There can be a number of reasons when a person might want to move from one place to another due to change in job, marriage or when you secretly fell in love with a place or feel nostalgic and shifted to the place of you origin etc. In such situations, a person might get demoralized with the difficulties that he or she will face while shifting particularly the changes that are to be made in various documents like the PAN card.
Pan Card And Its Significance
A PAN card is a ten digit alpha numeric number which is issued by the income tax department to every salaried individual.The PAN is issued to ensure the prevention of illegal tax evasion by corporate, individuals, and firms.Some of the benefits of the PAN card are
- The PAN card acts as a KYC document to avail a number of services like EPF, PF, opening a bank account etc. This is because besides acting as an identity proof the most important feature of the PAN card is this that it comes with a unique alpha numeric number by which the status, firm, company, HUF(Hindu Undivided Family), Assessing officer and trust can be known.
- The first three characters of a PAN card comprises of an Alphabetic series starting from AAA to ZZZ.
- The fourth character indicates the status of an individual. For instance,”P” stands for individual,“F” stands for Firm,”C” stands for Company,”H” stands for Hindu Undivided Family,”A” stands for AOP etc.
- The fifth character represents the first alphabet of the PAN holder’s surname.
- The PAN card also comprises of 4 numbers. This number series starts from 0001 to 9999.
- The final character on the card is the alphabetic check digit.
- The PAN also acts as a valid identity card that is issued by the Income Tax Department. In any sort of transaction be it transaction of taxable salary, sale, and purchase of assets etc. the identification provided in the PAN card is used to track the financial transaction and prevent illegal tax evasion.
- Further, PAN card number is used for various other situations like while opening a bank account, when depositing more than Rs 50000, while entering a contract of more than Rs 1 lakh, in the sale and purchase of assets etc.
Migration of Pan Card
Whenever a person migrates from one place to another it is also important that they migrate their PAN card. Migration of PAN means applying for a new Assessing Officer of the place where the person is migrating. This must be done so as to enable the assessing officer to process the returns filed by a person from his or her new address. The following points should be kept in mind while applying for the process of migration.
How to Apply for PAN Migration?
An application must be sent to the current Assessing officer to initialize the process of PAN transfer. The process involves the PAN migrate request by the new Assessing Officer of the individual. Once the application is filed for PAN transfer the previous Assessing officer will have to grant permission for the transfer. After the previous AO grants permission, the application then moves to the commissioner of Income Tax for further approval. Until the permission for transfer is granted, the new Assessing officer will not have the jurisdiction over the Income Tax filled by you.
Identification of the new assessing officer: The new assessing officer can be identified by searching the “field offices” column in the official website of the Income Tax of India. It must be noted that after retirement PAN card jurisdiction must be transferred to Assessing officer where a person settles after retirement.
Your current AO can be identified by visiting the official website of the Income Tax Department in the “Know your jurisdiction AO” column.
The Pan can also be migrated using Aaykar Setu app of the Income Tax Department.To migrate the PAN card, click on “got a problem” option in the app and then click on “PAN migration” option. You can download the app here. https://play.google.com/store/apps/details?id=com.taxmann.aayakarsetu&hl=en
The Government has decided to mandate linking Aadhaar with PAN for income tax filing, follow the link for step by step explanation on How to link Aadhaar with PAN card.