PAN Card – What is PAN ?

A PAN (Permanent Account Number) is a 10-digit alphanumeric number which is alloted by the Income Tax Department to all the taxpayers, and is unique for each taxpayer. Using the PAN, all information related to tax for a person is recorded against a single PAN number allotted specifically to that taxpayer which acts as the primary & basic key for maintenance and retrieval of information.

Frequently asked questions on PAN (Permanent Account Number)

Having a PAN helps you in dealing with the Income Tax Department as well as with other Govt. Organisations.
  • It is an all India, UNIQUE Number of 10 CHARACTERS allotted by the Income Tax Department.
  • It is PERMANENT for your life and will not change with change of your address or station or change of your Assessing Officer, etc.
  • PAN under the new series is being issued to replace old PAN or GIR No.

The PAN number is issued in the format like:

AAB P S 8791 R and a PAN card looks like the following:

  • Individuals
  • Hindu Undivided Families
  • Companies
  • Partnership Firms
  • Association of Persons
  • Body of individuals
  • Trusts
  • Artificial Juridical Persons
  • Representative Assesses
  • an Income Tax Payer, or
  • a person carrying on business or profession whose total sales or turnover or gross receipt exceeds Rs. 5 lacs (Rs. 500,000), or
  • a trust
  • Any other person
  • You may file an application in Form No. 49A, which is available at all Income-tax offices or click here to download the form.
  • While making an application in Form 49A you must fill in your
  1. Full name (Initials must be expanded)
  2. Date of Birth (in case of individuals)
  3. Date of incorporation or formation, etc. (in case of companies or firms etc.)
  4. Father's full name (in case of individuals)
  5. Married woman should give their father's full name with expanded initials
  6. In case of non-Indian passport holder, the applicant shall have to get his/her ID and address proofs attested by the Indian embassy in the home country.
  • To your Assessing Officer, if already assessed to tax
  • To the Assessing Officer dealing with new taxpayers, if you were not assessed to tax earlier
  • Or Can simply submit the duly filled form at our office
  • In case of Individuals
  1. PAN
  2. Name
  3. Date of Birth
  4. Father's Name
  5. Photograph and
  6. Signature of PAN holder
  • In case of Other Taxpayers
  1. PAN
  2. Name and
  3. Date of Incorporation or Formation
NO. A person can have only one PAN under the new series. If you have already been allotted a PAN under the new series, you cannot or shall not again apply for or obtain or possess another PAN. Failure in this regard shall result in imposition of penalty which shall not be less than Rs. 500/- but which may extend to Rs. 10000/- for each such failure or default.
Every person to whom a PAN is allotted is required to quote the same in:
  • all his returns to, and/or correspondence with, any Income Tax Authority
  • all challans for payment of direct taxes
  • application for opening an account with a Bank
  • application for installation of a telephone connection (including a cellular telephone)
  • documents pertaining to sale or purchase of a motor vehicle
  • documents pertaining to sale or purchase of immovable property valued at Rs. 5 lacs (Rs. 500,000) or more
  • documents pertaining to a time deposit exceeding Rs. 50,000/- with a Bank
  • documents pertaining to deposits exceeding Rs. 50,000 in any account with a Post Office Savings Bank
  • documents pertaining to a contract of a value exceeding Rs. 10 lacs (Rs. 1 million) for sale or purchase of securities (shares, debentures etc.)
  • payment to hotels & restaurants against their bills for an amount exceeding Rs. 25,000/- at any one time; Every person receiving any document relating to above
  • If tax is being deducted at source on payment of salary, rent, interest etc., it will be in your interest to give your PAN under the new series to the tax deductor so that the same could be mentioned in the TDS Certificate and Annual Return of TDS. This will help you in getting credit for taxes deducted at source.

You need not apply for a fresh PAN under the new series. You must, however, intimate your Assessing Officer for transfer of your PAN and other records to your new Assessing Officer.

What is TAN ?

All persons who are responsible for deducting or collecting tax at source are required to obtain a unique 10-digit alphanumeric number, known as the TAN (Tax Deduction and Collection Account Number).

Persons liable to apply for TAN
As discussed above, every person liable to deduct tax at source or collect tax at source is required to obtain TAN. However, a person required to deduct tax under section 194-IB or section 194M shall not be required to obtain tax deduction account number (TAN).

Quoting of TAN

It is mandatory to quote TAN in the following documents:

  1. TDS returns
  2. TCS returns
  3. Statement of financial transactions or reportable accounts
  4. Challans for payment of TDS/TCS
  5. TDS/TCS certificates
Documents required for TAN Registration :

Tan allotment application doesn’t require any documents in specific however if online application is chosen the acknowledgement form needs to be downloaded, signed and forwarded to NSDL through post.

Checking the Status of TAN Application

After the applicant has successfully submitted the TAN application, the status of the application can be viewed after three days using the 14-digit acknowledgement number.

GST Registration

Goods and service tax is an indirect form of tax levied on most goods and services. It Is ultimately paid by the customer which is remitted to the government by the sellers of goods and services.

Who Needs to register for GST?

In case of Supply of Goods: Businesses whose turnover exceeds Rs. 40 lakhs *(Rs 10 lakhs for some states) are required to obtain GST registration

In case of Supply of Services: Turnover limit is Rs 20 lakh, and in case of special category States, Rs 10 lakh.

Mandatory GST Registration for the following businesses:
  1. Usual taxable person / Input Service Distributor (ISD)
  2. Non-resident taxable person
  3. Inter-state supplier of goods and services
  4. Supplier of goods through an e-commerce portal 
  5. Any service provider
  6. Liable to pay tax under the reverse charge mechanism
  7. TDS/TCS deductor
  8. Online data access or retrieval service provider.
Documents required for GST Registration:
  1. Copy of the Aadhar card
  2. Proof of business registration or incorporation certificate
  3. Permanent Account Number (PAN) of the applicant
  4. Identity and address proof of promoters/directors with a photograph
  5. Authorisation letter/board resolution for authorised signatory
  6. Bank account statement/cancelled cheque
  7. Digital signature.

MSME Registration

MSME stands for Micro, Small & Medium Enterprises. It is applicable for all the applicants who fall under either one of the below categories:

Sector Micro Small Medium
Manufacturing < Rs.25 lakh < Rs.5 crore < Rs.10 crore
Services < Rs.10 lakh < Rs.2 crore < Rs.5 crore
Advantages OF MSME Registration:
  1. Subsidy on Patent Registration
  2. Overdraft Interest Rate Exemption
  3. Industrial Promotion Subsidy
  4. Protection against Payments (Delayed Payments) ...
  5. ISO Certification Charges Reimbursement.
  6. Bank Loans (Collateral Free)
Documents Required for MSME Registration:
  1. Aadhar number of the applicant
  2. Name, gender, PAN number, email id, and mobile number of the applicant.
  3. PAN, location, and address of the organization.
  4. The number of employees and the date, you are planning to start your business.
  5. Bank account number and IFSC code
  6. The basic business activity of the enterprise
  7. NIC 2-digit code
  8. Investment in plant and machinery/equipment
  9. MoA and AoA
  10. Copies of Sales Bill and Purchase Bill.

What is an Importer -Exporter Code ?

Importer -Exporter Code (IEC) is a 10 digit identification number that is issued by the DGFT (Director General of Foreign Trade), Department of Commerce, Government of India.

Who Needs to obtain an IEC ?

Companies and businesses who wish to start a business that deals with import and export in the Indian Territory.

Why is IEC Code required ?
  1. Custom Authorities need IEC to clear shipments during imports.
  2. For the bank transfer of money when imports are made.
  3. For export shipments.
  4. When exporter is supposed to receive money in foreign currency, IEC code is required to transfer the money to his account directly.
Which types of business entities are eligible to apply for an IEC ?

Any of the following are eligible to apply for an IEC Code:

  1. Proprietorship
  2. Partnership
  3. LLP
  4. Limited Company
  5. Trust
  6. HUF
  7. Society