Permanent account number (PAN) is a 10 digit alphanumeric number that is issued by the Income tax department to every person who filed an application in this regard.� Through PAN card number the taxpayer is connected with the tax department. It is a mandatory requirement for the incorporation of various forms of the company like the private limited company, public limited company and one person company etc.�
Why is it important to have a PAN card number?
As per the Income Tax Act, 1961 it is mandatory for individuals and any form of entity to generate a PAN number while the payment of counterpart in India. Any person that fail to do so will be charged with the concealing tax which can be at the rate of more than 30% of the total invoiced payment i.e. the government will deduct tax at the highest rate possible.
Also, having a valid PAN number will grant benefits while paying the invoices, income tax returns and remittances to the holders.
Following documents are required for obtaining a PAN card number-
- Any one of the following documents shall be submitted as the Proof of identity
- A valid copy of the certificate of incorporation
- A valid copy of the business registration certificate
- An authentic copy of articles of association
- For the proof of address a valid copy of the company's bank statement bearing the company's name and full current address for any kind communication. The PAN card will be delivered to this address.
How to apply for PAN card?
Following steps shall be undertaken to acquire a PAN card-
- To begin the process of acquiring PAN number an application form 49A shall be downloaded.
- In the form, downloaded the applicant is required to fill all the necessary details.
- The applicant is required to acquire a bank draft for the payment of the pan card fees.
- The Column of name and the details of accessing officer can be left blank
- As soon as the form has been filled by the applicant he can download it and take a printout of it.
- The downloaded form shall be signed by the authorized director on behalf of the company and should be sent to any PAN agent or broker
- The applicant can send the form directly to any NSDL processing centers in India in case he does not prefer online services.
- The applicant is required to note down the PAN card number in order to track down the status of his application.
- A PAN number will be provided in around 15 days to 5 weeks to the applicant.