Eligibility for Holding PAN

As per Section 139A (1), the following are required to have a Permanent Account Number

  • All individuals whose total income exceeds the starting point of the Income Tax slabs. This also individuals whose income is chargeable to tax on behalf of others such as the income of the parents which also includes the earnings of the minor’s child, etc.
  • Charitable trusts required to file returns, as per Section 139(4A)
  • Individuals running a business/profession wherein the total sale or income is likely to go beyond Rs. 5 Lakhs
  • Importer/exporter who needs to obtain Import Export code
  • Anyone who will receive payments post TDS collection
  • The person who is required to pay excise duties.
  • Anyone who issues invoices under Rule 57AE
  • A person who has a responsibility to pay service tax and his/her agent
  • Persons registered under the Central Sales Tax Act or the general sales tax law of the relevant state or union territory
  • Any individual who wishes to participate in any financial transactions which mandate furnishing of PAN details:
    • A person who is not covered in any of the above categories can also apply for a PAN Card voluntarily.
    • According to Sec 160, a minor, non-resident, court of wards and anyone defined by law as “an idiot or a lunatic”, can also apply for a PAN. In such cases, the application has to be made by a Representative Assessee, on the behalf of such applicant.