PAN is an all India, unique ten-digit alphanumeric number, issued in the form of a plastic-coated card by the Income Tax Department. It does not change with changes in address or place where you are being assessed. PAN number is required for all citizens who file their income tax returns with the income tax authority in India.
For obtaining PAN related information the Income Tax department has authorized :- (i) UTI Technology Services Ltd (UTITSL) to set up and manage IT PAN Service Centres in all those cities or towns where there is an Income Tax office and (ii) National Securities Depository Limited (NSDL) to dispense PAN services from Tax Information Network (TIN) Facilitation Centres.
Who shall apply for PAN:-
Income Tax Act provides that every person whose total income exceeds the maximum amount not chargeable to tax
Every person who carries on any business or profession whose total turnover or gross receipts exceed Rs.5 lakhs in any previous year or any person required to a file a return of income shall apply for PAN.
Besides, any person not fulfilling the above conditions may also apply for allotment of PAN.
How to apply for PAN:-
- Application for allotment of PAN is to be made in Form 49A.
- Application form must be typewritten or handwritten in black ink in BLOCK LETTERS.
- One recent coloured photograph is to be annexed.
- While selecting the ‘Address for Communication’, due care should be exercised as all communications thereafter would be sent at the indicated address.
- In the space given for ‘Father’s Name’. Only the father’s name should be given. Married ladies may note that husband’s name is not required and should not be given.
- Due care should be exercised to fill the correct date of birth.
- The form should be signed in English or any of the Indian Languages in the 2 specified places. In case of thumb impressions attestation by a Gazetted Officer is necessary.
Transactions in which quoting of PAN are mandatory:-
- Purchase and sale of immovable property.
- Purchase and sale of motor vehicles.
- Transaction in shares exceeding Rs. 50,000.
- Opening of new bank accounts.
- Fixed deposits of more than Rs. 50,000.
- Application for allotment of telephone connections.
- Payment to hotels exceeding Rs. 25,000.
- Provided that till such time PAN is not allotted to a person, he may quote his General Index register Number or GIR No.
- The following changes must be intimated to the assessing officer:-
- Death of an assessee.
- Discontinuation of business.
- Dissolution of a firm.
- Partition of a Hindu Undivided Family (HUF).
- Liquidation or winding up of a company.
- Merger or amalgamation or acquisition of companies..
How we can help
- We help our clients in getting their Permanent Account Number or PAN card,
- If PAN has already been issued we can help in making corrections, if required
- If card has been damaged or lost we can help the process of obtaining duplicate card
We also help in other matters like PAN for minors and NRIs. Furthermore, we offer income tax consultancy and legal consultation to our clients and have the utmost capability of representing them in judicial courts and tribunals; if any dispute arises with regard to PAN number with financial and banking institutions or monetary authorities.
TAN DEDUCTION ACCOUNT NUMBER TAN
TAN registration is required for making tax deduction or tax collection at source, remittance of TDS payments and issuance of TDS certificates.
TAN or Tax Deduction and Collection Number (TAN) is mandatory 10 digit alpha number required to be obtained by all persons who are responsible for Tax Deduction at Source (TDS) or Tax Collection at Source (TCS) on behalf of the Government. Tax deducted at source (TDS) ensures that the Government’s collection of tax is spread over the whole year and the responsibility for collecting tax is diversified. An application for allotment of TAN is to be filled in Form 49B and submitted at any of the TIN facilitation centres meant for receipt of e-TDS returns. TAN is allotted by the Income Tax Department on the basis of the application submitted to TIN Facilitation Centres managed by National Securities Depository Limited (NSDL). NSDL will intimate the TAN which will be required to be mentioned in all future correspondence relating to TDS/TCS.
The person deducting the tax at source is required to deposit the tax deducted to the credit of Central Government – quoting the TAN number. Individuals who are salaried are not required to obtain TAN or deduct tax at source. All most all for-profit entities and not-for-profit entities are required to obtain TAN including proprietorship businesses. Once a TAN is issued, it is valid for lifetime.
Such persons must deduct tax at source while making certain payment like salary, payments to contractor or sub-contractors, payment of rent exceeding Rs.1,80,000 per year, etc.
Tax Deducted at Source must be paid into authorized bank, quoting the TAN and using Challan 281. TDS during the preceding month must be paid before the 7th day of the following month. On deducting tax at source, the entity registered for TAN will issue a TDS Certificate as proof of collection of tax. However, TDS Filings must be made quarterly on the 15th day of July, October, January and May. Non-filing of TDS filings within the due date will attract a penalty.
To obtain TAN, application must be made for allotment of TAN in Form 49B along with the required supporting documents. Based on the application, the TAN will be allotted to the entity and the entity must quote the TAN in all TDS/TCS returns, TDS/TCS payment challans and all TDS/TCS Certificates.
How we can help you
- Filing registration application for TAN
- Keeping track for registration application
- Speedy retrieval of TAN registration certificate
- Filing TDS/TCS return
Quick Reference
TDS rate for different activities
| S.no | Section | Nature of Income | Amount over which | Rate of TDS | ||
| TDS to be deducted | If PAN is available | If PAN is not available | ||||
| 1 | 192 | Salary | to be seen as per slab | Average Rate | 30% | |
| 2 | 192A | Payment of accumulated balance due of | if accumulated balance | 10% | 30% | |
| Employees’ Provident Fund | is more than 50000 | |||||
| 3 | 193 | Interest on securities | 10,000 | 10% | 20% | |
| 4 | 194 | Dividend other than of 115-O | 2,500 | 10% | 20% | |
| 5 | 194A | Interest other than interest on securities | ||||
| – Interest received from Bank | 10,000 | 10% | 20% | |||
| – Interest received from others | 5,000 | |||||
| 6 | 194B | Income by way of winnings from lotteries | 10,000 | 30% | ||
| Puzzles | ||||||
| 7 | 194BB | Income by way of winnings horse race | 10,000 | 30% | 30% | |
| 8 | 194C | Payment to contractors/Subcontractors | 30000 one time | individual/HUF 1% | 20% | |
| 75000 in whole year | Others 2% | |||||
| 9 | 194D | Insurance Commission | 15,000 | 5% | 20% | |
| 10 | 194DA | payment under Life Insurance Policy | 100,000 | 1% | 20% | |
| 11 | 194E | Payment to NR Sports Person | No Limit | 20% | 20% | |
| 12 | 194EE | Payment from National Savings Scheme | 2,500 | 10% | 20% | |
| 13 | 194F | Payments on account of repurchase of units by | No Limit | 20% | ||
| Mutual Fund | ||||||
| 14 | 194G | Commission on sale of lottery tickets | 15,000 | 5% | 20% | |
| 15 | 194H | Payment of Commission or Brokerage | 15,000 | 5% | 20% | |
| 16 | 194-I | Payment of rent | ||||
| – For Land, building or furniture. | 180,000 | 10% | 20% | |||
| – For plant and machinery or equipment | 2% | |||||
| 17 | 194 IA | Payment on transfer of certain immovable | 5,000,000 | 1% | 20% | |
| property other than agricultural land | ||||||
| 18 | 194 IB | Payment of rent by individual/HUF other than | 50000 p.m | 5% | ||
| those covered under 44AB | ||||||
| 19 | 194 iC | Payment of Consideration (not being in kind) | No Limit | 10% | ||
| under Joint Development Agreement | ||||||
| Fees for professional or technical services | ||||||
| 20 | 194J | – Normally in all cases | 30,000 | 10% | 20% | |
| – person engaged only in the business of | 2% | |||||
| operation of call center (w.e.f 01/06/2017) | ||||||
| 21 | 194LA | Payment of compensation on acquisition of | 250,000 | 10% | 20% | |
| certain immovable property | ||||||
| 22 | 194LB | Income by way of interest from infrastructure | No Limit | 5% | 20% | |
| debt fund to a non resident or Foreign Co. | ||||||
| 23 | 194LBA | Certain income from units of a business trust | ||||
| – Payment to resident | No Limit | 10% | 20% | |||
| – Payment to Non-resident | 5% | 20% | ||||
| 24 | 194LBB | Income in respect of units of investment fund | ||||
| – Payment to resident | No Limit | 10% | 20% | |||
| – Payment to Non-resident | 30% | |||||
| 25 | 194LBC | Income in respect of investment in securitization | trust | |||
| – Payment to individual/HUF | No Limit | 25% | ||||
| – Payment to Others | 30% | |||||
| 26 | 194LC | Income by way of interest from Indian company | No Limit | 5% | ||
| 27 | 194LD | Income by way of interest on certain bonds and | No Limit | 5% | ||
| Government securities | ||||||
