Pan Card-A tracking tool in hands of Income Tax Department
Pan Number a ten digit number issued by income tax department is tracking tool in hands of department.
Income Tax Department can track the financial transactions of every PAN holder.
PAN card is mendatory in transaction involving large amount of money. PAN is compulsory for almost all big transaction, some of these are:
- Opening Demat Account to buy shares
- Transfering cash through bank
- Buying Properties
- Buying vehicles of high value
- Buying jewellory of high value and many more
PAN is compulsory to file the income tax returns. Without Income tax returns getting loan is not possible.
As per Section 139A (1) and 1(A), All existing assesses or taxpayers or persons who are required to furnish a return of income, even on behalf of others, must obtain PAN.
Section 139A (5) (c) read with Rule 114B requires that Any person, who intends to enter into financial transaction where quoting PAN is mandatory, must also obtain PAN.
Also Section 139A (2) and (3) need that The Assessing Officer may allot PAN to any person either on his own or on a specific request from such person.
Can a Person have more than one PAN?
As per section 139A (7), Obtaining or possessing more than one PAN is against the law.
One can apply for PAN using the form 49A. You can Download the form from Income Tax site.