PAN Registration

WHAT IS PAN?

Permanent Account Number or PAN is a unique 10-digit alphanumeric identity allotted by the Income Tax Department to every person and entity liable to pay taxes within the country. PAN is primarily used as unique identification of tax payees to keep track of taxable financial transactions so that tax evasion can be curtailed. It is mandatory for all persons and entities to register with the Income Tax department and get a Permanent Account Number if they earn taxable income i.e. above the non-taxable income slab. PAN enables one to engage in financial transactions such as sales, purchase, receive professional fee or salary etc. Once allotted, every Taxpayer’s PAN remains the same regardless of which part of country they are operating in, and so, it is not affected by change in address or anything of that sort. It requires no renewal and remains valid through the lifetime of a taxpayer.

ADVANTAGES OF PAN

• It is required for filing of Income Tax Return.
• You cannot open a bank account without it. 
• Useful for acquiring loans, credit cards etc.
• Serves as identity proof.
• It is mandatory for purchase of immovable property worth 5 lakhs or more.
• It is also required for purchase of cars and bigger vehicles.

DOCUMENTS REQUIRED FOR PAN REGISTRATION

Any person can apply for PAN as there is no minimum age limit for registering for PAN. Moreover, NRIs who wish to carry on financial activities within India, can do so only after getting a Permanent Account Number. The following documents are needed for registration of different entities:

• INDIVIDUAL: proof of address, id proof and proof of date of birth.
• HUF: Karta’s address proof, id proof, proof of date of birth along with father’s name and addresses of all coparceners and an affidavit containing details of all coparceners.
• PARTNERSHIP: Certificate of Registration or copy of Partnership deed is required.
• LLP: Certificate of LLP Registration.
• COMPANY: Incorporation Certificate.
• TRUST: Trust Deed & Registration Certificate. 
• NRI: Bank Account Statement held in present country of residence is required as proof of address.