PAN-SERIES 7 (Why )

1.       Why PAN

·        For Payment of Direct Taxes

·        To file Income tax Returns

·        To avoid deduction of tax  at higher rate by the deductor

·        To enter into specific transaction such as:

(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 other than two wheeler;

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

(d)    Payment in cash in connection with travel to any foreign country of an amount exceeding twenty five              thousand rupees at any one time;

(e)    Payment of an amount of fifty thousand or more to RBI for acquiring Bonds;

(f)     Payment of an amount of fifty thousand or more to company or institution for acquiring bonds or                   debentures;

(g)    Payment of an amount of fifty thousand or more to company for acquiring shares;

(h)    Payment of an amount of fifty thousand or more to Mutual Fund for purchase of its units;

(i)      Making an application for credit card;

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

(k)    Other transaction as per rule 114B,

(l)      Payment exceeding five lakh rupees for purchase of bullion and jewellery

2.      Events to be reported to A.O.?

·        Death of a PAN holder

·        Discontinuation of Business

·        Dissolution of Firm

·        Partition of HUF,

·        Liquidation or Winding Up of company

·        Merger or Amalgamation or Acquisition etc. of companies