Permanent Account Number

Permanent Account Number

(1) Who has to apply for PAN? Every person who has not been allotted a permanent account number shall, within such time, as may be prescribed, apply to the assessing officer for the allotment of a permanent account number in the following cases if:

(I) his total income or the total income of any other person in respect of which he is assessable under this act during any previous year exceeded the maximum amount which is not chargeable to income-tax; or

II) he is carrying on any business or profession whose total sales, turnover or gross receipts are or is likely to exceed 5000 in any previous year; or

III) he is required to furnish a return of income under section 139(4a).i.e., return of trust and charitable institutions; or

IV) Not relevant now.

V) the person being a resident other than an individual, which enters into a financial transaction of an amount aggregating to 250000 or more in a financial year; or

VI) the person is the management director director, partener trustee, author, founder, karta, chief executive officer, principal officer or office bearer of the person referred to in clause (v) or any person competent to act on behalf  of the person to in clause (v) or

VII) the person intends to enter into such transaction as may be prescribed by the board in the interest of revenue.

2) power delegated to the central government to notify class or classes of persons for whom it will be obligatory to apply for permanent account number (PAN)

3) Prescribing new class of person for allotment of pan and suo-moto allotment of pan the central government may for the purpose of collecting any information which may be useful for or relevant to the purpose of this Act, by way of notification specify any class or classes of persons, and such persons shall within the prescribed time apply to the assessing officer for allotment of a permanent account number.

4) PAN may be allotted by the AO : the Assessing officer having regard to the nature of transactions as may be prescribed may also allot a permanent account number to any other person (whether any tax is payable by him or not ) in the manner and in accordance with the procedure as may be prescribed.

5) Person other than falling under section 139A(1) or (2) may apply for PAN (Section 139A(3) Any person, not falling under section 139A(1) or section 139(2) above, may apply to the Assessing officer for the allotment of a permanent account number and thereupon, the assessing officer shall allot a permanent account number to such person forthwith.

What is Business or profession