21 Feb 2014

New PAN Application Procedures

With a view to reduce fake PAN applications, The Central Board of Direct Taxes (CBDT) has issued new guidelines for PAN allotment. The new rules are harder and claim to cut down the numbers of forged PAN applications.
The rules laid down by CBDT are as follows:
1.    The PAN application fee has been increased to Rs. 105/-(inclusive of taxes).
2.  Form 03.02.2014 onwards, every PAN application has to submit self attested copies of Proof of Identify (POI), Proof of Address (POA) and Date of Birth (DOB) documents. The applicants are also required to produce original documents of such POI/POA/DOB documents for verification at the counter of PAN facilitation centers.
3.    The copies of Proof of Identity (POI), Proof of Address (POA) and Date of Birth (DOB) documents attached with PAN application form, will be verified vis a vis their original documents at the time of submission of PAN application at PAN facilitation Centres
4.   Original documents shall not be retained by the PAN Facilitation Centres and will be returned back to the applicant after verification.


New PAN Procedures
CBDT Says that the new guidelines will be effective in reducing the FAKE applications but from an applicant appoint of view these can be called as stringent. A new applicant generally hires a Chartered Accountant or other professional to apply for PAN Card. It means the applicant will have to hand over his ORIGINAL documents to the professional doing the application process. It may happen that these documents may not remain safe with the professional. So in this regard the rules are really hard.
It has been guided by CBDT that ORIGINAL documents will be produced in front of PAN facilitation centres for verification. CBDT will have to closely watch if PAN facilitation centres are doing their jobs properly and honestly.
Only the time will tell whether the new framework for PAN application procedures has a positive impact or not. 



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