Want PAN card? Top 5 mistakes to avoid while applying for this critically important document
PAN card or Permanent Account Number is a very important document provided by Income-Tax department to every taxpayer.
PAN card or Permanent Account Number is a very important document provided by Income-Tax department to every taxpayer. This is provided to an individual to use as a universal identification key to track his/her financial transactions that might have a taxable component to prevent tax evasion. PAN also serves as identity proof. Since the card has multi-faceted utility, and if you want to apply for it, you need to take certain precautions while filling up your details in the application.
As stated, PAN also serves the purpose of identity proof, you should fill application with great care to avoid mistakes because certain errors tend to occur despite taking precautions. There are some common mistakes that can be avoided while going ahead with formalities.
1. Avoid incorrect signature: As we know that signature is very crucial part of your PAN application form, you should be careful for speedy acceptance. You should know that there are two places where you need to put your signature.
You should sign across the photo on the left, as the photo is affixed on right side. It should not be larger than the space provided, so that you have ample amount of space for signature. Because signing anywhere outside these two allotted places can result in an error.
2. Since PAN card application form needs two passport sized photos to be affixed, most of us tend to attach scanned copies of their photos, and this leads to mistakes. Generally, scanned photo copies are not clear and may make your identification difficult, therefore, you are advised to attach merely original photos in the application form.
3. Further, applicants must ensure that their signature is put using black ink. This forms part of instructions, but most of us fail to adhere to the norms and sign the form with different colors. Therefore, you should ensure that you use black ink while filling the form to avoid any delay in receiving your PAN card.
4. You should also avoid using initials because Income Tax department does not accept initials of the names. Therefore, you must mention your full name in the PAN application.
5. This point is very important to remember to avoid PAN penalties. You should know that you can not hold more than one PAN, because a penalty of Rs 10,000 can be imposed under section 272B of the Income-tax Act, 1961 for committing this wrong.
If you have been allotted more than one PAN, you should immediately surrender the additional PAN card(s) to Assessing Officer with your details to avoid penalty.