Income Tax :- Mother's Name in PAN application alongwith Brith Certificate etc.

Friends,   CBDT has issued Notification No. 26 dated 16.05.2014 regarding some amendment in PAN application form 49A or 49AA.  Now, Mother's name will be available on PAN card if filled in PAN application.  It is optional.   Detail of notification is given below :- 

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY PART II, 

SECTION 3, SUB-SECTION (ii)] 

 

GOVERNMENT OF INDIA 

MINISTRY OF FINANCE 

DEPARTMENT OF REVENUE 

CENTRAL BOARD OF DIRECT TAXES 

 

 Notification 

 

 

New Delhi, the 16th day of May, 2014 

 

 

     S.O. 2045 (E)- In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules  further to amend the Income-tax Rules, 1962, namely:- 

 

1.  (1) These rules may be called the Income –tax (5th Amendment) Rules, 2014. 

     (2) They shall come into force on the date of their publication in the Official Gazette. 

 

2. In the Income-tax Rules, 1962, in Appendix II, for Forms 49A and 49AA, the following  Forms shall be substituted, namely:- 

 

 Download complete Notification with form 49A & 49AA

 [Notification No. 26/2014][F.No.142/15/2013-TPL] 

 

 [Ashis Mohanty] 

 Under Secretary to Government of India 

 

Note: - The principal rules were published vide Notification S.O. 969 (E), dated 26th March, 1962 and last amended by Income-tax (4th Amendment) Rules, 2014 vide Notification S.O. 997 (E), dated the 1st April, 2014. 

 

Documents required for PAN application 

Document acceptable as proof of identity, proof of address and proof of date of birth as per Rule 114 of Income Tax Rules, 1962, for individual and HUF applicants.

Proof of Identity Proof of Address Proof of date of birth Indian Citizens (including those located outside India) (i) Copy of (i) Copy of (i) Copy of a. Aadhaar Card issued by the Unique Identification Authority of India; or a. Aadhaar Card issued by the Unique Identification Authority of India; or a. Birth Certificate issued by the Municipal Authority or any office authorized to issue Birth and Death Certificate by the Registrar of Birth and Death or the Indian Consulate as defined in clause (d) of sub-section (1) of session 2 of the Citizenship Act, 1955 (57 of 1955); or b. Elector’s photo identity card; or b. Elector’s photo identity card; or b. Pension payment order; or c. Driving License; or c. Driving License; or c. Marriage certificate issued by Registrar of Marriages; or d. Passport; or d. Passport; or d. Matriculation Certificate; or e. Ration card having photograph of the applicant; or e. Passport of the spouse; or e. Passport; or f. Arm’s license; or f. Post office passbook having address of the applicant; or f. Driving License; or g. Photo identity card issued by the Central Government or State Government or Public Sector Undertaking; or g. Latest property tax assessment order; or g. Domicile Certificate issued by the Government; or h. Pensioner card having photograph of the applicant; or h. Domicile certificate issued by the Government; or h. Affidavit sworn before a magistrate stating the date of birth i. Central Government Health Scheme Card or Ex-Servicemen Contributory Health Scheme photo card i. Allotment letter of accommodation issued by the Central Government or State Government of not more than three years old; or j. Property Registration Document; or (ii) Certificate of identity in Original signed by a Member of Parliament or Member of Legislative Assembly or Municipal Councilor or a Gazetted officer, as the case may be (in prescribed format) ; or (ii) Copy of following documents of not more than three months old (a) Electricity Bill; or (b) Landline Telephone or Broadband connection bill; or (c) Water Bill; or (d) Consumer gas connection card or book or piped gas bill; or (e) Bank account statement or as per Note 2 ; or (f) Depository account statement; or (g) Credit card statement; or (iii) Bank certificate in Original on letter head from the branch(alongwith name and stamp of the issuing officer) containing duly attested photograph and bank account number of the applicant (in prescribed format). (iii) Certificate of address signed by a Member of Parliament or Member of Legislative Assembly or Municipal Councilor or a Gazetted officer, as the case may be (in prescribed format) or (iv) Employer certificate in original(in prescribed format). Note: Note: 1. In case of Minor, any of the above mentioned documents as proof of identity and address of any of parents/guardians of such minor shall be deemed to be the proof of identity and address for the minor applicant. 1. Proof of Address is required for residence address mentioned in item no. 7. 2. For HUF, an affidavit made by the Karta of Hindu Undivided Family stating name, father’s name and address of all the coparceners on the date of application and copy of any of the above documents in the name of Karta of HUF is required is required as proof of identity, address and date of birth. 2. In case of an Indian citizen residing outside India, copy of Bank Account Statement in country of residence or copy of Non-resident External (NRE) bank account statements (not more than three months old) shall be the proof of address.

Document acceptable as proof of identity and address as per Rule 114 of Income Tax Rules, 1962 for other than individual and HUF applicants

Sr. No. Status of applicant Proof of Identity & Proof of Address 1. Company Copy of Certificate of Registration issued by the Registrar of Companies. 2. Partnership Firm Copy of Certificate of Registration issued by the Registrar of Firms or Copy of partnership deed. 3. Limited Liability Partnership Copy of Certificate of Registration issued by the Registrar of LLPs 4. Association of Persons (Trust) Copy of trust deed or copy of certificate of registration number issued by Charity Commissioner. 5 Association of Person, Body of Individuals, Local Authority, or Artificial Juridical Person Copy of Agreement or copy of certificate of registration number issued by charity commissioner or registrar of cooperative society or any other competent authority or any other document originating from any Central or State Government Department establishing identity and address of such person.

 

 

 

e-TDS :- 20% TDS on Correct Pan Numbers in TDS statements.

Friends,    Approx one or more months back, I was in view that there is any lapse in the software of Income Tax department that they have charged 20% TDS on having correct Pan Numbers.   No doubt that the correct PAN's were updated through correction statements by deductor.  In the first attempt there was error in PAN's.   I had contacted customer care of TRACES but no satisfactory reply was received.   Generally, they told that send screen shoots of the error images along with active pan images etc.  Now again as I had asked them/TRACES for  the reason of charging of 20% on correct PAN , they have given below reply which is very serious for deductors :- 

Reply received from TRACES is given as under :- 

Dear Sir/Ma'am,

Thank you for contacting us, it is our pleasure to assist you.

Your query related to PAN error default is acknowledged.

It is to inform you that the provisions of section 206AA apply at the time of tax deduction, which happens   prior to the filing of statement. Thus, the deductor is expected to have a Valid PAN at the time of deduction. Only a typographical error is expected at the time of filing the TDS statement.

The demand in the hands of the deductors is being rectified in cases where the difference between the Invalid PAN and the Valid PAN is not more than 2 characters. This is being done in order to take care of the genuine typographical errors in data entry.

The rectification of demand in other cases is not done if the mismatch is more than two alpha characters & two numerics. Therefore, out of 10 characters in case of structurally valid PAN, 4 characters are being considered for rectification of demand.

Note : Please note that online Facility for PAN and Challan correction in TDS statements is now available at TRACES (www.tdscpc.gov.in). Please refer to the e-tutorials for necessary details.

Regards,

Team TDS CPC

                                 Keeping in view of the above details , deductors are required to take care in submission of PAN in  TDS return.   There are too many limitations for correction in PAN through correction statements by Income Tax Department.  

Income Tax :- Aggregate TDS Compliance at PAN level for all TAN associated with the PAN

Dear Deductor,

Greetings from CPC(TDS) team,

In our endeavor to facilitate improved TDS administration, CPC(TDS) feels glad to provide you with the feature of "Aggregated TDS Compliance" at PAN level for all TANs associated with the referenced PAN. Following are additional details related to the new feature.

What is meant by Organization's PAN:

The above indicates the PAN of an entity, having more than one TANs of its branches, associated with the referenced PAN. This will be the PAN of the Central Office, Headquarter etc., as may be appropriate. The said PAN must review the "Aggregated TDS Compliance" report on a regular basis to improve TDS compliance at Organization level.

What does the new feature offer:

-The above stated PAN can view TDS performance for all of its respective TANs by logging into TRACES as a Taxpayer.

-The Defaults generated for all the TANs can be viewed by using the feature. The following type of Defaults for the branches can be viewed:

• Total Default
• Short Payment Default
• Interest on Payment Default u/s 201
• Interest on Deduction Default u/s 201
• Late Filing Fee u/s 234E
• Interest u/s 220(2)
• PAN Errors

-The respective TANs with Defaults in their TDS Statements can be pursued to get the above resolved by taking following actions:

• Carrying out necessary corrections in the records reported in the TDS statements,
• Paying the outstanding demand and
• Submitting the Correction Statements at the earliest.

-The feature thus provides for a summary of Defaults, which assists in effective TDS administration, monitoring, control and compliance at Organization level.

The feature will be extremely useful for the purpose of complying with the provisions of Section 40(a)(ia) of the Income Tax Act, 1961 by the concerned entity, to ensure that correct information is disclosed in paragraph 27A/B of the Tax Audit Report (Form 3CD) u/s 44AB of the Act.

How to use the feature:

• You are requested to Log in to TRACES as a Taxpayer, using your credentials.
• Navigate to Aggregated TDS Compliance menu on the webpage.
• Choose the views according to Financial Year (Download Option 1) or Default Type (Download Option 2) from the drop down lists.
• Submit the Request to generate a Request Number.
• The submitted request will be made "Available" in MS Excel format, under "Requested Downloads" in the "Download" menu. The reports will usually be made available within four hours of submission.
• The report will be "Not Available" if there are No Defaults or there are statements yet to be processed. If you believe that either of the two is not true, the same can be reported to CPC (TDS).
• The feature provides for the above information for Financial Year 2007-08 onwards.

The steps to use the functionality are easy and convenient, however, e-Tutorials for the above release will shortly be made available on the portal. You can reach out to us on ContactUs@tdscpc.gov.in or call our toll-free number 1800 103 0344.

CPC (TDS) is committed to provide best possible services to you.

CPC (TDS) TEAM

CBDT Press Release dated 30.01.2014 on procedure for PAN allotment.

Government of India 

Ministry of Finance 

Department of Revenue 

Central Board of Direct Taxes 

Dated 30th January, 2013 

Press Release

The CBDT has decided to keep in abeyance the decision to change the  procedure for PAN allotment till further orders. Accordingly the operation of  circular No. 11 dated 16.01.2014 issued to PAN service providers has been  directed to be put on hold till further orders. In the meantime the old procedure of  PAN application and allotment shall continue. 

(Rekha Shukla) 

Commissioner of Income Tax (M&TP) 

Official Spokesperson, CBDT      

Procedure for PAN application w. e. f. 03.02.2014

Central Board of Direct Taxes (CBDT), Ministry of Finance, Govt. of India, as informed vide  press release dated December 30, 2014, has decided to keep in abeyance the decision to  change procedure for PAN allotment till further orders. Accordingly, the guidelines issued  by Income Tax Department (ITD) vide its letter ref no. F.No. oPAN/1/3/2003 /Part dated  January 24, 2014, regarding self-attestation of documents and verification of these  documents with original documents, has been put on hold till further orders. 

However, the guidelines issued vide CBDT notification no. S. O. 3794(E) dated  December 23, 2013 regarding changes in Rule 114(4) of Income Tax Rules, 1962  with regard to the list of Proof of Identity, Proof of Address and Proof of Date of Birth  documents will be applicable from February 3, 2014. 

Income Tax : - Press Release for allotment of PAN

Friends

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

Dated 24th January, 2013

Press Release

       The procedure for PAN allotment process will undergo a change w.e.f. 03.02.2014. From this date onwards, every PAN applicant has to submit self attested copies of Proof of Identity (POI), Proof of Address (POA) and Date of Birth (DOB) documents and also produce original documents of such POI/POA/DOB documents, for verification at the counter of PAN Facilitation Centres. The copies of Proof of Identity (POI), Proof of Address (POA) and Date of Birth (DOB) documents attached with PAN application form, will be verified vis a vis their original documents at the time of submission of PAN application at PAN Facilitation Centre. Original documents shall not be retained by the PAN Facilitation Centres and will be returned back to the applicant after verification.

(Rekha Shukla)

Commissioner of Income Tax (M&TP)

Official Spokesperson, CBDT

PAN :- Outstanding Tax Demand

As Income Tax demand has been raised by Income Tax Department in general.   There may be too many reasons like wrong data punching while submitting income tax return or Deductor has not uploaded correct TDS return of the particular PAN etc.  But in whole assessee suffer the same.   He has make correspondence with Income Tax Department to  settlement the due against him.   In case assessee has not received any demand notice and he want to check that whether any demand has been issued by Income Tax Department or not.  Assessee can check it himself through link Outstanding Tax Demand available at e-filing website.  It is locked facility means it can be checked after login at https://incometaxindiaefiling.gov.in.  Screen shoot of the same is given below after login. 

Click here to Login at https://incometaxindiaefiling.gov.in

e-TDS : Mandatory requirement of furnishing PAN in all TDS statements, bills, vouchers and correspondence between deductor and deductee [Section 206AA]

(i) The non-quoting of PAN by deductees in many cases have led to delay in issue of refund on account of problems in the processing of returns of income and in granting credit for tax deducted at source.

(ii) With a view to strengthening the PAN mechanism, section 206AA provides that any person whose receipts are subject to deduction of tax at source i.e. the deductee, shall mandatorily furnish his PAN to the deductor failing which the deductor shall deduct tax at source at higher of the following rates –

(1) the rate prescribed in the Act;

(2) at the rate in force i.e., the rate mentioned in the Finance Act; or

(3) at the rate of 20%.

For instance, in case of rental payment for plant and machinery, where the payee does not furnish his PAN to the payer, tax would be deductible @20% instead of @2% prescribed under section 194I. However, non-furnishing of PAN by the deductee in case of income by way of winnings from lotteries, card games etc., would result in tax being deducted at the existing rate of 30% under section 194B. Therefore, wherever tax is deductible at a rate higher than 20%, this provision would not have any impact.

(iii) Tax would be deductible at the rates mentioned above also in cases where the taxpayer files a declaration in Form 15G or 15H (under section 197A) but does not provide his PAN.

(iv) Further, no certificate under section 197 will be granted by the Assessing Officer unless the application contains the PAN of the applicant.

(v) If the PAN provided to the deductor is invalid or it does not belong to the deductee, it shall be deemed that the deductee has not furnished his PAN to the deductor. Accordingly, tax would be deductible at the rate specified in (ii) above.

(vi) These provisions will also apply to non-residents where tax is deductible on payments or credits made to them. However, the provisions of section 206AA shall not apply in respect of payment of interest on long-term infrastructure bonds, as referred to in section 194LC, to a non-corporate non-resident or to a foreign company.

(vii) Both the deductor and the deductee have to compulsorily quote the PAN of the deductee in all correspondence, bills, vouchers and other documents exchanged between them.

Pan :- Meaning of PAN

       Permanent Account Number (PAN) is a ten-digit alpha-numeric number, issued by the Income Tax Department. Each assessee (e.g., individual, firm, company, etc.) is issued a unique PAN. PAN enables department to link all transactions of the 'person' with the department. These transactions include tax  payments, TDS / TCS credits, returns of income / wealth / gift / FBT, specified transactions, correspondence, etc. PAN, thus, acts as an identifier for the 'person' with the tax department. PAN structure is as follows: AAAAA9999A. First five characters are letters, next four are numerals, last is a character letter

If PAN does not follow the above structure, PAN will be shown as invalid The fourth character of the PAN must be one of the following, depending on the type of assessee:

C - Company

P - Person

H - HUF (Hindu Undivided Family)

F - Firm

A - Association of Persons (AOP)

T - AOP (Trust)

B - Body of Individuals (BOI)

L - Local Authority

J - Artificial Judicial Person

G - Government

The fifth character of the PAN is the first character of the surname / last name of the person (in case of personal PAN card, the fourth character is "P") or of the name of Entity / Trust / Society / Organisation. 

PAN:-Pendency in PAN transfer request

PENDENCY IN PAN TRANSFER REQUEST

LETTER [F.NO. DIT(S)-I/AIS/NODAL/12-13], DATED 8-10-2012

Kind reference is invited to AIS instruction No. 81(copy enclosed-Annexure-I) vide which facility of auto route of PAN transfer in individual cases was withdrawn by the Directorate and new procedure of PAN transfer was defined.

2. As per new procedure for Individual PAN transfer requests, transferor/source officers (AO/Range/CIT) have to take a decision on system either to allow and confirm the request, originating from transfree/destination Assessing Officers or to reject the request.

3. On query from database, it is being observed that large number of regular PAN transfer requests are lying unattended on the part of AO/Range/CIT for allowing/confirming or rejecting. RCC wise pendency of regular PAN transfer requests is shown in Annexure.

4. It may kindly be appreciated that pendency on account of PAN transfer requests creates blocking of the PAN and further hampers processing of e-filed return. Considering the urgency of the matter, I am directed to kindly request that the field formations may kindly be directed to allow/confirm or deny, the pending PAN transfer requests, as the case may be on priority basis

ANNEXURE-I

STOPPING AUTO ROUTE OF INDIVIDUAL PAN TRANSFER

AIS INSTRUCTION NO. 81 [F.NO. SW/3/25/98/01-DIT(S)], dated 3-5-2012

Action : CIT/Range/AO/RCC.

Kind attention is invited to AIS instruction Nos. 49 and 53 wherein to facilitate field offices. Auto route of Individual PAN transfer was provided for. Under Auto PAN transfer route, the system presumes a "no objection" from transferor officer and the PAN transfer request gets automatically executed after 10 days, transferring the PAN to destination officer.

2. The Auto route facility of Individual PAN transfers, though provided with good intention to help field offices, has been noticed to have been misused, resulting into refund frauds.

3. It has therefore been decided to withdraw the facility of Auto PAN transfer. Henceforth for Individual PAN transfer requests, transferor officers have to take a decision on system either to allow and confirm the request, originating from destination Officers or to reject the request.

4. The withdrawal of Auto PAN transfer facility in Individual cases is with concurrence of Member (L&C).

5. In order to have control over pending request for Individual PAN transfers, MIS reports has been provided for status of PAN transfer available for viewing/printing to AO/Range incharge/Concerned CIT and AIS Admin at RCC, which can be accessed through the link AIS->Queries->PAN Transfer MIS and AIS->Reports->PAN Transfer MIS Reports

6. In case of any clarification or assistance on the subject matter, RCCs may please contact Sh. Ravi Dutt Sharma, Assistant Director (Systems) on Tel No. 0120-2770404 at Directorate of Income Tax (Systems).

Salary :- Mandatory quoting PAN/TAN

          Section 203A of the Act makes it obligatory for all persons responsible for deducting tax at source to obtain and quote the Tax-deduction Account No (TAN) in the challans, TDS- certificates, statements and other documents. Detailed instructions in this regard are available in this Department's Circular No.497 [F.No.275/118/87-IT(B), dated 9-10-1987]. If a person fails to comply with the provisions of section 203A, he will be liable to pay, by way of penalty, under section 272BB, a sum of ten thousand rupees. Similarly, as per Section 139A(5B), it is obligatory for persons deducting tax at source to quote PAN of the persons from whose income-tax has been deducted in the statement furnished u/s 192(2C), certificates furnished u/s 203 and all returns prepared and delivered as per the provisions of section 200(3) of the Act.

         All tax deductors are required to file the TDS returns in Form No.24Q (for tax deducted from salaries). As the requirement of filing TDS/TCS certificates, by the employee along with the return of income, has been done away with, the lack of PAN of deductees is creating difficulties in giving credit for the tax deducted. Tax deductors and tax collectors are, therefore, advised to quote correct PAN details of all deductees in the TDS returns for salaries in Form 24Q. Taxpayers liable to TDS are also advised to furnish their correct PAN with their deductors. It may be noted that non-furnishing of PAN by the deductee (employee) to the deductor (employer) will result in deduction of TDS at higher rates u/s 206AA of the Act.

Who should be contacted for inquiries regarding PAN applications?

All such inquiries should be addressed to:

	Income-tax Department	NSDL	UTIITSL
Website	www. incometaxindia. gov.in	www.tin-nsdl.com	www.utiitsl.com
Call Center	0124-2438000	020-27218080	022-67931300
Email ID		tininfo@nsdl.co.in	utiitsl.gsd@utiitsl. com
SMS		SMS NSDLPAN Acknowledgement No.   &   send   to 57575   to   obtain application   status.
Address		Income  Tax   PAN Services        Unit (Managed  by  Na­tional  Securities Depository   Lim­ited),   3'd   Floor, Sapphire   Cham­bers, Near Baner Telephone      Ex­change,      Baner, Pune - 411045	IT PAN Service Centres (managed by UTIITSL) PB no 20, Plot No 3, Sec-tor-11, CBD Belapur, Navi Mumbai 400614

Download Excel Based form for Permanent Account Number (49a, 49aa and 49B) Click Here

Can an application for PAN be made through Internet?

                     Yes, application for fresh allotment of PAN can be made through Internet. Further, requests for changes or correction in PAN data or request for reprint of PAN card (for an existing PAN) may also be made through Internet. Online application can be made either through the portal of NSDL (https://tin.tin.nsdl.com/ pan/index.html) or portal of UTIITSL (http://www.utiitsl.com/ utitsl/uti/newapp/new-pan-application jsp). Currently, the charges for applying for PAN online are the same i.e. ` 96/- ( ` 85/-is application fee and ` 11/- is the service tax) for Indian communication address and ` 962/- ( ` 85/- is appli-cation fee, ` 11/- is the service tax and ` 866/- is the postal charge) for foreign communication address, i.e. there are no additional charges. Payment of application fee can be made through credit debit card or net banking. Once the application and payment is accepted, the applicant is re-quired to send the supporting documents through couri-er/post to NSDL/UTIITSL.

How to apply for a PAN? Can an application for PAN be made on plain paper?

             PAN application should be made only on Form 49A (for Indian citizens, Indian Companies, Entities incorporated in India and unincorporated entities formed in India) and Form 49AA (for individuals not being a citizen of India, entities incorporated outside India and unincorporated entities formed outside India). A PAN application (Form 49A/49AA) can be downloaded from the website of Income Tax Department, photocopied (on A4 size 70 GSM paper) or obtained from any other source. The form is also available at IT PAN Service centers and TIN Facilitation centers. PAN application may be made on Form 49A/Form 49AA obtained from any source other than IT PAN Service Centers or TIN Facilitation Centers. For instance, a PAN application may be made on form downloaded from the website of Income Tax department or UTIISL or NSDL; or on form printed by local printers or a photocopy of downloaded or printed form.

Download Excel Based form for Permanent Account Number (49a, 49aa and 49B) Click Here

PAN:- Nature of Financial Transactions for quoting Compulsory PAN

Financial   transactions   where   quoting   of   PAN   is mandatory

It is compulsory to quote PAN in all documents pertaining to the following financial transactions :-

(a)   sale or purchase of any immovable property valued at five lakh rupees or more;

(b)       sale or purchase of a motor vehicle or vehicle, [the sale or purchase of a motor vehicle or vehicle does not include two wheeled vehicles, inclusive of any detach¬able side-car having an extra wheel, attached to the motor vehicle;

(c)        a time deposit, exceeding fifty thousand rupees, with a banking company ;

(d)       a deposit, exceeding fifty thousand rupees, in any account with Post Office Savings Bank;

(e)       a contract of a value exceeding one lakh rupees for sale or purchase of securities;

(f)        opening a bank account;

(g)       making an application for installation of a telephone connection (including a cellular telephone connection);

(h) payment to hotels and restaurants against their bills for an amount exceeding twenty-five thousand rupees at any one time ;

(i) payment in cash for purchase of bank drafts or pay orders or banker's cheques for an amount aggregating fifty thousand rupees or more during any one day;

(j) deposit in cash aggregating fifty thousand rupees or more with a bank during any one day;

(k) payment in cash in connection with travel to any foreign country of an amount exceeding twenty-five thousand rupees at any one time.

(l) making an application to any banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) or to any other company or institution, for issue of a credit or debit card;

(m) payment of an amount of fifty thousand rupees or more to a Mutual Fund for purchase of its units;

(n) payment of an amount of fifty thousand rupees or more to a company for acquiring shares issued by it;

(o) payment of an amount of fifty thousand rupees or more to a company or an institution for acquiring debentures or bonds issued by it;

(p) payment of an amount of fifty thousand rupees or more to the Reserve Bank of India, constituted under section 3 of the Reserve Bank of India Act, 1934 (2 of 1934) for acquiring bonds issued by it;

(q) payment of an amount aggregating fifty thousand rupees or more in a year as life insurance premium to an insurer as defined in clause (9) of section 2 of the Insurance Act, 1938 (4 of 1938);

(r)    payment to a dealer,

           (i)    of an amount of five lakh rupees or more at any one time; or

        (ii)    against a bill for an amount of five lakh rupees or more, for purchase of bullion or jewellery:

How to know Invalid PAN in your e-tds/e-tcs return

Now, a good facility has been added by TIN center under TAN Registration.  List of invalid PAN's can be downloaded after login TAN Registration.  Location for download the Invalid Pan's can be viewed in below picture. 

Secondly, in above picture, it is also clear that how many Defaults are available in your TAN numbers and how many Defaults are in UNREAD position.   

To download the List of Invalid PAN's, Just select the option given as List of Invalid PAN's under TDS/TCS.    On pressing the same the below screen will be appeared. 

Yes, only Financial Year, Form No's and Quarter Number is required for download the Invalid PAN List.   After that to open the requested/downloaded file, 15 digit  Provisional Receipt No./Token No of the accepted Regular Statement.  Excel format of the downloaded file will be available as shown below :-

                         

Income Tax-Notification regarding PAN furnishing for certain transactions

AMENDMENT IN RULE 114B OF THE INCOME-TAX RULES, 1962

Income-tax (Fifth) Amendment Rules, 2011 – Amendment in rule 114B

NOTIFICATION NO. 27/2011 [F. NO. 149/122/2010-SO(TPL)], DATED 26-5-2011

In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely :—

1. (1) These rules may be called the Income-tax (Fifth Amendment) Rules, 2011.

    (2) They shall come into force on the 1st day of July, 2011.

2. In the Income-tax Rules, 1962, in rule 114B,—

    (i)  in the Explanation (a), in clause (k), for the words “tour operator” the words “tour operator, or to an authorized person as defined in clause (c) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999)” shall be substituted.

   (ii)  in clause (l) for the words “for issue of a credit card” the words “for issue of a credit or debit card” shall be substituted.

   (iii)  after clause (p) and before the first proviso, the following clauses shall be inserted, namely :—

“(q)  payment of an amount aggregating fifty thousand rupees or more in a year as life insurance premium to an insurer as defined in clause (9) of section 2 of the Insurance Act, 1938 (4 of 1938);

(r)  payment to a dealer,—

(i)  of an amount of five lakh rupees or more at any one time; or

(ii)  against a bill for an amount of five lakh rupees or more,

for purchase of bullion or jewellery;”.

How to Know Address of PAN

Friends,  It is general requirement to know what is Address of a PAN.  There may be many sources to know the address of PAN, out of which one is Form 26AS.  Form 26AS do not display only TAX ledger with Income Tax Department of a Particular Pan, but also display Address of A PAN.  By default this link is hide.  With the help of  (+) or (-) button, address of a PAN can be checked as shown in black circle in below picture. 

(-) or (+) button can be changed with the help of mouse button.

Pan Card exceeds the Numbers of Tax Payers

A report says number of PAN cards far exceeds the number of tax payers. This raises concern that tax dodgers may be using multiple cards to hide income. The Income Tax ( I- T) department has issued close to 10 crore permanent account number ( PAN) cards but the number of taxpayers in the country is only one- third of this number, giving rise to serious concern that many tax dodgers are using two or more cards to conceal income.

According to the latest report of the Comptroller and Auditor General of India ( CAG), while 958 lakh PAN cards were issued till the end of March 2010 only 340.9 lakh tax returns were filed during 2009- 10.

A senior official told M AIL T ODAY that instances of assessees with two or more PAN cards have been detected which show that multiple cards are being used to hide income.

The PAN card allotted to a taxpayer is the unique identification number that helps track individual tax compliance. It has to be furnished for all major transactions and opening bank accounts so that the IT authorities can trace the money trail of assessees. ” However, this prime purpose for which a PAN card is issued gets defeated if taxpayers get hold of more than one card,” a senior official pointed out.

An I- T official confirmed that the department has now initiated the exercise to weed out duplicate PAN cards but it is will take a long time given the huge database that has to be sifted through.

According to sources, the I- T department is looking for similar names, residential addresses and identical dates of birth to detect such multiple cardholders and check tax evasion.

PAN cards are issued by the I- T department, but the front- end of the process has been outsourced to UTI Technology Services Ltd and the National Securities Depository Ltd since July 2003.

The CAG report points out that the Central Board of Direct Taxes ( CBDT) needs to identify the reasons for the huge gap between the number of PAN cards and the number of taxpayers who actually file returns. ” The gap might be due to the issuance of duplicate PAN cards and death of some PAN card holders,” it adds.

According to sources, the death of PAN card holders can account for only a small portion of this gap. ” Some of the PAN card holders use them for establishing their identity and may genuinely not be required to pay tax. But there is a huge number of individuals who are misusing multiple PANs to dodge taxes,” a senior official said. It is this category that the CAG wants the I- T department to crack down on so that tax evasion is checked and revenue collection gets a boost, a senior official said.

The report points out that the growth in direct tax revenue has not been keeping pace with the growth in gross domestic product ( GDP). The logic is that a higher GDP growth rate leads to higher incomes, which should translate into higher taxes.

However, this is not happening. The report said, for every unit of growth in the GDP, direct taxes grew from 1.7 per cent in 2005- 06 to 2.6 per cent in 2007- 08. However, this figure came down to 0.5 per cent and 0.8 per cent in 2008- 09 and 2009- 10, respectively. This sharp decline in tax buoyancy is a matter of concern, the report added.

Pan Validation and Confirm Your Name

Know Your Pan, How to know Name of Your Pan, Bulk Pan Inquiry, Online Pan Verification 

It is very serious problem to know name of the Pan or Correctness of Name of the Pan, while New Registration of e-filing of Income Tax Return and letter received from Income Tax Department regarding incorrect Pan of deductee in e-tds/e-tcs return. No doubt it is human error if we type again and again Pan Number in etds return there are lot of chances to write wrong any digit of Pan out of 10 digits.   Due to electronic system, 100% accuracy is required.   There are two source to check the confirmation of  Name of Pan.  

1. Through e-payment on www.tin-nsdl.com
2. Through ST-1 form on www.aces.gov.in

                             Out of above two,  form ST-1 Procedure at www.aces.gov.in is best to check bulk Permanent Account Number inquiry.  There are approx 11 steps to check name of Pan at www.tin-nsdl.com whereas only one time registration is required at www.aces.gov.in.   Simple enter your Pan number and Check it's Name.  Complete procedure is given as under :-

• Login www.aces.gov.in
• In left hand, Click on "Service Tax" Button.
• If new user, free register  yourself on clicking at "New Users to click here to Register with ACES otherwise enter your User Name and Password to Logon.
• Click on Fill ST-1 under REG link.
• Now enter Pan Number  in field "Pan (if alloted) "
• Click on Blank space
• Name of the Pan will be appeared in the field "Name of applicant (as appearing in Pan).

Really, it is too much easy/simple  to check name of Pan in bulk quantity

Picture view of ST-1 at www.aces.gov.in is given as under