We thought the following information on various tax issues would be useful to you. Personal circumstances always vary, so please ensure you contact us for specific advice.
Permanent Account Number - PAN:
The Permanent Account Number (PAN) is a number used by the Income Tax Department to identify assessees. PAN is a 10-digit alphanumeric number that is printed on a laminated card known as a PAN card, along with other details such as the:
Name of applicant
Date of birth
The PAN number replaces the General Index Registrar (GIR) Number which is given to the assessee by an assessing officer and includes the officer's details.
Under section 139A of the 1961 Income Tax Act, the PAN number is required for individuals:
Whose total annual income exceeds the amount that is not chargeable under the income tax act
Whose income through business or another profession exceeds Rs. 5 lakhs
Who is filing an income tax return
PAN is required in the following situations:
Filing an income tax return
Any correspondence with the income tax department
Submitting challans for payment of any tax to the department
Verifying the identity of an assessee in the income tax department
After 1865 additional acts were implemented, the most significant being the Income Tax Act of 1961. According to this act, any person whose salary from any source of income exceeds the maximum limit of unchargeable amount is liable for Income Tax. There is also a provision of deduction and exemptions in Income Tax which depends on the:
Type of assessee
Source of income
Investment in saving schemes
Refunds: Tax authorities have now made it easier for Indian tax payers to determine their refund status. You can simply visit the NSDL-TIN website www.tin-nsdl.com and click Status of Tax Refunds to see whether a refund is due to you.
NOTE: To track your refund status you will have to enter PAN (Permanent Account Number) and Assessment Year information.
Capital assets: Under section 2(14) of the 1961 Income Tax Act, a Capital Asset is defined as property of any kind held by an assessee, including property held for their business or profession. A capital asset includes all property types as well as all rights in property. It is also defined as gains on a transfer of assets where there in no cost of acquisition such as: Goodwill of business generated by the assests
Stage carriage permits
The right to manufacture
Processing and production of any article