PAN stands for Permanent Account Number. PAN is a ten-digit unique alphanumeric number issued by the Income Tax Department. PAN is issued in the form of a laminated plastic card (commonly known as PAN card). Given below is an illustrative PAN is
ALWPG5809L

As per new regulatory norms, both resident & non-residents Indians; including international companies with or without any presence in India, are required to provide a copy of their PAN card while carrying financial or business transactions; like: opening bank accounts, filing taxes, buying or selling real estate, etc to name a few.

A PAN has been made compulsory for every transaction with the Income-tax Department. It is also mandatory for numerous other financial transactions such as opening of bank accounts, in bank account, deposit of cash in bank account, opening of Demat account, transaction of immovable properties, dealing in securities, etc. A PAN card is a valuable means of photo identification accepted by all Government and non-Government institutions in the country

<>p>Yes, NRIs can apply for PA without having to come to India or without having an address in India.

PAN is to be obtained by following persons:

1. Every person if his total income or the total income of any other person in respect of which he is assessable during the previous year exceeds the maximum amount which is not chargeable to tax.
2. Every person who is carrying on any business or profession whose total sale, turnover, or gross receipts are or is likely to exceed five lakh rupees in any previous year
3. Every person who intends to enter into specified financial transactions in which quoting of PAN

1. Vehicle Purchases: Sale or purchase of motor vehicles (excluding two-wheelers).
2. Bank Accounts: Opening bank accounts (except time deposits and Basic Savings Bank Deposit Accounts).
3. Demat Accounts: Opening demat accounts with depositories, participants, or custodians.
4. Mutual Fund Investments: Payments exceeding Rs. 50,000 for purchasing mutual fund units.
5. Debentures and Bonds: Payments exceeding Rs. 50,000 for acquiring debentures or bonds.
6. Cash Deposits: Cash deposits exceeding Rs. 50,000 in a single day with banks or co-operative banks.
7. Time Deposits: Time deposits exceeding Rs. 50,000 or aggregating to more than Rs. 5 lakh in a financial year with banks, post offices, Nidhis, or non-banking financial companies.
8. Life Insurance Premiums: Payments exceeding Rs. 50,000 in a financial year for life insurance premiums.
9. Securities Transactions: Contracts for sale or purchase of securities (excluding shares) exceeding Rs. 1 lakh per transaction.
10. Share Transactions: Sale or purchase of shares of unlisted companies exceeding Rs. 1 lakh per transaction.
11. Immovable Property Transactions: Sale or purchase of immovable property exceeding Rs. 10 lakh or valued by the stamp valuation authority at more than Rs. 10 lakh.

It is mandatory to quote PAN on the return of income. Apart from return of income, PAN is also to be quoted in all challans for making payment of tax, correspondence with the Income Tax Department, etc.

However, w.e.f., 01-09-2019, every person who has been allotted a PAN, and who has linked his Aadhaar number with PAN as per section 139AA, may furnish his Aadhaar number in lieu of a PAN for all the transactions where quoting of PAN is mandatory as per Income-tax Act. Thus, with effect from September 1, 2019, an assessee can file his return of income by
quoting his Aadhaar number instead of quoting PAN.

PAN Application Process

Application Forms

• Form 49A: For Indian Citizens
• Form 49AA: For Foreign Citizens

Application Methods

• Online:
• NSDL website: www.tin-nsdl.com
• UTIITSL website
• Offline: Through any NSDL TIN-Facilitation Centres/ PAN Centres

PAN Card Options

• Physical PAN Card: Printed and dispatched to communication address.
• E-PAN Card (PDF format): Sent to the applicant's email address if physical PAN Card is not required.

Aadhaar Requirement

**Note:** Effective from 01-07-2017, every person eligible for an Aadhaar number must quote either their Aadhaar number or the enrolment ID of the Aadhaar application form in the PAN application form.

Taxpayer is required to login on e-Filing portal using his registered username and password.

After login, he will get the “link Aadhaar” option under his ‘Profile Settings’.

Aadhaar number will be linked with PAN if name and date of birth of taxpayer is identical to
Aadhaar and PAN.

Taxpayer who wants to link their Aadhaar number with PAN is required to send SMS to 567678 or 56161 in following format: UIDPAN <12-digit Aadhaar><10 digit PAN>
Example of SMS to 567678 or 56161: UIDPAN 111122223333 AAAPA9999Q,

Aadhaar number will be linked with PAN if name and date of birth of taxpayer is identical to Aadhaar and PAN.

NO

Application for PAN cannot be made on plain paper. The application for PAN is to be made in the prescribed form i.e. Form No. 49A/Form No. 49AA as the case may be.

Form No. 49A is to be used by Indian Citizen/Indian Companies/Entities incorporated in India/Unincorporated entities formed in India

Form No. 49AA is to be used by individual not being a citizen
of India/Entities incorporated outside India/Unincorporated entities formed outside India)

IT PAN Service Centers or TIN Facilitation Centers shall not accept any incomplete and
deficient PAN application. However, these centers will assist applicants to correctly fill
up form 49A/49AA (as the case may be).

Yes, Form 49A/49AA (as the case may by) should be filled legibly in BLOCK LETTERS and preferably in black ink. It should also be noted that, each box, wherever provided, should
contain only one character (alphabet /number / punctuation sign) leaving a blank box after
each word.

The documents required to be submitted with the PAN application are specified in Rule 114 of the Income-tax Rules. The details of the documents required are also provided in the application form.

Individual Applicants

• Proof of Identity
• Proof of Address
• Proof of Date of Birth

The name of the applicant as mentioned in the application form and the name appearing in the documents submitted should match exactly.

Photographs

• Affix two recent color photographs with a white background (size 3.5 cm x 2.5 cm) in the space provided on the form.
• Do not staple or clip the photographs to the form.
• The clarity of the image on the PAN card will depend on the quality and clarity of the photographs affixed on the form.

Any of the following document will serve as proof of identity in case of individual applicants being Indian citizens (including those located outside India) :

Copy of following :

1. Aadhaar Card issued by the Unique Identification Authority of India
2. Elector's photo identity card
3. Driving License
4. Passport
5. Photo identity card issued by the Central Government or State Government or Public Sector
   Undertaking
6. Pensioner card having photograph of the applicant
7. Central Government Health Service Scheme Card or
8. Ex-Servicemen Contributory Health Scheme photo card

Copy of any of the following document will serve as proof of address in case of individual applicants being Indian citizens (including those located outside India):

• Aadhaar Card issued by the Unique Identification Authority of India
• Elector's photo identity card
• Driving License
• Passport
• Passport of the spouse
• Post office passbook having address of the applicant
• Latest property tax assessment order
• Domicile certificate issued by the Government
• Allotment letter of accommodation issued by Central or State Government of not more than three years old
• Property Registration Document
• Electricity Bill (not more than three months old)
• Landline Telephone or Broadband connection bill (not more than three months old)
• Water Bill (not more than three months old)
• Consumer gas connection card or book or piped gas bill (not more than three months old)
• Bank account statement or as per Note given below
• Depository account statement (not more than three months old)
• Credit card statement (not more than three months old)

Note: In case of an Indian citizen residing outside India, copy of Bank Account Statement in country of residence or copy of Non-resident External (NRE) bank account statements (not more than three months old) shall be the proof of address.

Alternatively, you can provide a certificate of identity in original signed by a Member of Parliament or Member of Legislative Assembly or Municipal Councillor or a Gazetted officer, or an employer certificate in original.

Copy of any of the following document will serve as proof of date of birth in case of individual applicants being Indian citizens (including those located outside India):

• Birth Certificate issued by the Municipal Authority or any office authorized to issue Birth and Death Certificate by the Registrar of Birth and Death or the Indian Consulate as defined in clause (d) of sub-section (1) of section 2 of the Citizenship Act, 1955 (57 of 1955)
• Pension payment order
• Marriage certificate issued by Registrar of Marriages
• Matriculation Certificate
• Passport
• Driving License
• Domicile Certificate issued by the Government
• Affidavit sworn before a magistrate stating the date of birth

While providing the full name, applicant should provide father's name and hence, married female should provide father's name and not husband's name.

Section 160 of Income-tax Act, 1961 provides that a non-resident, minor, lunatic, idiot, mentally retarded, deceased, wards of court and such other persons may be represented through a Representative Assessee.

In such cases:

• In the application for PAN, details of the non-resident, minor, lunatic, idiot, mentally retarded, deceased, wards of court, etc. should be provided.
• Details of the representative assessee have to be provided in item 14 of the application for PAN.
• Proof of Identity and Proof of address is also required for the representative assessee.

Obtaining a PAN (Permanent Account Number) does not automatically require you to file an income tax return. You are only obligated to file a return of income under section 139 of the Income-tax Act, 1961.

Yes, you should intimate your PAN to the deductor i.e. person deducting tax. From 1st April, 2010, non-furnishing of PAN to deductors results in TDS at much higher rate of 20% or even more.

If you've lost your PAN card or want a new one with the same details, you can apply for a duplicate PAN card.

How to Apply

1. Download and submit the form titled "Request for New PAN Card or/and Changes or Correction in PAN Data".
2. (Optional) If you have an FIR (First Information Report) for the lost PAN card, submit a copy along with the form.
3. Forgot your PAN number?
• Use the "Know Your PAN" facility provided by the Income Tax Department.
• Visit the Income Tax Department website: www.incometaxindiaefiling.gov.in
• Enter your core details like name, father's name, and date of birth to retrieve your PAN online.
4. Once you know your PAN:
• Submit the "Request for New PAN Card Or/And Changes Or Correction in PAN Data" form.
• Important: Fill out all form fields but leave the boxes on the left margin unticked.

PAN obtained once is valid for life-time of the PAN-holder. It is not affected by change of
address or change of Assessing Officer etc. However, any change in the PAN database (i.e.
details provided at the time of obtaining PAN) should be intimated to the Income Tax
Department by furnishing the details in the form for “Request For New PAN Card Or/ And
Changes or Correction in PAN Data”.

Section 272B provides for penalty in case of default by the taxpayer in complying with the
provisions relating to PAN, i.e., not obtaining PAN, even though he is liable to obtain PAN
or knowingly quoting incorrect PAN in any prescribed document in which PAN is to be quoted
or intimating incorrect PAN to the person deducing tax or person collecting tax. Penalty of
Rs. 10,000 undersection 272B can be levied for failure to comply with the provisions of
section 139A and penalty of Rs. 10000 per default shall be levied for failure to Quote or to
Quote invalid PAN

: A person cannot hold more than one PAN. If a PAN is allotted to a person, then he cannot
apply for obtaining another PAN. A penalty of Rs. 10,000/- is liable to be imposed under
Section 272B of the Income-tax Act, 1961 for having more than one PAN.
If a person has been allotted more than one PAN then he should immediately surrender
the additional PAN card(s).

It is advisable to retain only one PAN, preferably the one used for Income-tax purpose and
surrender the other number immediately. The institutions where the latter number has been
quoted should be informed of the correct PAN.

In case of PAN card is not received , contact NSDL.
The Income Tax Department or NSDL can be contacted in any of the following means.
MODE
Income TaxDepartment
NSDL
Website www.incometaxindia.gov.in
www.tin-nsdl.com


CallCenter
1800-180-1961
020-27218080


Email ID
efilingwebmanager@incometax.gov.in
tininfo@nsdl.co.in


SMS

SMS NSDLPAN
Acknowledgement No. & send to 57575 to obtain application status.





Address


Tin Call Center 4th Floor, Mantri Sterling, Plot No. 341, Survey No. 997/8, Model
Colony, Near Deep Bunglow Chowk, Pune - 411 016.

Any profit or gain arising from transfer of a capital asset during the year is charged to tax
under the head “Capital Gains”.

A capital asset may be defined to include property of any kind held by an assessee, whether
or not connected with their business or profession

No. If they are held as stock in trade for the purpose of business, it is not considered as a
Capital Asset.

Any capital asset held by a person for a period of more than 24 months immediately preceding
the date of its transfer will be treated as long-term capital asset subject to few
exceptions like in the case of shares.

Any capital asset other than long term capital asset is treated as short term capital
asset

Gain arising on transfer of long-term capital asset is termed as long-term capital gain and
gain arising on transfer of short-term capital asset is termed as short-term capital
gain.(The same is subject to certain exceptions)

Capital gains are classified into short-term capital gain and long-term capital gain to
determine the tax liability. In other words, the tax rates and computation provisions are
different for long-term capital gain and short-term capital gain

It is the process by which the cost of acquisition or improvement of a capital asset is
adjusted against inflationary rise in the value of asset

It is the cost incurred in acquiring the capital asset. It includes the purchase
consideration plus any expenditure incurred exclusively for acquiring the asset

Cost of acquisition × Cost inflation index of the year of transfer of capital asset

______________________________________________________________________________________

Cost inflation index of the year of acquisition

Indexed cost of improvement is computed with the help of following formula:
Cost of improvement × Cost inflation index of the year of transfer of capital asset

_________________________________________________________________________________________________________________________
Cost inflation index of the year of improvement

No, it is only available in case of long-term capital assets

In respect of capital asset acquired before 1st April 2001, the cost of acquisition will be
higher of the actual cost of acquisition of the asset or fair market value of the asset as
on 1st April 2001. This option is not available in the case of a depreciable
asset.

Any income which has not been into consideration for the purpose of calculation of tax is
known as undisclosed income.

The fair market value of the asset as on 1st June 2016 [which has been taken into account for
the purpose of said declaration Scheme, 2016] shall be deemed as cost of acquisition of the
asset. [This provision is applicable w.e.f. 1-4-2017]

If a person gifts his capital asset to any other person, then no capital gain will arise in
the hands of the person making the gift. If the person receiving the capital asset by way of
gift, will, etc. subsequently transfers such asset, capital gain will arise in his hands.
Special provisions are designed to compute capital gains in the hands of the person
receiving the asset by way of gift, will, etc. In such a case, the cost of acquisition of
the capital asset will be the cost of acquisition to the previous owner and the period of
holding of the capital asset will be computed from the date of acquisition of the capital
asset by the previous owner. Also, note that in case gift received from a non-relative,
there would be tax impact in the hands of the person who received the gift.

Any gain arising on transfer of capital asset is charged to tax under the head “Capital
Gains”. Income-tax Law has prescribed the method of computing capital gain arising on
account of sale of capital assets. Thus, to check the taxability in this case, compute
capital gain by following the rules laid down in this regard, and if the result is gain,
then the same will be liable to tax.

Stamp duty value means the value adopted or assessed or assessable by any authority of a
State Government for the purpose of payment of stamp duty.

While computing capital gain arising on transfer of capital asset, if the stamp value does
not exceed 105% of actual sales consideration then the actual sale value is taken as full
value of consideration.

Profits and gains earned from sale of land or building, or both are chargeable to tax under
the head Capital Gain.

Yes, only if certain conditions are satisfied such as the asset transferred is land or
building or both, sale consideration is less than the value as determined by the stamp duty
authority for the payment of stamp duty and stamp duty value exceeds 105% of the
consideration received or receivable on account of transfer.

: Normally, a person is taxed in respect of income earned by him only. However, in certain
special cases income of other person is included (i.e., clubbed) in the taxable income of
the taxpayer and in such a case he will be liable to pay tax in respect of his income (if
any) as well as income of other person too. The situation in which income of other person is
included in the income of the taxpayer is called as clubbing of income.

If a person transfers only the income from an asset owned by him without transferring the
asset from which the income is generated, then the income from such an asset is taxed in the
hands of the transferor (i.e., person transferring the income).

Revocable transfer is generally a transfer in which the transferor directly or indirectly
exercises control/right over the asset transferred or over the income from the asset.
If a transfer is held to be a revocable, then income from the asset covered under revocable
transfer is taxed in the hands of the transferor

Under certain circumstances, remuneration (i.e., salary) received by the spouse of an
individual from a concern in which the individual is having substantial interest is clubbed
with the income of the individual.

An individual shall be deemed to have substantial interest in any concern, if such individual
alone or along with his relatives* beneficially holds at any time during the previous year
20% or more of the equity shares (in case of a company) or is entitled to 20% of profit (in
case of a concern other than a company).
*Relative for this purpose includes husband, wife, brother or sister or lineal ascendant or
descendent of that individual [Section 2(41)]

Remuneration is clubbed under the following circumstances:
• The individual is having substantial interest in a concern.
• Spouse of the individual is employed in the concern in which the individual is having
substantial interest.
• The spouse of the individual is employed without any technical or professional knowledge
or experience (i.e., remuneration is not justifiable).

If an individual transfers (directly or indirectly) his/her asset (other than house property)
to his or her spouse otherwise than for adequate consideration, then income from such asset
will be clubbed with the income of the individual (i.e., transferor). The clubbing
provisionswill apply even if the form of asset is changed by the transferee-spouse.

Clubbing provision will apply even in case of transfer of house property for inadequate
consideration. The difference being that it is dealt with another section of Income tax Act.

The clubbing provisions are not applicable in the following situations
• If the transfer of asset is for adequate consideration;
•
•If the transfer of asset is in connection with an agreement to live apart;
• If asset is transferred before marriage, no income will be clubbed even after marriage,
since the relation of husband and wife should exist both at the time of transfer of asset
and at the time of accrual of income;
• If on the date of accrual of income, transferee is not spouse of the transferor
(i.e., the relation of husband and wife does not exist).

If an individual transfer (directly or indirectly) his/her asset to his/ her son's wife
otherwise than for adequate consideration, then income from such asset will be clubbed with
the income of the individual (i.e., transferor being father-in-law/mother-in-law). The
provisions of clubbing will apply even if the form of asset is changed by the
transferee-daughter-in-law.
If the asset is transferred before marriage of son, no income will be clubbed even after
marriage, since the relation of father-in-law/mother-in-law and daughter-in-law should exist
both at the time of transfer of asset and at the time of accrual of income.
If on the date of accrual of income, the relation of father-in-law/mother-in-law and
daughter-in-law does not exist, then the provisions of clubbing will not apply.

If an individual transfers (directly or indirectly) his/her asset otherwise than for adequate
consideration to a person or an association of persons for the immediate or deferred benefit
of his/her spouse, then income arising from the asset so transferred will be clubbed with
the income of transferor.

: Income of minor child is clubbed with the income of his/her parent (*). Income of minor
child earned on account of manual work or any activity involving application of his/her
skill, knowledge, talent, experience, etc. will not be clubbed with the income of his/her
parent. However, accretion from such income will be clubbed with the income of parent of
such minor.
Income of minor will be clubbed with the income of that parent whose income (excluding
minor's income) is higher.
If the marriage of parents does not sustain, then minor's income will be clubbed with the
income of parent who maintains the minor.
In case the income of individual includes income of his/her minor child, such individual can
claim an exemption under Section 10(32) of Rs. 1,500 or income of minor so clubbed,
whichever is less.
(*) Income of a minor suffering from disability specified under Section 80U will not be
clubbed with the income of his/her parent.

When an individual, being a member of HUF, transfers his property to the HUF otherwise than
for adequate consideration or converts his property into the property belonging to the HUF
(it is done by impressing such property with the character of joint family property or
throwing such property into the common stock of the family), then clubbing provisions will
apply as follows:
• Before partition of the HUF, entire income from such property will be clubbed with the
income of transferor.
• After partition of the HUF, such property is distributed amongst the members of the
family. In such a case income derived from such property by the spouse of the transferor
will be clubbed with the income of the individual and will be charged to tax in his
hands.

An Indian residing abroad is generally known as Non-Resident Indian (NRI). Non-Resident
Indian (NRI) means a person resident outside India who is a citizen of India or is a person
of Indian origin.

Yes, like a resident Indian, the NRI, PIO are eligible to avail Life Insurance policies in
India, whether they are currently residing in India or not.

No, Policies are issued only in Indian Rupees, however the payment for the policy premium can
be made from outside India in foreign currency

NRI can buy the insurance policy on their visit to India where all formalities are completed
during his stay in India. He would be treated at par with Indian Lives for the purpose of
availing the insurance policy.NRI may also obtain insurance cover from their present country
of residence where all formalities are completed in there.

In case the NRI is present in India at the time of buying the insurance policy, the medical
examination can be done here in India at the cost of the Insurance Company. However, the
facility of the medical examination can also be availed by him in the country of his
residence, in that case, he needs to go through the prescribed medical examination, and send
the report to the Insurer

Payment of premium can be done from his NRO/NRE bank account in India. Payment can also be
made from remittances from overseas account

There is no restrictions on buying the insurance policy by NRI.

The claim amount can be received only in India in Indian currency. The NRI can take out the
amount outside India from the Indian account subject to the guidelines in this regard.

the KYC documents needed include Copy of Passport, OCI/PIO Card, Address proof document,
Passport size pics, Proof of income in the form of Income Tax Returns, copy of employment
contract where emoluments are mentioned, Certificate from Chartered Accountant, PFQ and any
other documents as may be prescribed.

The existing policies taken while in India will continue in Indian Currency even after the
life assured moves to foreign countries as NRI.Similarly, in case of NRI returning to India,
the policy will continue in his name.

NRI generally can have tenure till 25 years. The minimum age for getting NRI insurance is 18
years and the maximum age varies from 55 to 60 years depending on the terms and conditions
stated in the policy.

NRIsare eligible to purchase Unit Linked Insurance Plan (ULIP).

The main benefits include one of the cheapest premiums in the world, helps in parking the
surplus funds, providing comfort of buying through a known brand back in homeland and
inheritance planning

: Aviva Life Insurance, ICICI Prudential Life Insurance, PNB MetLife Life Insurance, TATA AIG
Life Insurance, Max Life Insurance, Kotak Life Insurance, HDFC Life Insurance, SBI Life
Insurance and Life Insurance Corporation of India (LIC).

No.Rental income received by a tenant from sub-letting is taxable under the head “Income from
other sources” or profits and gains from business or profession.

The rental income from a shop will be charged to tax under the head “Income from house
property”.

Composite rent means the rent of building and rent towards other assets or facilities. It is
the rent charged in cases where the person does not merely let out a property, but also
provides other facilities.

Municipal Value is the value determined by the municipal authorities by making a periodical
survey of all buildings in their jurisdiction

It is the reasonable expected rent which the property can fetch

It is the maximum rent which a person can legally recover from his tenant.

Municipal value or Fair rental value whichever is higher is taken as the expected rent, but
it should not be more than the standard rent.

Actual rent means the rent for which the property is let out during the year.

While computing actual rent, rent pertaining to vacancy period is not to be deducted.
However, unrealised rent is to be deducted from actual rent.

Unrealised rent is the rent of the property which the owner of the property could not recover
from the tenant, i.e., rent not paid by the tenant.

Where the property or any part of the property is let and was vacant during the whole or any
part of the previous year and owing to such vacancy the actual rent received or receivable
by the owner in respect thereof is less than the reasonable expected rent than the actual
rent so received or receivable (as reduced by the vacant allowance) shall be considered to
be the Gross Annual Value of the property.

The expenses to be deducted includes Municipal tax paid, Standard deduction @ 30% of Net
Annual Value and Interest on capital borrowed for the purpose of purchase, construction,
repair, renewal or reconstruction of the property.

There is no limit on the quantum of interest which can be claimed as deduction under the head
Income from house property.

Pre-construction period is the period commencing from the date of borrowing of loan until the
completion of the construction or acquisition of the property.

It is the interest pertaining to the relevant year, i.e., the year for which the income is
being computed

Yes, interest pertaining to pre-construction period is allowed as deduction in five equal
instalments commencing from the year in which the house property is acquired or constructed.

Can the rental income received be split and taxed in the individual hands?

A self-occupied property means a property which is occupied throughout the year by the owner
for his residence

No. However, there is one exception to this rule.

Rental income from a property being building or land appurtenant thereto of which the
taxpayer is owner is charged to tax under the head “Income from house property”.

If a person occupies more than one property for his residence, then the self-occupied benefit
will be granted only in respect of any one property as selected by him and other
property/properties will be treated as “Deemed to be let-out”. However, w.e.f. A.Y 2020-21 a
person can claim two properties as self-occupied house property.

A person can claim two house properties as self-occupied w.e.f. A.Y 2020-21. Any two of them
shall be treated as self-occupied and the remaining as deemed let-out and will be taxed
accordingly.