- TG Team
- | Income Tax - Articles |
- 06 Apr 2018
- 18,054 Views
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PAN is not restricted to people who are above the age of 18 or citizens of India. Every individual who has a source of income and files income-tax returns or intends to enter financial transactions in India requires PAN. So a foreign national living and working in India and earning a taxable income needs to acquire PAN. Similarly, a child artist whose annual income is taxable also needs a PAN. Consequences of not having/quoting PAN are mentioned below:
1. If you do not furnish PAN, then tax is deducted at a much higher rate. For instance, if the annual interest you earn on your bank fixed deposits is at least Rs. 10,000, then banks deduct tax at source before crediting the interest to your account. Tax will be deducted at 10% if you produce PAN but flat 20% or higher if you do not provide PAN.
2. One cannot make an application under section 197 or file declaration under section 197A without PAN as under both the sections quoting of PAN is mandatory.
3. There is penalty U/s 272B for non quoting of PAN of an amount Rs 10,000
4. One cannot sale & purchase of motor vehicle other than two wheeler without quoting PAN
5. Application to bank or other company/institution for issue of credit/debit card cannot be made without mentioning PAN
6. One cannot make payment of bill to hotel and restaurants in cash of an amount exceeding fifty thousand rupees without PAN
7. One cannot make payment payment of amount exceeding Rs 50,000 to a mutual fund for purchase of units without having PAN
8.Payment in connection with travel to any foreign country or payment for purchase of any foreign currency at any one time in cash of an amount exceeding fifty thousand rupees cannot be made without quotting PAN.
9.Payment as life insurance premium to an insurer as defined in clause (9) of section 2 of the Insurance Act, 1938 (4 of 1938) of an amount aggregating to more than fifty thousand rupees in a financial year cannot be made without quoting PAN
10. Sale or purchase of any immovable property of anAmount exceeding ten lakh rupees or valued by stamp valuation authority referred to in section 50C of the Act at an amount exceeding ten lakh rupees can be undertaken without quoting PAN
11.Sale or purchase, by any person, of goods or services other than those specified in rule 114b from Serial No. 1 to 17 , of an amount exceeding two lakh rupees per transaction cannot be undertaken without quoting PAN.
You can acquire PAN only once and PAN will remain the same throughout your life, irrespective of whether you change jobs or cities. If, however, you lose the card, you will be issued a new card but the number will remain the same.
Document on which PAN required to be quoted
(Republished With Amendments)
Tags: Permanent Account Number, TDS
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