PAN is essential for linking all financial transactions with the tax department, including tax payments, TDS/TCS credits, returns of income, wealth, and other specified transaction.
With the Income Tax Return (ITR) filing deadline approaching, many taxpayers are rushing to meet their obligations. However, some individuals face the challenge of wanting to pay their income tax but not having a Permanent Account Number (PAN) card. Let’s explore if it is possible to file an ITR without a PAN card.
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A PAN card is a 10-digit alphanumeric identifier issued by the Income Tax Department (I-T Department). It is essential for linking all financial transactions with the tax department, including tax payments, TDS/TCS credits, returns of income, wealth, and other specified transactions. It serves as a unique identifier for the taxpayer and combats tax evasion.
Structure of PAN card:
– The first three characters are alphabetic series (e.g., AAA to ZZZ).
– The fourth character indicates the status of the PAN card holder (e.g., ‘P’ for individual, ‘F’ for firm).
– The fifth character is the first letter of the PAN card holder’s last name.
– The next four characters are a sequential number.
– The last character is an alphabetic check digit.
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Who needs a PAN card?
– All existing assessees or taxpayers.
– Individuals required to furnish a return of income.
– Persons conducting business or professions with sales, turnover, or receipts exceeding Rs 5 lakh annually.
– Individuals entering into financial transactions requiring PAN card.
Obtaining a PAN card :
– It typically takes about 15 days to get a new PAN card. However, applying online and paying the processing fee via credit card can expedite the process to around five days.
– It is advisable to apply for a PAN card well in advance of the ITR filing deadline to avoid any complications.
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Whether it is necessary to have a PAN card to file ITR?
It is mandatory to quote your Permanent Account Number (PAN) while filing your Income Tax Return. Thus, If you do not have a PAN card, it is highly recommended to apply for one immediately to ensure you can meet your tax obligations
