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Saturday, June 29, 2024

What is the eligibility for holding PAN?


Requirements for Obtaining a PAN

Requirements for Obtaining a PAN

As per Section 139A (1) of the Income Tax Act, the following individuals and entities are required to have a Permanent Account Number (PAN):

Mandatory PAN Requirements

  • All individuals whose total income exceeds the starting point of the Income Tax slabs. This includes income chargeable to tax on behalf of others, such as earnings of a minor’s child.
  • Charitable trusts required to file returns under Section 139(4A).
  • Individuals running a business or profession where the total sales or income exceeds Rs. 5 Lakhs.
  • Importers/exporters needing an Import-Export Code.
  • Individuals receiving payments post-TDS collection.
  • Persons required to pay excise duties.
  • Individuals issuing invoices under Rule 57AE.
  • Persons responsible for paying service tax and their agents.
  • Persons registered under the Central Sales Tax Act or general sales tax law of the relevant state or union territory.
  • Individuals wishing to participate in financial transactions that require PAN details.

Voluntary PAN Application

Individuals not covered under the above categories can also apply for a PAN card voluntarily.

Special Cases - Section 160

According to Section 160 of the Income Tax Act, the following individuals can also apply for a PAN through a Representative Assessee:

  • Minors
  • Non-residents
  • Court of Wards
  • Persons legally defined as “an idiot or a lunatic”

For more information or assistance, visit the official Income Tax Department's website or contact their customer service.

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