PAN Registration in Nepal: A Step-By-Step Guide

Introduction of PAN

PAN is an exclusive alphanumeric designation that is allocated to both individuals and businesses with the intent of monitoring and overseeing their financial transactions.

It serves as an instrument for taxation and identification of entities and individuals conducting financial transactions. It was established by the Department of Inland Revenue (IRD). PAN cards are mandatory for all entities and individuals participating in financial transactions.

Submitting an application form with all necessary supporting documents to the IRD constitutes the application process. Typically, the documents comprise evidence of income, identity, and address.

Critical information is contained on the PAN card, including the name, PAN number, photograph, and date of birth or incorporation of the individual or entity.

Government oversight of financial transactions and compliance with tax obligations are made possible through the PAN’s unique identification number.

PAN Registration Governing Law in Nepal

The registration procedure for Permanent Account Numbers (PANs) in Nepal is regulated by the Inland Revenue Department (IRD) under specific statutes.

The Income Tax Act of Nepal, which was implemented in 2002 (2058), establishes the legal framework for the mandatory possession of a PAN. Additionally, it delineates the duties and obligations that both individuals and entities have in relation to tax affairs.

The Income Tax Rules delineate the specific procedural aspects required to execute the stipulations of the Act. Rule 10 of the Income Tax Rules, 2059, provides an in-depth analysis of the PAN application procedure, including the necessary documentation, and the steps involved in acquiring a PAN card.

Procedure of PAN Registration in Nepal

The registration procedure for a PAN (Permanent Account Number) in Nepal comprises the subsequent comprehensive steps:

1. Visit the IRD Portal

Commence the PAN registration procedure by accessing the official Inland Revenue Department website. Navigate to the ‘Registration’ section of the portal, where you will find a variety of options pertaining to registration.

2. Submit the Registration Application

When individuals navigate to the ‘Registration’ section, they will be presented with a Comprehensive Registration Form. It is critical to diligently complete the fields that require information.

Determine the IRD office in closest proximity to the geographical location in the ‘Verifying Offices’ section. Following the conclusion of the task, a distinct submission number will be generated.

3. Submit the Application for PAN

Individuals should click the ‘Continue’ icon to continue to the PAN application form after the submission number. As specified in the application e-form, a recent photograph and any other pertinent supporting documents must be uploaded.

 Upon careful completion, proceed by selecting the ‘Save’ icon. Users may access their accounts by logging in with their registration information, which consists of the submission number, username, and password, should any modifications be required.

Save the changes by selecting ‘Submit’ and proceed to produce a hardcopy by selecting ‘Print’.

4. Provide IRD with a printed application

Applicants must bring the printed copy of the PAN application form they submitted to the IRD office in their locality. At the IRD office, the submitted application will be subjected to a thorough verification process.

The IRD office will issue the PAN card following verification. Individuals must also bring their citizenship certificate, two passport-sized photographs, and any other valid foreign identification document in addition to the application form.

5. Issuance of PAN

Following this, in accordance with the Income Tax Act, the Unique Permanent Account Number is issued by the Inland Revenue Department and is mandatory for both individuals and businesses to display.

Required Documents for PAN Registration

Accompanied by the application form must be the requisite supporting documents for a Company. The required documents may differ depending on the category of applicant:

  1. A certificate of citizenship or passport for individuals. • A certificate of incorporation for corporations.
  2. Partnership deed, applicable to partnership entities.
  3. Memorandum of Association and Articles of Association for organizations and associations.

Additional Details for PAN Registration

Prior to the implementation of the current fee-free policy, PAN registration in Nepal entailed a prescribed payment obligation from applicants. In accordance with the application form, individuals submitting PAN applications must include the appropriate genuine supporting documents.

A PAN is a mandatory document for participation in a range of financial activities, such as initiating property transactions, undertaking business operations, and opening bank accounts.

PAN is a nine-digit number that has been given permanent validity. The official website allows users to ascertain the current status of their PAN application.

Conclusion

A unique alphanumeric code, the Permanent Account Number (PAN) is utilized in Nepal to monitor and control financial transactions.

The PAN registration procedure, which is regulated by the Income Tax Act and Rules, consists of the following: accessing the Inland Revenue Department (IRD) portal, completing and uploading a comprehensive form, submitting the PAN application, and physically delivering the printed form to the IRD office for verification.

It is mandatory to exhibit the issued PAN card when conducting financial transactions. It used to cost money, but now it’s free.

Disclaimer: This article is for informational purposes only and shall not be construed as legal advice, advertisement, personal communication or solicitation. Specific advice of professionals must be sought for each case.

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