Why to update your Pan details in Bank records..

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 documents, it would be very convenient to locate the assessing officer holding jurisdiction over the person concerned. 

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.

Benefits of updating Pan Number

If your PAN details are updated in your bank records you can get your Form 16A (TDS certificate) from the NSDL website.

You will get the benefits of Double Taxation Avoidance Agreement (DTAA) to avoid excess tax.

If Pan details are not updated 

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.

Form 15G/H shall not be treated as valid unless a valid PAN is mentioned and the benefit of exemption from TDS will not be granted in the absence of a valid PAN.

 

How to update my PAN number?

Step 1) Submit a written request specifying your updated PAN number
Step 2) Give a self-attested photocopy of your PAN card. (carry originals for verification)

 PAN details will be updated in bank records only after verification of your name, date of birth and PAN details on NSDL site.