Permanent Account Number is a number by which the Assessing Officer can identify any person. PAN consists of ten alphanumeric character and is issued in the form of a laminated card.
If PAN is quoted in all challans, the credit for payment of taxes can be quickly granted to the taxpayer.
If PAN is quoted in all specified transactions, the Department can excercise greater control over unregulated and undisclosed transactions.
You will get the benefits of Double Taxation Avoidance Agreement (DTAA) to avoid excess tax.
As per new section 206AA of the Income Tax Act, 1956 effective from April 1, 2010, residents, whose tax is required to be deducted, need to submit their valid PAN; else tax will be deducted at the prevailing rate or 20%, whichever is higher.
In the absence of a valid PAN of a non-resident customer, benefit of DTAA for lower deduction of tax will not be granted and tax would be deducted under section 195 at higher of a) the rate specified in the relevant provisions of this Act; or b) rate in force; or c) the rate of 20%.
Where the PAN given is invalid, it shall be deemed that the PAN has not been given and tax shall be deducted at the prevailing rate or 20%, whichever is higher.
Step 2) Give a self-attested photocopy of your PAN card. (carry originals for verification)