Permanent account number (PAN) is a unique ten-digit number allotted by income tax department to assess for identification purpose. the application for pan card can be made at any NSDL office or online at their site.
PAN is an unique identifier for the assessee of income tax which helps in easy retrieval and matching of information relating to an assessee’ declaration of income in income tax return, declared investment, payment of taxes, raising of loans, assessment, tax demand, tax arrears etc.
The PAN card is a plastic card which contains details of assessee like photograph in case of individual and no photograph in case of other assessee, the ten-digit pan permanent account number allotted by income tax department and the date of incorporation or birth in case of individual assessee.
The PAN is unique, national, and permanent. It is unaffected by a change of address, even between states in India. from 1 January 2005 it has been made mandatory to quote Permanent Account Number (PAN) on challans for any payments due to Income Tax Department (ITD)
An assessee should always keep the database at income tax department updated, any change in particulars like that of name, address etc. should immediately be changed in the pan database. As assesse can approach NSDL office for changing the same.
Ans: Organizations and individuals running business with an Indian firm or making money out of India even with the invoices need to get a PAN number. This is applicable even in the case, the organizations and individuals don't have any registration, permanent establishment or office in India.
Ans: Yes, it is obligatory as it is an important legal document for a company to run the business. Thus, the companies running businesses in India, whether registered in India or in any foreign nation need a Company PAN Card as declared by the Income Tax department of India..
Ans: The code on the PAN card is used for the reference by the Income Tax department as it helps in tracking down all the financial transactions. As every registered company in India or abroad is required to pay tax, Company PAN Card Registration ensures that invoices and remittances are paid. It also verifies whether income tax returns are filed or not. Moreover, the Companies also need to provide their Tax Registration Number to their payers. A company can obtain its TRN only if it has its own PAN.
