Income tax return alert: The Permanent Account Number (PAN) is one of the most essential tools in your purse, wherever you go. This ten-digit unique alphanumeric number encrypted in laminated plastic card, ensures you do not face any difficulty while doing major transactions. Hence, PAN cards are very important to carry everywhere you go. Interestingly, if you do not have a PAN card, even though you are liable to hold one, then the I-T department has the liberty to levy penalties upon you. Not only this, if you have tampered with your details knowingly, you will also be held liable and hence a fine you will have to pay.
According to Income Tax Department website, penalty of Rs 10,000 under section 272B can be levied. The section 272B of IT Act, provides for penalty in case of default by the taxpayer in complying with the provisions relating to PAN, i.e., not obtaining PAN even when s/he is liable to obtain PAN or knowingly quoting incorrect PAN in any prescribed document or intimating incorrect PAN to the person deducing tax or person collecting tax.
Know who has to obtain a PAN card, as per the Income-Tax department
1. Every person needs it if his total income or the total income of any other person in respect of which he is assessable during the year exceeds the maximum amount which is not chargeable to tax.
2. A charitable trust is required to furnish returns under Section 139(4A).
3. Every person who is carrying on any business or profession whose total sale, turnover, or gross receipts are or is likely to exceed five lakh rupees in any year.
4. Every importer/exporter who is required to obtain Import Export code.
5. Every person who is entitled to receive any sum/income after deduction of tax at source.
6. Any person who is liable to pay excise duty or a producer or manufacturer of excisable goods or a registered person of a private warehouse in which excisable goods are stored and an authorized agent of such person.
7. Persons who issue invoices under Rule 57AE requiring registration under Central Excise Rules, 1944.
8. A person who is liable to pay the service tax and his agent.
9. Persons registered under the Central Sales Tax Act or the general sales tax law of the relevant state or union territory.
10. Every person who intends to enter into specified financial transactions in which quoting of PAN is mandatory.
You must note that, generally a citizen who passes the age of 18, is advised to obtain a PAN card. Why? Because PAN card comes into picture for services like bank deposits, bank account opening, application for passport, payment in stocks, savings account, investment in mutual funds, application for higher studies and much more.