- Date : 31/01/2023
- Read: 4 mins
Want to know more about TIN and PAN? Read the article to understand TIN and PAN.
The Tax Information Network (TIN) and Permanent Account Number (PAN) play crucial roles in the tax system of a country, both for individuals and corporates. TIN is a system used by the government to track and manage tax-related information, while PAN is a unique identification number assigned to taxpayers. This article provides detailed information about the importance of PAN, and TIN.
How TIN helps the IT Department?
Managed by NSDL e-Governance Infrastructure Ltd, TIN acts as a repository of information across the nation and aids the department in the collection, monitoring, and processing of direct taxes through the use of technology.
What services does TIN provide?
A few prominent services provided by Tax Information Network are mentioned below:
e-TCS/ E-TDS
Both corporate and non-corporate entities are required to deduct tax at the source before making payments and submitting them to the government. After submitting the tax, the entity responsible for deducting the tax must provide a TDS return which includes all relevant details.
To enhance the automation and efficiency of TDS return processing, the income tax department introduced the "Electronic Filing of Returns of Tax Deducted at Source Scheme 2003".
Online Tax Accounting System OR OLTAS
OLTAS is used by the Income Tax department to keep track of taxes paid through banks. Following challans are available for tax payments:
- ITNS 280 for corporate tax and income tax
- ITNS 281 for depositing tax collected at source and tax deducted at source for both non-corporations and corporations.
- ITNS 285 for equalization levy payment
- ITNS 286 for payouts under the Income Declaration Scheme, 2016
- ITNS 287 for payouts under the Pradhan Mantri Garib Kalyan Yojana
Equalization Tax (Levy):
An equalization levy was established in 2016 as a way to tax digital transactions and the income accruing in India from foreign companies. The service recipient must withhold the equalization levy amount before making any payments. The following are the two conditions that must be met:
- Service provider must be non-resident
- A single service provider receives an annual payment of more than INR 1,00,000
Presently, this tax is applicable on the following:
- Advertising online
- Any provision for advertising online
TDS on property sale
TDS is required to be withheld by the purchaser on payments for the sale of immovable property when the sale consideration exceeds Rs. 50,00,000, as per Section 194IA of the Income Tax Act. This applies at a rate of 1% and has been in effect since June 1st, 2013.
The Tax Information Network has made Form 26QB available for paying taxes on the sale of a property. Following things to be kept in mind while paying:
- Tax deduction @1%
- Check the seller's PAN
- Include PANs of both the buyer and the seller
- No corrective measures are available to fix mistakes related to PAN.
Also Read: To know more about investment
Applying for a Permanent Account Number (PAN)
Taxpayers can apply for PAN through a TIN Facilitation Centre. They may choose from two types of PAN applications:
Applicants who have never applied for a Permanent Account Number (PAN) can do so through Form 49A (for residing and non-residing Indians) and 49AA (for foreign citizens).
The following documents are required along with the application:
Any one of the following (for identity proof)
- Copy of Aadhar card or Driving license or Passport or Ration card
Any one of the following (for address proof)
- Copy of Aadhar card or Driving license or Passport or Post office passbook with applicant's address or latest copy (less than 3 months old) of electricity/ water/ broadband bill
Also Read: To know more about markets
How can an individual track status of an application for PAN?
An individual can check the status of the PAN application either by calling the call centre (020 – 2721 8080) or by visiting the NSDL website.
Also Read: To know more about taxes
This article provided an in-depth understanding of the importance of TIN, and PAN, as well as how to apply for them. By understanding the role of each of these components in the taxation system, taxpayers can ensure that they are compliant with their tax obligations and enjoy the many benefits of a secure and reliable taxation system.
The Tax Information Network (TIN) and Permanent Account Number (PAN) play crucial roles in the tax system of a country, both for individuals and corporates. TIN is a system used by the government to track and manage tax-related information, while PAN is a unique identification number assigned to taxpayers. This article provides detailed information about the importance of PAN, and TIN.
How TIN helps the IT Department?
Managed by NSDL e-Governance Infrastructure Ltd, TIN acts as a repository of information across the nation and aids the department in the collection, monitoring, and processing of direct taxes through the use of technology.
What services does TIN provide?
A few prominent services provided by Tax Information Network are mentioned below:
e-TCS/ E-TDS
Both corporate and non-corporate entities are required to deduct tax at the source before making payments and submitting them to the government. After submitting the tax, the entity responsible for deducting the tax must provide a TDS return which includes all relevant details.
To enhance the automation and efficiency of TDS return processing, the income tax department introduced the "Electronic Filing of Returns of Tax Deducted at Source Scheme 2003".
Online Tax Accounting System OR OLTAS
OLTAS is used by the Income Tax department to keep track of taxes paid through banks. Following challans are available for tax payments:
- ITNS 280 for corporate tax and income tax
- ITNS 281 for depositing tax collected at source and tax deducted at source for both non-corporations and corporations.
- ITNS 285 for equalization levy payment
- ITNS 286 for payouts under the Income Declaration Scheme, 2016
- ITNS 287 for payouts under the Pradhan Mantri Garib Kalyan Yojana
Equalization Tax (Levy):
An equalization levy was established in 2016 as a way to tax digital transactions and the income accruing in India from foreign companies. The service recipient must withhold the equalization levy amount before making any payments. The following are the two conditions that must be met:
- Service provider must be non-resident
- A single service provider receives an annual payment of more than INR 1,00,000
Presently, this tax is applicable on the following:
- Advertising online
- Any provision for advertising online
TDS on property sale
TDS is required to be withheld by the purchaser on payments for the sale of immovable property when the sale consideration exceeds Rs. 50,00,000, as per Section 194IA of the Income Tax Act. This applies at a rate of 1% and has been in effect since June 1st, 2013.
The Tax Information Network has made Form 26QB available for paying taxes on the sale of a property. Following things to be kept in mind while paying:
- Tax deduction @1%
- Check the seller's PAN
- Include PANs of both the buyer and the seller
- No corrective measures are available to fix mistakes related to PAN.
Also Read: To know more about investment
Applying for a Permanent Account Number (PAN)
Taxpayers can apply for PAN through a TIN Facilitation Centre. They may choose from two types of PAN applications:
Applicants who have never applied for a Permanent Account Number (PAN) can do so through Form 49A (for residing and non-residing Indians) and 49AA (for foreign citizens).
The following documents are required along with the application:
Any one of the following (for identity proof)
- Copy of Aadhar card or Driving license or Passport or Ration card
Any one of the following (for address proof)
- Copy of Aadhar card or Driving license or Passport or Post office passbook with applicant's address or latest copy (less than 3 months old) of electricity/ water/ broadband bill
Also Read: To know more about markets
How can an individual track status of an application for PAN?
An individual can check the status of the PAN application either by calling the call centre (020 – 2721 8080) or by visiting the NSDL website.
Also Read: To know more about taxes
This article provided an in-depth understanding of the importance of TIN, and PAN, as well as how to apply for them. By understanding the role of each of these components in the taxation system, taxpayers can ensure that they are compliant with their tax obligations and enjoy the many benefits of a secure and reliable taxation system.
