) required?
PAN (Permanent Account Number) is required for maintaining financial transactions such as opening bank account, receiving taxable salary and high end transactions. The main purposes for issuing PAN (Permanent Account Number) number is to identify all financial transactions, keep track of payment of tax and also to prevent tax evasion.
How to apply for Permanent Account Number (PAN)?
- Go to NSDL site.
- Fill up Form 49A.
- Enter name of the company (abbreviations are not allowed, ‘pvt ltd’ should be written as ‘private limited’).
- Date of incorporation/registration has to be provided.
- Address proof.
- Valid telephone number and e-mail id to be provided.
- Status of applicant to be selected (firm in case of companies).
- Submit registration number.
- Select source of income.
- Submit the form and rectify if any errors occur.
- Payment of Rs. 107 through net banking, credit card/debit card or demand draft.
- On confirmation of payment, a 15 digit unique number is displayed. The acknowledgement page is to be saved and printed.
- Send the acknowledgement and proof of identity to the income tax office.
What documents are required to obtain Permanent Account Number (PAN)?
The only document required for a company to obtain PAN (Permanent Account Number) number is a Copy of certificate of registration of the company.
Cost for obtaining Permanent Account Number (PAN).
Government fee for issuing Permanent Account Number (PAN) is RS. 107.