Personal PAN CARD
What is a PAN card?
PAN is a computerized method through which, all tax-related data for a person/company is registered against a single PAN number. This acts as the primary key for the storage of data and is uniquely distributed across the country. It is an identification record for any person or any taxpayer. The laws regarding PAN are stated in Article no. 78 of the Income Tax Law, 2058. This number is proposed for the person/business to pay tax and for the government to keep a record of tax paid by a person or company. It is a 9-digit unique number automatically generated by a computer.
PAN is a fixed number and doesn't need to be renewed once it is issued. Nevertheless, if in case of any change in data e.g. address of the person you need to provide the updated data to the related revenue office within 15 days.
Types of PAN Card
PAN Card is of two types
Why is PAN important?
PAN is a critical document for many purposes as it is your identity as a taxpayer of the country.
Once you have a PAN number, you can ask your employer to link your tax to your PAN.
Even if you are a freelancer, you can provide the PAN number to your clients and add 15% TDS which they will pay on your behalf.
Having a PAN card will let you check the TAX you have paid from anywhere by logging in to the IRD website (https://it.ird.gov.np/taxpayer/app.html). It makes it convenient for you to get a tax clearance certificate as well.
Personal PAN CARD
The government has made it compulsory for all salaried workers, both government and a private firm to get Permanent Account Number (PAN). Taxpayer service departments over the country have recognized a rise in the number of applications for PAN in recent dates. From the future Commercial Year 2019/20 which starts from mid-July, all salaried workers must have a personal PAN number.
The government’s move to make PAN compulsory for salary earners primarily intends to track revenue leakages. By making PAN compulsory, the government will be able to track the actual amount of tax that a person has been paying out of his or her earning. Administrators at the Inland Revenue Department (IRD) claim that making PAN compulsory for all salary earners is a part of increasing the tax authority and guiding revenue leakages.
Service seekers also say the method is simple and hassle-free. If you have all the required documents, PAN will be distributed in no time. PAN will be compulsory for employees or workers earning any amount in the form of salary, leave pay, commission, prizes, bonuses and other facilities from any organization from the new commercial year. The government does not approve any company’s payment of salaries to employees or workers who do not possess PAN Number/PAN card because of the new provision.
According to the government, almost 900,000 individuals have already taken PAN.