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Pan Card
 
As per Securities and Exchange Board of India (SEBI) Circular dated April 27, 2007, Permanent Account Number (PAN) has been made the sole identification number for all participants transacting in the securities market, irrespective of the amount of transaction, effective July 02, 2007.
 
This means that submission of copy of PAN card is mandatory for all investors (including NRIs) for investing with mutual funds with effect from July 02, 2007. Those investors not having a PAN card should apply for PAN immediately and applications for investment should be accompanied by evidence of having applied for PAN (acknowledgement copy of Form 49A). Such investors should, in addition, submit a declaration in Form 60/61 with address proof, if the investment is for a value of Rs.50,000 or more.
 
Please note that effective July 02, 2007, all transaction without PAN verification / evidence of having applied for PAN (along with Form 60/61 where applicable) for all holders, including guardians, are liable to be rejected.
 
 
PAN FAQs
 
  • What are the benefits of obtaining a Permanent Account Number [PAN] and PAN Card?
    A PAN number has been made compulsory for every transaction with the Income Tax department. It is also mandatory for numerous other financial transactions such as opening of bank accounts, availing institutional financial credits, purchase of high-end consumer item, foreign travel, transaction of immovable properties, dealing in securities etc. A PAN card is a valuable means of photo identification accepted by all government and non-government institutions in the country.

  • I have lost my PAN card but remember my number. Do I necessarily need to get a fresh card?
    With your PAN you can continue to transact with the Income Tax department. However, in respect of other agencies you may encounter constraints without a PAN card since it doubles as a photo identity card.


  • I have been allotted two PANs. Which number should I use?
    You may retain any one of the numbers and surrender the other through a letter addressed to your jurisdictional Assessing Officer.


  • If I do not surrender the additional PAN number, is there any problem?
    Yes. It is illegal to have two PANs and the penalty for such offence is Rs.10,000/-


  • By mistake I have been using different PANs for different purpose like one for my demat account and another for filing my Income Tax return and payment of taxes. How do I set this right?
    It is advisable to retain only one PAN, preferably the one used for Income Tax purpose and surrender the other number immediately. The institutions where the latter number has been quoted should be informed of the correct PAN.


  • Is it mandatory to file return of income after getting PAN?
    No. Return is to be filed only if you have taxable income.
 
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