Section I: Income Tax and You

• Ques: Permanent Account Number (PAN)
• Ans: Permanent Account Number (PAN) is a ten- digit alphanumeric number, issued in the form of a laminated card, by the Income Tax department. Key points to remember about PAN are:
  • It is mandatory to have PAN number in order to file your income tax return.
  • Having PAN number does not necessarily require you to file return. You are required to file return only if your gross total income is above the exemption limit.
  • PAN number is required to be quoted if you make transactions like:
    • sale/purchase of immovable property valued at Rs. 5 lakh or above
    • sale/purchase of car for any amount
    • time deposit exceeding Rs. 50,000
    • sale/purchase of security (such as shares, mutual funds) exceeding Rs. 1 lakh
    • application for phone connection
    • payment in cash for bank draft or pay order exceeding Rs. 50,000 in a day
  • Incorrectly quoting a PAN will make you liable for penalty of Rs. 10,000.
  • PAN is your personal identity, don't disclose it unless required. Keep a laminated photocopy of PAN card for use & keep the original PAN card at a secure place.