INDEX

1.Use of PAN & its Benefits &

Applications.
INTRODUCTION
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, to
any "person" who applies for it or to whom the
department allots the number without an
application.
PAN enables the department to link all transactions
of the "person" with the department. These
transactions include tax payments, TDS/TCS credits,
returns of income, specified transactions,
correspondence, and so on. PAN, thus, acts as an
identifier for the "person" with the tax department.
PAN was introduced to facilitates linking of various
documents, including payment of taxes,
assessment, tax demand, tax arrears etc. relating to
an assessee, to facilitate easy retrieval of
information and to facilitate matching of
information relating to investment, raising of loans
and other business activities of taxpayers collected
through various sources, both internal as well as
external, for detecting and combating tax evasion
and widening of tax base.

A typical PAN is AFZPK7190K.

First three characters i.e. "AFZ" in the above PAN
are alphabetic series running from
AAA to ZZZ
Fourth character of PAN i.e. "P" in the above PAN
represents the status of the PAN holder. "P" stands
for Individual, "F" stands for Firm, "C" stands for
Company, "H" stands for HUF, "A" stands for
AOP, "T" stands for TRUST etc.
Fifth character i.e. "K" in the above PAN represents
first character of the PAN holder's last
name/surname.
Next four characters i.e. "7190" in the above PAN
are sequential number running from 0001 to 9999.
Last character i.e. "K" in the above PAN is an
alphabetic check digit.
WHY IS IT NECESSARY TO HAVE PAN?
It is mandatory to quote PAN on return of income,
all correspondence with any income tax authority.
From 1 January 2005 it has become mandatory to
quote PAN on challans for any payments due to
Income Tax Department.
It is also compulsory to quote PAN in all documents
pertaining to the following financial transactions :-
   1)  Sale or purchase of a motor vehicle or vehicle
other than two wheeled vehicles.
   2)  Opening an account [other than a time-deposit
referred at point No. 12 and a Basic Savings Bank
 Deposit Account] with a banking company or a
co-operative bank
   3)  Making an application for issue of a credit or
debit card.
   4)  Opening of a demat account with a depository,
participant, custodian of securities or any other
person with SEBI
   5)  Payment in cash of an amount exceeding Rs.
50,000 to a hotel or restaurant against bill at any
one time.
   6)  Payment in cash of an amount exceeding Rs.
50,000 in connection with travel to any foreign
country or payment for purchase of any foreign
currency at any one time.
   7)  Payment of an amount exceeding Rs. 50,000 to
a Mutual Fund for purchase of its units
   8)  Payment of an amount exceeding Rs. 50,000 to
a company or an institution for acquiring
debentures or bonds issued by it.
   9)  Payment of an amount exceeding Rs. 50,000 to
the Reserve Bank of India for acquiring bonds
issued by it.
FORMS FOR PAN:-
Who Can Apply For PAN CARD:-
Indian citizens/companies/entities need to apply for
PAN card using Form 49A. Some of the basic and
important eligibility criteria and supporting
documents required by Indian
citizens/companies/entities who want to apply for
PAN card is mentioned below:
 Individual:Applicant should be an Indian citizen
with valid identity proof, address proof and
date of birth proof.
 Hindu Undivided Families: An HUF is a separate
entity. Hence, the PAN card can be applied in
HUF’s name to enter into financial transactions.
Head (Karta) of the family can apply for PAN
card on behalf of family by furnishing his proof
of identity, proof of address and DOB proof
along with providing fathers’ name and
addresses of all the co-parceners of HUF.
Affidavit needs to be made by the Karta of HUF
mentioning all the details.
 Minors: Minors can also apply for PAN card.
PAN card is a mandatory requirement in case of
 making them nominee for a property and also
to make investments in their name. Parents of
minors can sign the form 49A on behalf of
them. Proofs of parents are to be submitted
along with date of birth proof of child while
submitting the form. Aadhaar number of minor
needs to be quoted in the form.
 Mentally Retarded Individuals:If needed,
mentally retarded individuals can also obtain a
PAN. Application has to be submitted by their
representatives.
 Partnership Firm:Copy of Certificate of
Registration issued by Registrar of Firms or
Copy of Partnership Deed needs to be
submitted to obtain a PAN card.
 Limited Liability Partnership:Copy of Certificate
of Registration issued by the Registrar of LLPs
needs to be submitted to get a PAN card.
 Trusts: Trusts are eligible to apply for PAN card
by furnishing trust deed and certificate of
Registration number issued by Charity
Commissioner.
 Companies:PAN card for companies can be
applied online. Companies need to register with
 the state Registrar of Companies before
applying for PAN card as registration number is
mandatory. Copy of Certificate of Registration
issued by the Registrar of Companies need to be
furnished along with the form.
 Local Authorities: Local authorities can also
place an application for obtaining PAN by
submitting a copy of the agreement.
 Association of Persons:Registered associations
can apply for PAN card by submitting a copy of
their registration certificate.
 Artificial Judicial Person:They are eligible to
apply for PAN card by submitting the
registration certificate from government
establishing identity and address of such
person.

Conclusion:
2. Comprehensive Data Regarding all the heads of
Income.
 Introduction:
According to the Income Tax Act, a taxpayer’s
earnings are divided into 5 Heads Of Income. At the
end of each financial year, you must correctly
classify your earnings under these heads
ofIncome for accurate Tax calculation. 
It is essential for you to know which of your
earnings falls under what category. To get a clear
understanding of the income heads, keep reading.

The 5 heads of Income are:

1.Income From Salary.
2.Income From House Property.
3.Income From Profits & Gains From Business OR
Profession.
4.Income From Capital Gains.
5.Income From Other Sources.

1.Income From Salary:

Employment provides a regular compensation more
commonly called ‘income from salary’. Salary is one
of the most basic motivations behind the qualified
workforce and employers. However, it is not an
informal understanding. In fact, your salary income
is a part of a legitimate contract between you as an
employee and your employer.
Salary means the money received by a person,
referred to as an “employee” from an organization,
referred to as an “employer” for offering specific
services in connection with employment. What are
the components, such as allowances, of this income
received through salary and how are they
calculated? You can find all these components listed
in your salary slip.
For most people, income means their total earnings
in the form of wages and salaries, the return on
their investments, pension distributions, and other
receipts. For businesses, income means the
revenues from selling services, products, and any
interest and dividends received with respect to
their cash accounts and reserves related to the
business.
SUM:-

2. Income From House Property:

Income from House Property in India: ‘Income from
house property’ refers to the revenue generated by
a house property, either as a rental income or due
to its sale.

‘Income from house property’ refers to any income

derived from home property, whether in the form
of rental income or from its sale. The Income Tax
Act treats any property, such as a house, a building,
an office, or a warehouse, as ‘house property.’ The
Income from House Property is one of the five types
of income included when determining an assessor’s
gross total income (GTI) for the year. However,
several deductions can be taken before the income
from a rental property is taxed. Are you wondering
if there are several sorts of house property to
consider? Keep in mind that a residence might be
self-occupied, rented, or inherited; depending on
the circumstances, the taxation will differ.

SUM:-
3. Income From Profit & Gains From Business OR
Profession.
Covered under section 28 to 44D of Income Tax
Act,1961
Profit and gains of Business or profession (also
known as PGBP) is third head in computation of
income apart from four incomes, namely, income
from salary, income from house property , income
from capital gains and income from other sources.
This is one of the Major head compassing for
computing professional tax registration.
Profit is the summation of total income less total
expenses. Gain is the proceeds received from the
sale of fixed or financial assets. It is generated
outside of business operations. Take the selling
price and subtract the initial purchase price. The
result is the gain or loss. Take the gain or loss from
the investment and divide it by the original amount
or purchase price of the investment. Finally,
multiply the result by 100 to arrive at the
percentage change in the investment.
Income earned through your profession or business
is charged under the head ‘profits and gains of
business or profession. ‘ The income chargeable to
tax is the difference between the credits received
on running the business and expenses incurred.
4. Income From Capital Gains:
A capital gain, therefore, is the profit realized
when an investment is sold for a higher price than
the original purchase price. Investment income is
profit that comes from interest payments,
dividends, capital gains collected as a result of the
sale of a security or other assets, and other profits
made through an investment vehicle of any kind.
The term capital gain refers to the increase in the
value of a capital asset when it is sold. Put simply,
a capital gain occurs when you sell an asset for
more than what you originally paid for it.Almost
any type of asset you own is a capital asset. This
can include a type of investment (like a stock,
bond, or real estate) or something purchased for
personal use (like furniture or a boat).
Capital gains are realized when you sell an asset
by subtracting the original purchase price from
the sale price. The Internal Revenue Service (IRS)
 taxes individuals on capital gains in certain
circumstances.
5.Income From Other Sources:-
Income from all other sources means gross income
from whatever source derived (except as excluded
in subsection (i) of this section) including, but not
limited to: pensions, annuities, dividends, interest
(if more than $10.00 a month), rental income,
boarders, estate or trust incomes, royalties, social
security or supplemental security income, veterans’
benefits, unemployment compensation, workers’
compensation, alimony, child support, and cash
assistance from federal, state, and municipally
funded assistance programs that are not otherwise
expressly excluded as income by federal or state
laws for purposes of these regulations.
 4. Various Types of TDS & it’s
Subsections.
TDS is basically a part of income tax. It has to be
deducted by a person for certain payments made by
them. In this article, we will discuss in detail the TDS
provisions under the Income Tax Act.
TDS or Tax Deducted at Source is income tax
reduced from the money paid at the time of making
specified payments such as rent, commission,
professional fees, salary, interest etc. by the
persons making such payments. Usually, the person
receiving income is liable to pay income tax. But the
government with the help of Tax Deducted at
Source provisions makes sure that income tax is
deducted in advance from the payments being
made by you. The recipient of income receives the
net amount (after reducing TDS). The recipient will
add the gross amount to his income and the
amount of TDS is adjusted against his final tax
liability. The recipient takes credit for the amount
already deducted and paid on his behalf.  
Budget 2023 updates –
 Section 194BA – Introduction of TDS on income
from online gaming
 Section 196A – Starting April 1st, 2023, non-
residents earning income from mutual funds in
India can provide a Tax Residency Certificate to
avail the benefit of TDS as per rate given in tax
treaty, instead of 20%.
 Section 192A – TDS rate reduced to 20% from
maximum marginal rate on PF withdrawal for
employees who do not have PAN
 Section 193 – No exemption from TDS on
interest from listed debentures. Therefore, tax
has to be deducted on interest on such
specified securities.
 Section 194N – TDS threshold has been
increased on cash withdrawal by by co-
operative societies. Starting April 1st, 2023, tax
will be deducted on cash withdrawals by co-
operative societies if the amount exceeds Rs 3
crore, instead of the previous limit of Rs 1 crore.