This article will guide you through all the information regarding PAN in Nepal.
What is PAN?
The Permanent Account Number, commonly known as PAN in Nepal, acts as a unique ID card for taxpayers in Nepal. Just as students carry school IDs and drivers hold licenses, taxpayers possess PAN cards.
Nepal’s government introduced this system to monitor the earnings and expenditures of both private company employees and government officials more effectively.
With PAN, the government ensures proper money flow and verifies that everyone pays their taxes correctly. It is an essential tool that streamlines financial transparency between the government and its citizens. This article offers a clear guide to help you understand PAN in Nepal.
PAN in Nepal
PAN acts as a unique code or number that the Inland Revenue Department (IRD) assigns to taxpayers in Nepal. This system helps the IRD stay organized. The foundation of this idea comes from Section 78 of the Income Tax Act 2058 (2002).
Using PAN, the government efficiently tracks how much money individuals earn and calculates the correct amount of tax they owe. This method ensures that everyone contributes the right amount, preventing overpayment or underpayment.
Process of Registration of PAN in Nepal
- Go to the Website of the Inland Revenue Department: www.ird.gov.np.
- Look for and click on the “Tax-Payer Portal” link.
- Dive into ‘Online E-services’ and then select ‘Registration (PAN, VAT, EXCISE)’.
- A menu pops up; from there, choose ‘Application for Registration’.
- Time to fill up the form! Make sure to pick the IRD office closest to you.
- After clicking ‘OK’, you’ll get a submission number. Don’t lose it; jot it down.
- Go ahead and fill up your personal details.
- Double-check everything and then hit the ‘Save’ button.
- The last online step – print out that application form.
- With your printed form in hand, go to your chosen IRD office.
- Remember to bring other important stuff like a copy of your citizenship, some passport-sized photos, and any ID you think they might ask for.
Document Required for PAN in Nepal
- A copy of your citizenship
- Two passport-size photos
- Any certificates showing your skills or profession (if you have them)
- The certificate that proves your business or company is officially registered
- Photos of all the people involved in the business if it’s a partnership
- Copies of everyone’s citizenship
- A map showing exactly where your business is located
- If you’re renting a space for your business, make sure to have a copy of your lease agreement.
Cost of PAN ID in Nepal
Getting a PAN card in Nepal is completely free. This move by the government ensures that every taxpayer, regardless of their financial status, can easily access this essential identifier.
How to Cancel PAN ID?
- If there are no more financial activities (like buying or selling things) related to the PAN.
- If a business linked to the PAN shuts down, changes hands, or loses its main purpose.
- If the owner of the PAN passes away.
- If someone made a mistake when registering the PAN in the first place.
If you want to cancel a PAN, you need to let the department know within 30 days of when you’re allowed to end it.
Do I Need a PAN ID in Nepal?
It is highly suggested that you have a PAN ID in Nepal. These are the benefits of having a PAN ID:
- Acts like a special ID just for money matters, helping you keep track of all you earn and spend.
- Makes getting your tax refunds faster and smoother.
- It’s the official ID the tax department checks to confirm you’re genuine.
- Gives you a sense of responsibility for stepping up in the financial world.
- Helps in opening new bank accounts or getting loans.
PAN is a special ID for money or tax matters. With PAN, the government can easily see who’s earning what and make sure everyone’s paying their taxes right. It’s a tool that helps both everyday people and businesses keep track of their money responsibilities.
After learning about PAN in this article, it’s clear that this system is all about building trust between the people and the government. It’s like a handshake agreement where both sides promise to do their part.