PAN or Permanent Account Number is an alphanumeric number consisting of 10 digits is provided by the Income Tax Department of India in the form of a laminated card. This card is issued under Section 139A of the Income Tax Act of India. This card serves as an important proof of identification. Although this card cannot be used as a proof of address or citizenship but is essential for a large number of financial purposes such as receiving a taxable salary, opening a new bank account, purchase or sale of assets under a specified limit.
PAN card serves a primary need to provide universal identification to financial transactions, avoid tax evasion, to track monetary purchases and spending especially of those who have a high net worth. The PAN number is unique to each individual and is valid for their entire lifetime.
However, despite the presence of a PAN card there have been numerous instances of tax evasion, duplication of PAN cards, black money cases and so on. In order to completely curb this menace, the Government of India has come up with an additional security measure known as ITBA-PAN.
What is ITBA PAN
ITBA-PAN stands for Income Tax Business Application-Permanent Account Number and is a software to analyse and monitor transactions throughout the country and to curb black money trail. This software will allow taxmen to check, in a chronological order, the entire financial summary or transactions of an individual or company, wherever the PAN number has been used, throughout the country. This tool will also enable the Income Tax Department and its organizations such as UTIITSL and NSDL to provide new PAN number with in 48 hours instead of a fortnight as is being taken currently. In addition to this, the government is also making PAN number mandatory for transactions that exceed a certain amount.
In order to track transactions across the country in a better manner, they have also closed down the AIS or the Assessee Information System which was being used to hold the entire database of PAN numbers. The Income Tax Department has also migrated PAN numbers and database from the old database to the new one.
Benefits of ITBA-PAN
There are numerous benefits of ITBA-PAN, as mentioned below.
- Through this database, the Income Tax Department can view and access various information and events such as liquidation, death, de-merger, acquisition, death, merger, amalgamation of PAN among others in case any investigation is being carried out against that particular individual.
- Fake or duplicate PAN numbers can be identified through which tax evasion and black money operations can be nipped at the bud itself.
- In case a PAN number holder wishes to deactivate or delete his/her PAN number, the ITBA-PAN software can facilitate this and an electronic intimation letter that has been digitally signed will be sent.
- Individuals can also activate a PAN number that has been wrongly deactivated or deleted through this software.
- In case individuals have been relocated or transferred from one location to another, this software will also them to transfer or change their PAN number easily.
Frequently Asked Questions (FAQ) on ITBA PAN:
- With the ITBA-PAN software, how long will it take for a new PAN number to be issued?
Through the new software, individuals can procure a PAN card within 48 hours.
- What does ITBA-PAN stand for?
ITBA-PAN stands for Income Tax Business Application-Permanent Account Number.
- What are advantages of ITBA-PAN for citizens?
Through the ITBA-PAN software tool, individuals can easily activate or deactivate their PAN number, transfer it or even procure a new number within a short span of time.