PAN CARD: How to apply for your PAN Card?

Permanent Account Number(PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department, Government of India, to any "person" who applies for it or whom the department allots the number without an application.    

The legal authority for allotment and use of the new series of PAN is derived from Section 139 A of the Income-tax Act, 1961.The manner of applying for PAN is laid down in Rule 114 of the Income-tax Rules, 1962.This rule amended in 2003, also specifies the copies of documents required be submitted along with the PAN application as proof of identity and address of the PAN applicant.

PAN enables the department to link all transactions of the "person" with the department.These transactions include tax payments, TDS/TCS credits,returns of income/wealth/gift/FBT, Specified transactions, Correspondence, and so on.PAN, thus, acts as an identifier for the "person" with the tax department.

It is mandatory to quote PAN on return of income, all correspondence with any income tax authority. From 1 January 2005 it will be mandatory to quote PAN on chalans for any payments due to Income Tax Department. It is also compulsory to quote PAN in all documents pertaining to the following financial transactions. 

a. sale or purchase of any immovable property valued at five lakh rupees or more;

b. sale or a purchase of a motor vehicle or vehicle,[the sale or purchase of a motor vehicle or vehicle does not include two wheeled vehicles, inclusive of any detachable side-car having and extra wheel,attached to the motor vehicle;]

c.a time deposit, exceeding fifty thousand rupees, with a banking company;

d. a deposit, exceeding fifty thousand rupees, in any account with post office Savings Bank;

e.a contract of a value exceeding one lakh rupees for sale or purchase of securities;

f. opening a bank account;

g. making an application for installation for a telephone connection (including a cellular telephone connection);

h. payment to hotels and restaurants against their bills for an amount exceeding twenty-five rupees at any one time;

i. payment in cash for purchase of bank drafts or pay orders or banker's cheques for an amount aggregating fifty thousand rupees or more during any one day;

j. deposit in cash aggregating fifty thousand rupees or more with a bank during any one day;

k. payment in cash in connection with travel to any foreign country of an amount exceeding twenty five thousand rupees at any one time

In order to improve PAN related services, The Income Tax Department has authorized UTI Infrastructure Technology Services Ltd (UTIITSL), to set up and manage IT PAN Service Centres in all cities or towns where there is an Income Tax Office and Nationties Depository Limited (NSDL) to dispence PAN Services from TIN Facilitation Centres.For convenience of PAN applicants in big cities UTIITSL has set up more than one IT PAN Centre and likewise there are more than one TIN Facilitation centres. 

Application can be submitted at any NSDL TIN Facilitation Centres or UTIITSL PAN Service Centres or online at there websites. Application form can be freely downloaded from Income Tax Department website.Otherwise obtained from the above PAN Service Centres at maximum cost of Rs.5 per form.Obtaining from any other vendor providing such forms.Read the guidelines and instructions attach to the forms.Forms to be filled in block letters, black ink and English.Individual applicant should affix recent color photo graph.Sign only in space  provided for signature.[Source: Income Tax Department website].