PAN mandatory for all income earners from mid-July

Published On: July 2, 2019 07:05 AM NPT By: Muna Sunuwar  | @TheMunaSun

KATHMANDU, July 1: Suman Kumar Gupta, 23, recently applied for Permanent Account Number (PAN) at a taxpayer service office of Inland Revenue Department in Kathmandu. “I had to apply for PAN as my employer asked me to get PAN before joining them,” Gupta, who has recently been hired by a commercial bank, told Republica.

Taxpayer service offices across the country have witnessed a rise in the number of applications for PAN in recent days. This is because the government has made PAN mandatory for all salaried workers from the upcoming Fiscal Year 2019/20 which begins from mid-July.

Starting mid-July, all employers will have to record tax deducted at source (TDS) in the respective accounts of their staffers. For that, all their employees must have PAN.

The IRD has claimed that it has simplified the process for applying PAN. “The location of office determines the time required to allot PAN. It may take some time in offices located in prime locations where the number of service seekers is high,” Durgadatta Bhandari, assistant information officer with the IRD told Republica.

Service seekers also say that the process is simple and hassle-free. “If you have all the required documents, PAN will be allotted in no time,” Sunita Nuchhe Pradhan, 29, who works for a dealer of home appliances distributor, said.

PAN will be mandatory for employees or workers earning any amount in the form of salary, wages, leave pay, commission, prizes, bonuses and other facilities from any organizations from the new fiscal year. The government does not validate any company’s payment of salaries and wages to its employees or workers who do not have PAN. Because of the new provision, employers have started directing their staffers to get PAN. 

Shesh Dahal, a chartered accountant and tax consultant, said that the government has tried to become inclusive by making PAN mandatory for the whole income making population. “Let’s see how the government and the people comply with the rule,” he said, adding: “It will help the government to regulate taxation system.”

Dahal said that if an individual is associated with two companies with earning exceeding Rs 400,000, s/he should submit their income details to IRD. “They should report to the Inland Revenue Office at the end of the fiscal year and pay the actual tax s/he person is accountable of,” he added. 
Similarly, Bhandari of IRD said since it is a self-declaration system, the government will take appropriate action if anyone is found involved in tax evasion. 

All income earners should pay income tax for higher than Rs 400,000 for individuals and Rs 450,000 for married.

How to apply for PAN

Application for PAN can be lodged online. For that, applicants should visit the website of Inland Revenue Department (IRD) and select Taxpayer Portal. After clicking ‘Application for Registration’, one must fill up the details as requested in the form. After entering all the information, and selecting the tax office near to them, the applicant will have to press ‘submit’ button following which they will get a submission number which serves as the identification number of applicants. The applicant will get PAN card after producing the submission number at the tax office one day after submitting their application.

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