2. Discussion Points
Permanent Account Number
What is PAN Card?
Why it is required?
How to get it?
Income Tax Return
What is ITR?
Types of ITR’s? Which one I need to fill?
Benefits of ITR’s?
3. What is Permanent Account
Number?
Permanent Account Number (PAN)
refers to a ten-digit alphanumeric
number, issued in the form of a
laminated card, by the Income Tax
Department in India.
It is a must to have a PAN number for
those who intend to do investments &
file their income tax returns in India.
4. Who Issues it?
PAN CARD is issued by the
Indian Income Tax Department under
the auspices of the
Central Board for Direct Taxes
(CBDT) and is almost equivalent to a
national identification number.
5. What are its uses?
For Filling Income Tax Returns
Operating demat accounts
Deposit of Rs 50,000 and above in the banks
Investments in shares, mutual funds and post office savings
in excess of Rs 50,000 each
Sale or purchase of motor vehicles, excluding two wheelers
Sale or purchase of immovable properties valued at Rs 5
lakhs and above
Applying for a new telephone connection (landline or
mobile)
Payment of Rs 25,000 or more against hotel bills
If you have a PAN card, it can be used as a proof of your
identity
Person can check whether the taxes paid by you are
updated in the database of the Income Tax Department.
6. Is Income Tax Return must be
filed once you get PAN?
Just because you have PAN, it is not
necessary to file Income Tax Return.
Income Tax Return needs to be filed only
when you have taxable income or you need
to claim refund of tax deducted by your
employer or the institution making
payments to you towards interest or
professional services or commission or rent
or winnings from lottery / game shows or
horse races or contracts etc.
However, the converse is true: you need
PAN to file an Income Tax Return.
7. How to get PAN?
Person need to submit his/her details in Form No. 49A
to any of the PAN Facilitation centers, located in all
cities and major towns, wherever Income Tax offices
are located.
It will normally take about 2 to 3 weeks to get your
PAN card delivered at your doorstep.
If a person need a PAN card urgently, he/she may
also get Tatkal PAN by applying online using your
credit card. Person will get your PAN on priority basis
and the same will be communicated to applicant
through email.
8. What are the details to be
submitted for applying PAN?
Only very few details like the following need to be given in
the case of individuals:
Name including your other names, if any
Father's name to be given even in the case of married
women
Date of birth
Address – both official and residential
Main source of your income – salary or
professional/business or any other income
Designation and code of your assessing officer.
Person need to submit the following documents along with
your application:
Proof of identity
Proof of address
Two recent colour photograph (3.5 cm X 2.5 cm), one duly
signed
9. List of Documents For ID Proof
Copy of any one of the following will serve as a proof of identity:
School leaving certificate
Matriculation certificate
Degree of recognized educational institution
Depository account statement
Valid Credit card
Bank account statement
Water bill
Ration card
Property tax assessment order
Passport
Voter's identity card
Driving license
Certificate of identity signed by a Member of Parliament or
Member of Legislative Assembly or Municipal Councilor or a
Gazetted Officer.
10. List of Documents for Address Proof
Individual Applicants who are citizens of India and located within India at
the time of application for PAN:
Copy of any one of the following will serve as a proof of address:
Electricity bill*
Telephone bill*
Depository account statement*
Credit card statement*
Bank account statement*
Rent receipt*
Employer certificate*
Ration card
Passport
Voter's identity card
Property tax assessment order
Driving license
Certificate of address signed by a Member of Parliament or Member of
Legislative Assembly or Municipal Councilor or a Gazetted Officer.
11. Can you have more than one
PAN?
Obtaining or possessing more than
one PAN is against the law.
12. Can minor apply for pan card?
Yes. One can apply PAN Card on behalf of a
minor. Minors may be represented through
a representative
13. Will it change if we get posting at
other location?
Permanent Account Number (PAN), as the name
suggests, is a permanent number and does not
change during lifetime of PAN holder.
Changing the address or city, though, may change
the Assessing Officer. Such changes must,
therefore, be intimated to nearest IT PAN Service
Center or TIN Facilitation Center for required
correction in PAN databases of the Income Tax
department.
14. What is the procedure for
applicants who cannot sign?
In such cases, Left Hand Thumb impression
of the applicant should be affixed on Form
49A or
'Request For New PAN Card Or/ And Changes In
at the place meant for signatures and got
attested by a Magistrate or a Notary Public
or a Gazetted Officer, under official seal
and stamp.
16. Income Tax Returns
Central Board of Direct Taxes (CBDT)
has notified the new income tax
return forms for the assessment year
2012-13.
Let us try to understand these new
returns in a question and answer
session.
17. Benefits of Income Tax Returns
Standard Income Proof
ITR is considered a customary income
proof not only in India but also globally.
Speeds up your loan Application
Process
Apart from a good credit history, the fact
that you are filing your ITR regularly
gives you speedier access to credit.
18. Benefits of Income Tax Returns
Claim your Tax Refund
Filing ITR is not aways about paying tax.
It can be used as a means to reduce
your tax liability! TDS can be claimed
back.
19. Q. How many types of new returns have
been notified by the CBDT?
A. In all, 7 types of income tax return
forms have been notified by the CBDT
viz;
ITR-1(SAHAJ), ITR-2, ITR-3,
ITR-4S(SUGAM), ITR-4,
ITR-5, ITR-6.
20. Q. Who can use ITR-1 (SAHAJ)?
A. ITR-1(SAHAJ) is meant only For Individuals having
Income from Salary / Pension / Income from One House
Property (excluding loss brought forward from previous
years) / Income from Other Sources (Excluding Winning
from Lottery and Income from Race Horses).
B. Further in a case where income of another person like
spouse, minor child, etc. is to be clubbed with the
assessee this return form can be used only if the income
being clubbed falls in to above income categories.
21. CBDT has issued a notification 9/2012 by which Income tax return
for salaried class persons has been exempted if total income is
less than 5,00,000 ,subject to following conditions:
1. This exemption is available to Individual assessee only (He may be resident or not)
2. Exemption is available for Assessment year 2012-13
3. Total Income(after deduction 80C to 80U) of Individual must be up to Five Lakh Rupees only.
4. Income must be earned from Salary and/or Saving Bank Interest up to Rs 10000/-. Pension is
also covered under salary head.
5. Individual must have reported his pan to his employer.
6. He has Earned salary only from one employer during the year.
7. He has reported his income from saving Bank Interest to his employer for TDS deduction
purposes.
8. Employer has deducted the tax on his Full income, salary plus interest {if any},and tds has
been deposited in Govt. account by the employer.
9. No refund is Due to assessee.
10. Individual has received Form 16 From the employer, which mention PAN, Income detail and
Tax deducted and deposit detail.
If all the above conditions are satisfied then you are exempted to file Income tax
Return for Financial year 2011-12
22. E filing of Income Tax return is Must for Individuals and
HUF, Where Income for the Financial Year 2011-12 is more
than 10 Lakh. The New rule has been added with effect from
01.04.2012 and this is applicable for assessment year
2012-13 (previous year 2011-12).
E filing can be done with Digital signature or without digital
signature (By sending ITR-V to CPC, Banglore)
Due Date to File Income Tax return for assessment year
2012-13 for non audit cases is 31.07.2012.
23. a. SAHAJ and SUGAM forms are colored forms with standard
features like registration marks, barcode etc. Taxpayers are
advised to collect the forms from Income Tax offices, Tax-
melas, TRP’s and submit the same to the income tax
department.
b. Taxpayers can also download the forms from the website
and print using a color printer on an A4 size white paper. It
is advisable for taxpayer to set the properties in printing
options to “fit to page” and print the forms on a good quality
white paper.
c. Taxpayers may also use the Fillable forms, being made
available by the department.
d. The Acknowledgement copy [ITR-V Acknowledgement] to
be retained by taxpayer may be printed in black & white.
24. Q. Can an individual having only interest
income and/or rental income use
ITR-1(SAHAJ)?
A. Yes. ITR-1 can be used if the
individual has only interest income or
rental income from one house
property and no salary income.
25. Q. Who can use ITR-2?
A. Individual who can not file
ITR-1(Sahaj) above and where the
total income does not include any
income chargeable to income-tax
under the head “Profits or gains of
business or profession”,.
26. Q. Can an individual having only salary
income use ITR-2?
A. No. An individual having only salary
income should use ITR-1(SAHAJ) and
he should not use ITR-2.
