Income Tax/PAN Registration India –
The foremost requirement under Income Tax, 1963 is for every taxpayer to get a PAN (Permanent Account Number). Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department, which is required to be mandatorily quoted on all return of income, all correspondence with any income tax authority and on challans for any payments due to Income Tax Department.
It is also compulsory to quote PAN in all documents pertaining to financial transactions notified from time-to-time by the CBDT(Central Board of Direct Taxes). Like sale and purchase of immovable property or motor vehicle or payments in cash, or in connection with travel to any foreign country, or for obtaining a telephone or cellular telephone connection, or 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.
Further, under various other provisions charitable organizations can get themselves registered for different kinds of exemptions:
- Sec 12AA of Income Tax Act 1963 – Charitable Institutions or Trusts can register themselves with Commissioner of Income Tax.
- Sec 35AC of Income Tax Act 1963 – organizations having income from business or profession can get 100 per cent deduction.
- Section 80G of Income Tax Act 1963 – Individuals / Organizations donating to NGOs registered under 80G can get appropriate exemptions.