What is a Personal Account Number (PAN) ? How to Apply and Dissolve Personal Account Number (PAN) in Nepal

WHAT EXACTLY IS PAN?

According to Section 78 of the Income Tax Act of 2058 (2002), the Inland Revenue Department is required by law to issue Permanent Account Numbers (PANs). A Permanent Account Number (PAN) is a number issued by the Inland Revenue Department in the form of a laminated card to any “person” who applies for it. The department can use PAN to link all of the “person’s” transactions with the department. These transactions include tax payments, TDS/TCS credits, income returns, specified transactions, correspondence, and so on. As a result, the PAN serves as the individual’s unique identifier with the tax department.

PAN was created to facilitate the integration of numerous documents relating to an assessee, such as tax payments, evaluation, tax demand, tax nonpayment, and so on, in order to enable easy data recovery and matching of information relating to taxpayers’ investment, loan raising, and other business activities collected from various sources, both internal and external, for detecting and combating tax evasion and broadening the tax base.

The Inland Revenue Department has the authority to issue an order to obtain a PAN Number.

We believe that if we don’t get a PAN number, we won’t have to pay taxes. Even if we do not have a PAN number, we must pay taxes. The Inland Revenue Department may issue an order requiring an individual to include their PAN number in their income details, statements, or any other relevant papers for the purposes of this Act, according to Section 78 (2) of the Income Tax Act, 2058 (2002).

The Inland Revenue Department can order the set of circumstances to obtain a PAN number.

According to Section 78(3) of the Tax Act of 2058, the department can create situations in which an individual is required to show or state their PAN number. Before beginning any transactions, an individual must obtain a PAN Number. Individuals who conduct transactions must submit detailed registration information to the department via the biometrics system within the timeframe specified by the department and in accordance with its instructions.

How do I obtain a personal account number (PAN) in Nepal?

The Nepali government has mandated that all salaried employees of both private and public companies apply for and obtain a PAN (permanent account number). We’d like to remind anyone who is still unsure about the process, as well as where and how to apply for a PAN, that you’re only a few steps away from registering for and receiving your PAN. To obtain your PAN in Nepal, follow these steps:

Step-1 Go to www.ird.gov.np to learn more.

First and foremost, please visit the Inland Revenue Department at www.ird.gov.np. To begin, go to the Inland Revenue Department’s (IRD) website and select the ‘Services’ tab, then the ‘Tax-Payer Portal’ link.

Step 2: Scroll down the left side of the page.

Then, on the left, in the ‘Online E-services’ section, select the ‘Registration (PAN, VAT, EXCISE)’ tab. While doing so, click on the ‘+’ sign in the same tab to expand the vertical menu.

Step 3: Navigate to the Application for Registration’ tab.

Now, locate and select the ‘Application for Registration’ tab.

Finally, the e-form for the PAN application will appear on the screen. Fill out the form completely in Nepali (Nepali Unicode) and upload your photo and any required documents. Fill in the provided username, password, contact information, and so on. Choose Personal PAN. Select IRO/LTO offices that are closer and more convenient to you for verification.

After submitting the application form, print it and take it to the Inland Revenue Office (IRO) of your choice for verification. Following that, a registration form will appear on the main screen. Fill out the required information, and in the ‘Verifying Offices’ section, select the IRD office closest to you.

Now, click the ‘OK’ button, and you will be given a submission number. Make a note of it.

After you’ve noted your submission number, click the ‘Continue’ button.

When you have finished filling out the form, click the ‘Save’ button. If you need to change or edit any of the information or details entered in the form, you can log in with your registration information again. You will need your username, password, and submission number for this.

Then, click the ‘Submit’ button, and don’t forget to click the ‘Print’ button as well.

Step 4: Go to the IRD office.

Visit the IRD office in your area with a copy of the applicant’s citizenship certificate, two passport-size photos, and any authentic identification document or citizenship certificate in the case of foreigners once you have a printed copy of the submitted PAN application form.

In what circumstances can the PAN NUMBER BE DISSOLVED?

The PAN number can be dissolved under the following conditions, according to Section 78 (a) of the Income Tax Act of 2058 (2002|).

A. In the event that the transactions are halted.

B.  In the case of the entity, if such entity is shut down, transferred, or has no identity.

C. In the case of private ownership, if the owner dies.

D. If it is registered mistakenly.

How to Get Rid of a Personal Account Number:

Procedures for Dissolving a Personal Account Number:

1. Fill out an Application

According to Section 78(a)(1) of the Act, an individual or entity that wishes to dissolve the PAN that it has obtained must file an application with the department within 30 days of the time period created for dissolving the PAN.

Income and tax information up to the specified period must be submitted when submitting an application. If the department finds that the PAN should be dissolved, it must notify the applicant within 30 days of the application’s submission.

Conclusion:

PAN Cards are essential for taxpayers because they are required for all financial transactions and are used to track your money’s inflow and outflow. It is required when filing taxes, receiving tax refunds, and communicating with the Income Tax Department. Corporate Lawyer Nepal has been involved in a number of tax matters

For more information, Please connect with us at +977-9745374671 or by email: info@corporatelawyernepal.com