As of 2020, India witnessed a severe loss in its total revenue from Income Tax due to corporate tax evasions by MNCs amounting to a significant 57.4%. The rest, 42.6%, was lost due to private tax abuse, leading to over Rs.3 hundred thousand crore income tax loss. These figures act as a wake-up call for individuals to understand the importance of a PAN card and its application process, including new PAN card registration. This document is not just a means to curb tax evasion but is also mandatory for various financial transactions.
Understanding the PAN Card
PAN, or Permanent Account Number, is a 10-digit alphanumeric code that uniquely identifies every potential taxpayer in India. It is a mandatory document issued by the Income Tax Department to prevent tax evasion and record all financial transactions.
PAN Card: More Than Just Tax
The usefulness of a PAN card extends beyond just taxes. It serves as a significant identity proof, mandatory for several procedures. Some instances where a PAN card is necessary include:
- IT return filing
- TDS saving
- Claiming tax refunds
- Opening a new bank account
- Buying and selling immovable assets worth more than Rs.10 lakh
- Making investments in mutual funds, bonds, and stocks
- Cash deposits of over Rs.50,000 in a day
- Payment of life insurance premiums crossing Rs.50,000 in a financial year
PAN Card Eligibility Criteria
LawgicalIndia also helps understand the PAN Card Eligibility Criteria as per Section 139A of the Income Tax Act and the different types of PAN Cards based on the type of taxpaying entity the following entities qualify for PAN card eligibility:
- Every working individual with a yearly income exceeding the non-taxable income limit.
- A business owner earning more than Rs.5 lakh yearly.
- Every Hindu Undivided Family (HUF), where the Karta or family head is the signatory.
- Any company, whether a sole proprietorship, LLP, AOP/BOI, etc.
- Any charitable organisation, trust, or association.
Types of PAN Cards
When going for a new pan card registration, one can see that PAN cards are divided into categories based on the type of taxpaying entity, identifiable by the 4th character of every PAN:
- G: Government Agency
- P: Individual
- C: Company
- A: Association of Persons (AOP)
- E: Limited Liability Partnership (LLP)
- B: Body of Individuals (BOI)
- F: Partnership Firm
- T: Trust
- H: Hindu Undivided Family (HUF)
- L: Local Authority
The PAN Card Registration in India - Online and Offline Procedures
Applying for a new PAN card registration in India has been made simpler by providing online and offline PAN card registration modes. The PAN card registration online can be completed by visiting the official portal of UTIITSL or NSDL and following the step-by-step guide provided. Offline registration involves:
- Visiting any district-level PAN agency.
- Filling in all mandatory fields on the PAN card application form.
- Attaching all required documents and making the necessary payment.
Required Documents for PAN Card
The needed documents to apply for a PAN card vary depending on the taxpaying entity. These documents include ID proof, address proof for individuals, and Registration Certificates for Companies, AOP, LLP, Trusts, etc.
Checking Application Status
You can check your new pan card registration status on the official NSDL portal using your 15-digit acknowledgement number.
Information on a PAN Card
The PAN card contains essential information, including the cardholder's name, father's name, date of birth, 10-character PAN number, cardholder's photograph and signature.
Advantages of Having a PAN Card
Identity Proof:
The PAN card is accepted as valid identity proof all across India and for all significant financial transactions.
Regulation of Financial Transactions:
With the PAN card, all significant financial transactions are recorded by the Income Tax Department. This helps to stop tax evasion and ensure fiscal responsibility among citizens.
Ease in Filing Income Tax Returns:
A PAN card makes filing income tax returns easier.
Ease in Opening Bank Accounts:
A PAN card is vital for opening a new bank account in India.
Ease in Purchase and Sale of Property:
A PAN card is required for purchasing and selling properties valued above Rs.10 lakh.
Ease in Investment:
A PAN card is mandatory whether it's investing in securities, mutual funds or bonds.
Penalty for Not Having a PAN Card
As per Section 272B of the Income Tax Act, 1961, the fine for not having a PAN card while executing transactions where it is mandatory is a fine of Rs.10,000.
Conclusion
The PAN card registration online is a vital tool for tax administration in India. It aids in keeping track of all taxable income, prevents tax evasion, and serves as a unique identification for all financial transactions of the cardholder. Understanding its significance, requirements, and application process is important for every citizen. Remember that tax evasion is not only a legal offence, but it also harms the economic growth and development of the country. Being a responsible taxpayer can contribute significantly to the nation's progress.
Lawgical India emphasises the importance of online PAN card registration, a vital tool for tax administration in India. It aids in keeping track of all taxable income, prevents tax evasion, and serves as a unique identification for all financial transactions of the cardholder.
Here at LawgicalIndia, we are always ready to answer your queries. Here are some frequently asked questions:
Q: What is the cost associated with applying for a PAN card?
A: The application cost for a new PAN card registration online varies based on your address. For applications associated with an Indian address, the fee is Rs.93; for those linked to a foreign address, the charge is Rs.864. These fees do not include GST.
Q: What is the estimated time frame for delivering the new PAN card registration post application?
A: Per the information provided on the NSDL portal, the entire process, which includes printing and dispatching the PAN card, can take approximately 14 working days.
Q: Can you provide the specifications for the photo size required during online PAN card registration?
A: Certainly, the photo submitted for the online registration of a new PAN card registration for individual entities should not surpass a resolution of 132.28 pixels x 94.49 pixels and should have dimensions of 3.5 cm x 2.5 cm.
Q: Which payment methods are acceptable for the online application of a PAN card?
A: During the online application process for a new PAN card registration, you have the flexibility to pay the required fee through various methods, including net banking, debit/credit card, or via a demand draft.
