PAN Number Provision Compulsory Transactions
PAN Number as most of us know is Permanent Account Number, which is assigned to every person by Income Tax Department of India.This is done to keep a record of all the financial transactions that we do, wherever we conduct the transaction in India.
Income Tax Department of India, as part of regularization and streamlining of all the monetary activities conducted by Indian Citizens has come up with this method, to ensure better control and to monitor financial activities across the country. This has become necessary as there is a considerable amount of unaccounted financial transactions happening in India.
Now that India is far more integrated with the global economic system, it is incumbent upon the Finance Ministry & Income Tax Department of India to weed out unhealthy financial practices, and make it more transparent so that our economy is seamlessly integrated with the emerging world economic order. There are various steps taken in this direction, and one of the foremost among them is making Provision of PAN Number Compulsory for a range of transactions.
Here are the lists of such transactions that need PAN Number to be compulsorily provided. It may please be kept in mind that the Income Tax Department continues to add newer services throughout the year. Hence many more services will come under the net, on a continual basis. Hence it is advised to check up with whosoever you are conducting the transactions, whether Submission of PAN Number is compulsory for the same, apart from off-course the ones already listed underneath.
- Opening Bank Account
- For obtaining any kind of Loan from Banks & Financial Institutions
- To make TDS eligible payments ( It means Any person / organization entitled to receive any sum or income or amount towards supply of goods or services, on which tax is deductible under Chapter XVIIB shall furnish his Permanent Account Number to the person / organization responsible for deducting such tax.)
- To purchase of high-end consumer items
- To undertake foreign travel
- To sponsor foreign travel either to dependents, relatives, friends or company employees (In case of an organization)
- Opening and operating PayPal Account from India
- Any Transaction of immovable properties
- For dealing in Shares, securities etc. for Values above Rs 50000/-
- For registration with sales Tax Authorities
- For obtaining Value Added Tax (VAT) Number
- To obtain excise registration
- To Obtain Import Export License (Also called as IEC)
- To obtain Octroi Registration Number
- To seek Octroi Exemption for certain specified goods
- Purchase and sale of motor vehicles
- To Open and Operate Fixed deposits of value above Rs 50000/-
- Application for allotment of telephone connections
- Hotel expenditures incurred above 25000/-
- To avoid deduction of TDS on interest earnings from Banks (This is with effect from 01st April 2010, as per circular from Income Tax Department of India to all banks. Earlier to that Form 15G & Form 15H were acceptable, which now stands withdrawn)
For some of the services / transactions listed above, if you have not been allocated PAN Number then till such time PAN is allotted to a person, she / he may quote her / his General Index register Number or GIR No. This Number is allocated once you have applied for PAN Number.
As you can see from this article, there is very less scope to conduct a whole variety of transactions that are necessary for our day-to-day living, which now can be undertaken only if you have PAN Number & PAN Card. Hence in case you have not applied for it as yet, do it immediately. For your convenience we have tried to help you out in application for PAN Number, as you can download the relevant forms as well as detailed instructions on how to apply. CLICK HERE, and go ahead with the application. You do not have to personally visit any office of Income Tax Department of India. You can complete the form and send it at the designated address, and the Income Tax Department of India will send you the acknowledgement and subsequently your PAN Card at the address you have provided while filling the form.