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The Reserve Bank of India has given permission to financially sound and well managed urban co-operative banks (UCBs) to act as PAN (permanent account number) service agents or PSAs.
UCBs can become PSAs by entering into a tie-up with UTI Infrastructure and Technology Services Ltd (UTIITSL), with prior approval from the RBI.
PAN is a 10-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department.
It is mandatory to quote PAN on tax returns, all documents pertaining to financial transactions notified from time to time by the Central Board of Direct Taxes and all correspondence with any income tax authority.
The move to allow UCBs to act as PSAs is probably to ensure that more individuals have PAN as it will enable the I-T Department to link all transactions of the individuals. There are about 1,600 UCBs in the country.
UCBs can become PSAs by entering into a tie-up with UTI Infrastructure and Technology Services Ltd (UTIITSL), with prior approval from the RBI.
PAN is a 10-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department.
It is mandatory to quote PAN on tax returns, all documents pertaining to financial transactions notified from time to time by the Central Board of Direct Taxes and all correspondence with any income tax authority.
The move to allow UCBs to act as PSAs is probably to ensure that more individuals have PAN as it will enable the I-T Department to link all transactions of the individuals. There are about 1,600 UCBs in the country.
Due care advised
The RBI said UCBs undertaking PSA activity should, however, exercise due care as violations, such as delay in forwarding the applications to UTIITSL processing centres, incomplete applications, discrepancy in enclosed documentary proof/applications, and so on, may result in UTIITSL levying a penalty.
Transactions where PAN is required include sale and purchase of immovable property, motor vehicle, or payments in cash of amounts exceeding Rs 25,000 to hotels and restaurants or in connection with travel to any foreign country.
It is also mandatory to mention PAN for obtaining a telephone or cellular telephone connection.
Likewise, PAN has to be mentioned for making a time deposit exceeding Rs 50,000 with a bank or post office or depositing cash of Rs 50,000 or more in a bank.
Source: thehindubusinessline
Transactions where PAN is required include sale and purchase of immovable property, motor vehicle, or payments in cash of amounts exceeding Rs 25,000 to hotels and restaurants or in connection with travel to any foreign country.
It is also mandatory to mention PAN for obtaining a telephone or cellular telephone connection.
Likewise, PAN has to be mentioned for making a time deposit exceeding Rs 50,000 with a bank or post office or depositing cash of Rs 50,000 or more in a bank.
Source: thehindubusinessline
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