The new amendment seeks to bring high value spending people under the tax net. The income-tax department has issued a notification that makes compulsory the quoting of the new Permanent Account Number (PAN) or General Index Registrar (GIR) number on various transactions.Here, it is important to know what exactly is your new series PAN or GIR number. Without this, it will be difficult to complete the transaction.
New computerised Permanent Account Number (PAN): The new series PAN is mandatory in the places notified by the Board under Sub-Section 4 of Section 139 (A) of the Income-Tax Act. In the specified cities, the people will have to quote the new series PAN, whereas in the other cities, the old PAN will remain valid. The new PAN (new series) contains 10 digits.
General Index Registration (GIR) number: The GIR number is the number allotted by the assessing officer who is processing your case while framing an assessment.
Most assessees who are filing their returns regularly will haveboth these numbers, or at least one of them. They will not face too many problems, except that now, all their high value transactions can be traced and verified if they are not showing them in their income-tax returns. So, they can expect an unexpected notice from the I-T department if full disclosure of their income has not been made.
The transactions in relation to which PAN has to be quoted are:
Sale and purchase of any immovable property of and above Rs 5 lakh
Sale and purchase of a motor vehicle as defined in the Motor Vehicle Act, 1988
Time deposits exceeding Rs 50,000
A contract of value exceeding Rs 10 lakh for sale of purchase of securities
Opening an account with a banking company
Applying for the installation of a telephone connection, including a cellular telephone connection
Payment to hotels and restaurants against their bill for an amount exceeding Rs 25,000 at any timeIn case a person does not have either a PAN or GIR number, he will haveto file Form No. 60. The main details of the form are as follows:
Full name and address of the applicant
Particulars of the transaction
Amount of the transaction
Are you assessable for tax?
If yes, details of ward/circle where the last return was filed
Reasons for not having PAN/GIR number
Details of documents being produced in support of the address as given above
Proof of the address given in the application, such as a ration card, passport, driving licence, etc.
The person who will collect the information like the registering authority, manager of bank, etc. will forward the declaration to the Director of Income Tax (Investigation).People with income exceeding the taxable limit must file their tax returns, or else suffer the consequences.
The Jindals are Delhi-based chartered accountants.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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