SECTION 139A l PERMANENT ACCOUNT NUMBER

847. Scheme allotting permanent account number - Salient features explained

1. A taxpayer is at present identified in the records of the Income-tax Department by the number allotted to him in the General Index Register (GIR) maintained in the Income-tax Office concerned. This number changes as and when the jurisdiction over his case shifts from one Income-tax Office to another (either in the same or in another town) or when new General Index Registers are prepared in the Income-tax Offices. This leads to several difficulties in linking the various documents like returns, letters, challans, etc., received in the Income-tax Offices with the file of the particular taxpayer and, in several cases, avoidable inconvenience is caused to the taxpayer. For example, in a number of cases, credit is not given for the advance tax paid because the relevant challans have not been identified and placed in the relevant files.

2. As a major step towards improving this situation, the Central Board of Direct Taxes have decided to introduce a system of allotting a “Permanent Account Number” to each taxpayer. This number will remain unchanged even if the case of a taxpayer is transferred from one Income-tax Office to another in the country.

3. According to the scheme of permanent account numbers finalised by the Central Board of Direct Taxes, the permanent account number to be allotted to a taxpayer would consist of 9 digits, 2 letters of the English alphabet and 3 hyphens. The first hyphen would appear after 2 digits, the second after the next 3 digits and the third after the 2 letters. Of the 2 letters the first is a code letter indicating the status of the assessee. For this purpose, the following code is to be utilised :

Association of persons       “A”         Hindu undivided family            “H”

             “B”         Individual                              “P”

Company                          “C”         Local authority                       “L”

Firm                                 “F”         Artificial juridical person          “J”

The second letter to be written is a code letter designed to ensure that the number has been written correctly.

4. Below the number, a line would be drawn underneath, would be indicated in an abbreviated form, the name of the town and the Distt./Circle/Ward concerned where the particular taxpayer is assessed for the time being.

5. An illustrative permanent account number is shown below :

11-954-CQ-1945

 

Cal/HC(A)

In the above example, 11-954, 1945 is the number allotted to the taxpayer. The letter “C” indicates that the taxpayer is a “Company”. The letter “Q” is a code letter designed to ensure that the number has been written correctly. The notation below the line indicates that the assessee is being assessed by the Income-tax Officer, A-Ward, Hundi Circle at Calcutta.

6. It may sometimes happen that a taxpayer is assessed in respect of his own tax liability and also in his capacity as a “representative assessee”. In such cases, it will lead to unnecessary confusion if the assessment of the taxpayer in respect of his own tax liability and in his capacity as a “representative assessee” are made on the basis of the same permanent account number. The Central Board of Direct Taxes have, therefore, decided to have a separate series of Permanent Account Numbers for allotment to representative assessees. The numbers in this series will consist of 8 digits, 2 letters, and 2 hyphens. The first hyphen will appear after 4 digits and this will be followed by 2 letters which, in turn, will be followed by the second hyphen. Thereafter, the remaining 4 digits of the number would be written. Of the two letters, the first will be ‘R’, which would signify that the number relates to “representative assessee”. The second letter will be a code letter designed to ensure that the number has been written correctly. Here also, there will be a notation below the number and it would be written in the same way as in the case of assessees other than representative assessees. An illustrative example of a number which would be allotted to a representative assessee is given below :

1234-RV-1479

 

Cal/VI(G)

7. For the purpose of allotting permanent account numbers, the Central Board of Direct Taxes have allotted blocks of Permanent Account Numbers to different Commissioners of Income-tax all over India. Out of these blocks, the Commissioners will allot sub-blocks of numbers to each Income-tax Officer equal to the number of assessees in the Income-tax Officer charge. Individual taxpayers will be allotted their respective numbers by the Income-tax Officers out of the sub-blocks of numbers allotted to them. The Income-tax Officers have already started allotting numbers to individual assessees. Each taxpayer will be hearing shortly about the permanent account number allotted to him. If a taxpayer does not get the intimation regarding the allotment of a permanent account number by May 31, 1972, he is requested to contact the Income-tax Officer having jurisdiction over his case and find out the number allotted to him.

8. The permanent account number allotted to a taxpayer will remain unchanged as long as he continues to be an assessee. However, when the case of taxpayer is transferred from one Income-tax Officer to another, the appropriate part of the notation below the line will change. When this happens, an intimation will be sent to the taxpayer immediately.

9. The introduction of the system of permanent account numbers will facilitate the quick identification of letters and other documents of taxpayers and enable the Income-tax Department to deal with their tax matters expeditiously. This aim can, however, be achieved only if the taxpayers indicate their Permanent Account Numbers correctly in all future correspondence with the income-tax authorities and in other tax documents such as returns, challans, etc., furnished by them. In this connection, it is suggested that each taxpayer should get a rubber stamp made of the permanent account number allotted to him and ensure that it is reproduced clearly on all the tax documents.

10. If a taxpayer in West Bengal has been allotted permanent account numbers by more than one Income-tax Officer he is requested to bring to the notice of the Income-tax Officer (PAN Cell), Aayakar Bhawan, P-7, Chowringhee Square, Calcutta, details of the numbers allotted to him so that all the relevant assessment records may be brought together and steps taken to cancel any extra number wrongly allotted to him.

Press Note : Issued by Commissioner of Income-tax, Calcutta.

848. Specified date from which all permanent account numbers allotted thereinbefore shall be deemed to have been allotted

In exercise of the powers conferred by sub-section (4) of section 139A of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby specifies the 1st day of April, 1976, as the date from which all permanent account numbers allotted to assessees before the said date shall be deemed to have been allotted to them under the provisions of section 139A of the said Act.

Notification : No. SO 274(E), dated 1-4-1976.

849. Specified date for purpose of allotment of permanent account numbers under new series

NOTIFICATION 1

In exercise of the powers conferred by sub-section (4) of section 139A of the Income-tax Act, 1961 (43 of 1961), the Board hereby specifies that every person who is assessed or liable to be assessed by Assessing Officer falling under the control of income-tax authorities mentioned in the Table below and,—

(a)  who has not been allotted a permanent account number and,—

  (i)  if his total income or the total income of any other person in respect of which he is assessable under the Income-tax Act, 1961, during any previous year exceeded the maximum amount which is not chargeable to income-tax; or

(ii)  carrying on any business or profession whose total sales, turnover or gross receipts are or is likely to exceed fifty thousand rupees in any previous year; or

(iii)  who is required to furnish a return of income under sub-section (4A) of section 139 of the Income-tax Act, 1961; or

(b)  who has been allotted a permanent account number other than under the new series,—

shall apply within the period of thirty days beginning with the 1st day of June, 1996 and ending on 30th day of June, 1996 in respect of assessment year 1996-97, to the concerned Assessing Officer falling under the control of the income-tax authorities mentioned under the Table below for the allotment of a permanent account number under the new series, namely :—

TABLE

Income-tax authorities

   1.  Chief Commissioners of Income-tax - I, II and III, Delhi;

   2.  Chief Commissioners of Income-tax - I, II and III, Mumbai

   3.  Chief Commissioners of Income-tax - I and II, Madras excluding Commissioners of Income-tax, Coimbatore and Madurai;

   4.  Commissioners of Income-tax (Central) - I and II, Delhi;

   5.  Commissioners of Income-tax (Central) - I, II and III, Mumbai;

   6.  Commissioners of Income-tax (Central) - I and II, Madras excluding Central Circles, Coimbatore and Madurai;

   7.  Directors of Income-tax (Exemption), Delhi, Mumbai, and Madras;

  (c)  Every person to whom clause (a) or (b) of this notification becomes applicable on or after the 1st day of any previous year relevant to the assessment year 1997-98 or any subsequent year, shall apply for the allotment of a permanent account number under the new series to the concerned Assessing Officer falling under the control of the income-tax authorities mentioned above during any period on or before the 30th day of June, in any assessment year subsequent to the assessment year 1996-97 :

       Provided that the persons to whom permanent account number under the new series has already been allotted shall not apply for such number again.

Notification: No. SO 379(E), dated 30-5-1996, as amended by, Notification No. SO 426(E), dated 10-6-1996.

NOTIFICATION 2

In exercise of the powers conferred by sub-section (4) of section 139A of the Income-tax Act, 1961 (43 of 1961), the Board hereby specify the last date for filing applications for allotment of Permanent Account Number under the new series as the 30th day of November, 1996 for assessment year 1996-97 in respect of every person who is required to file such an application.

Notification: No. SO 714(E), dated 14-10-1996.

Notification 3

In exercise of the powers conferred by sub-section (4) of section 139A of the Income-tax Act, 1961 (43 of 1961), Central Board of Direct Taxes hereby specifies that every person who is assessed or liable to be assessed by an Assessing Officer under the control of any income-tax authority in India and,—

(a)  who has not been allotted a permanent account number and—

  (i)  if his total income or the total income of any other person in respect of which he is assessable under the Income-tax Act, 1961, during any previous year exceeded the maximum amount which is not chargeable to income-tax; or

(ii)  carrying on any business or profession whose total sales, turnover or gross receipts are or is likely to exceed fifty thousand rupees in any previous year; or

(iii)  who is required to furnish a return of income under sub-section (4A) of section 139 of the Income-tax Act, 1961; or

(b)  who has been allotted a permanent account number other than under the new series,

shall apply before the 31st day of August, 1998 in respect of assessment year 1997-98 to the Assessing Officer, having jurisdiction in respect of such person, for the allotment of a permanent account number under the new series.

2. Every person to whom clause (a) or clause (b) of paragraph 1 of this notification becomes applicable on or after the 1st day of any previous year relevant to the assessment year 1998-99 or any subsequent assessment year,

shall apply for the allotment of a permanent account number under the new series to the Assessing Officer, having jurisdiction in respect of such person,—

(a)  before the 31st day of August in respect of assessment year 1998-99;

(b)  on or before the 30th day of June in respect of assessment year 1999-2000 or any subsequent assessment year : 

Provided that the persons,—

  (i)  who had applied or are required to apply for the allotment of a permanent account number under the new series in accordance with the notification of the Government of India in the Ministry of Finance, Department of Revenue (Central Board of Direct Taxes) Number S.O. 379(E) dated the 30th May, 1996; or

(ii)  to whom permanent account numbers under the new series have already been allotted,

shall not apply for allotment of a permanent account number under the new series under this notification.

Notification : No. SO 123(E), dated 11-2-1998 as amended by Notification No. SO 354(E), dated 28-4-1998 and Notification No. SO 543(E), dated 30-6-1998.

850. Specified date for purpose of allotment of permanent account numbers under new series in Form No. 49A - Last date of filing such application extended up to 30-6-1998

1. The filing of application in the prescribed Form 49A for allotment of Permanent Account Number has been made mandatory for most of the taxpayers under the provisions of section 139A and the notifications to this effect have already been issued. The last date for filing such application has been extended up to 30th June, 1998 vide  Notification No. 10582, dated 28th April, 1998.

2. In terms of rule 114, the application is to be made in duplicate, in Form 49A. In order to avoid the additional burden of feeding the data twice, it is requested that only one copy of Form 49A may be retained by the department. The other copy of the Form submitted by the assessee could be returned as acknowledgement for the submission of the Form.

3. The above instruction may be brought to the notice of all the Assessing Officers in your region.

Circular : Letter [F. No. 225/75/98-IT(A-II)], dated 19-5-1998.

851. Last date for filing application for permanent account number (PAN) for income-tax payers further being extended to 31st of August, 1998

The last date for filing application for allotment of Permanent Account Number (PAN) was extended to 30th June, 1998 from 30th April, 1998 vide Notification S.O. No. 354(E), dated 28th April, 1998 for income-tax payers in respect of assessment year 1997-98. The specified last date was 30th June of the relevant assessment year for the assessment year 1998-99 and onwards. The above notification was applicable for the whole of the country except the three metropolitan cities of Mumbai, Chennai and Delhi.

A large number of representations have been received from the tax payers and tax professionals from various parts of the country for further extending the last date i.e., 30th June, 1998 in view of insufficiency of time for filing the requisite application forms. Taking note of these representations, Central Board of Direct Taxes has decided to further extended the last date from 30th June, 1998 to 31st August, 1998 for applying for PAN for every person who is assessed or liable to be assessed in respect of assessment years 1997-98 and 1998-99. Necessary notification is being issued separately.

Press Release :  Issued by the CBDT, Ministry of Finance.

852. Application in Form 49A for issue of PAN - One copy to be returned as acknowledgement

The filing of application in the prescribed Form No. 49A for allotment of permanent account number has been made mandatory for most of the taxpayers under the provisions of section 139A and the notifications to this effect have already been issued. The last date for filing such application has been extended up to 30th June, 1998, vide Notification No. 10582, dated 28th April, 1998.

In terms of rule 114, the application is to be made in duplicate, in Form No. 49A. In order to avoid the additional burden of feeding the data twice, it is requested that only one copy of Form No. 49A may be retained by the Department. The other copy of the Form submitted by the assessee could be returned as acknowledgement for the submission of the Form.

853. Specified class or classes of persons who shall apply to Assessing Officer for allotment of Permanent Account Number under section 139(1A)

Notification 1

In exercise of the powers conferred under sub-section (1A) of section 139A of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies following class or classes of persons, who shall apply to the Assessing Officer for the allotment of a permanent account number, namely,—

1. (i) Exporters and importers, as defined in clauses (20) and (26) respectively of section 2 of the Customs Act, 1962 (52 of 1962) who are required to obtain an importer-exporter code under section 7 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992);

(ii) assessees as defined in clause (3) of rule 2 of Central Excise Rules, 1944;

(iii) persons who issue invoices under rule 57AE requiring registration under the Central Excise Rules, 1944; and

(iv) assessees as defined in clause (6) of section 65 of the Finance Act, 1994 (32 of 1994) relating to service tax.

2. As on the date of this notification, a person falling within a class or classes of persons referred to in clauses (i) to (iv) of paragraph 1, shall apply for the allotment of permanent account number within 15 days of the date of publication of this notification in the Official Gazette.

3. A person who may fall within such class or classes of persons, after the date of this notification, as is—

(a)  referred to in clause (i), shall apply for the allotment of permanent account number before making any export or import, as the case may be;

(b)  referred to in clauses (ii) and (iii), shall apply for the allotment of permanent account number, before making an application for registration under the Central Excise Rules, 1944; and

  (c)  referred to in clause (iv), shall apply for the allotment of permanent account number before making an application for registration under the Service Tax Rules, 1994.

4. Application for the allotment of permanent account number under new series for the purposes of this notification shall be made to the Assessing Officer in Form No. 49A of the Income-tax Rules, 1962.

Notification : No. SO 775(E), dated 29-8-2000, as corrected by Notification No. 11480 [F. No. 142/19/2000-TPL], dated 8-9-2000.

Notification 2

In exercise of the powers conferred under sub-section (1A) of section 139A of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies following class or classes of persons, who shall apply to the Assessing Officer for the allotment of a permanent account number, namely:—

   1.  Persons registered under the Central Sales Tax Act, 1956 (74 of 1956) or the general sales tax law of the appropriate State or Union territory, as the case may be.

   2.  As on the date of this notification, a person falling within a class or classes of persons referred to in paragraph (1) shall apply for the allotment of permanent account number within thirty days of the date of publication of this notification in the Official Gazette.

   3.  A person who may fall within such class or classes of persons after the date of this notification, as is referred to in paragraph (1), shall apply for the allotment of permanent account number (PAN) before making any application for registration under the Central Sales Tax Act, 1956 or the general sales tax law of the appropriate State or Union territory, as the case may be.

   4.  Application for the allotment of permanent account number under new series for the purposes of this notification shall be made to the Assessing Officer in Form No. 49A of the Income-tax Rules, 1962.

Notification : SO 1206(E), dated 12-12-2001.

854. Notified dates from which provisions of sub-section (5B) shall apply in respect of any class or classes of persons

In exercise of the powers conferred by the first proviso to sub-section (5B) of section 139A of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the following dates from which the provisions of the said sub-section shall apply in respect of the following class or classes of persons, namely :—

(a)  the 1st day of April, 2002, in respect of—

  (i)  a 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);

(ii)  a co-operative society engaged in carrying on the business of banking;

(b)  the 1st day of June, 2001, in respect of every other person.

Notification : No. SO 511(E), dated 11-6-2001.