Permanent Account Number(PAN) &

Income Tax Return (ITR)

Benefits:Usage:Utility

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?

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.

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.

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.

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.

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.

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

List of Documents For ID ProofCopy 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.

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.

Can you have more than one PAN?

Obtaining or possessing more than one PAN is against the law.

Can minor apply for pan card?

Yes. One can apply PAN Card on behalf of a minor. Minors may be represented through a representative

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.

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 PAN Data' 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.

Income Tax Returns

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.

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.

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.

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.

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.

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 2012-133. 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

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.

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.

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.

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”,.

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.

Q. How does ITR-1 look like?

ITR-2Q. How does ITR-2 look

like?