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For any Indian citizen, the PAN card is an important document for proof of identity and more importantly for all your tax purposes. With the help of the internet, the Income Tax Department of India has made PAN card application process easier over the years.
Request for a PAN card can be done through online as well as through offline methods. To apply for the card online, you can visit the official website of NSDL and fill in the necessary details. Alternatively, you can visit the website of UTIISL to do so. For applying offline, you are required to download the application form and submit the same to the agency of your choice.
Online Process to Apply for a PAN Card
Below are the steps to apply for the PAN card:
Step-1 In order to apply for a PAN card online, you will have to visit the official website of NSDL where you can fill in all the necessary information which needs to be submitted.
Step-2 Since you are a new applicant, select the option 'Apply Online' in the top left corner.
Step-3 Once done, select the 'Category'. The category list includes various options such as individual, an associate of individuals, company, Hindu Undivided Family, Limited Liability Partnership, Trust, local authority, etc.
Step-4 After choosing any one of the above-mentioned options, you will then need to fill in your details.
The information must be provided for the below sections:
Step-5 After providing the necessary information, you will have to correctly re-type a captcha code and then select 'Submit'.
Step-6 After submitting, the website will provide you with a 15-digit acknowledgment number and that page must be printed.
Process to Apply for a PAN card offline
Here are the steps to apply for a PAN card through offline methods:
Step-1 You must download the Form 49A from the official website of Income Tax Department of India or you may visit any of the Income Tax PAN service centre which is managed by UTIISL.
Step-2 Fill up the form with all the necessary sections in the 8 pages.
Step-3 Once the form is filled, you will have to send a demand draft of Rs.107 including tax along with the application form.
Step-4 You must send the form along with a copy of your ID proof and address proof to - INCOME TAX PAN SERVICES UNIT.
Applying for a PAN card or a request for correction on PAN card can be done by any individual, trusts, corporate companies, organisations, local authorities, minors, senior citizens as well as governments.
It is mandatory for every tax-payer in the country to have a PAN card in order to make any financial transactions such as receiving a salary that falls under the tax bracket, buying or investing in mutual funds. With your PAN card, Income Tax Department can track and keep account of all financial transactions.
Here are some important do’s and don’ts to be followed when applying for PAN:
Do’s For Pan Card
Don’ts For Pan Card
The Uses of PAN Card are given below:
IT Returns Filing: All individuals and entities who are eligible for Income tax are required to file their IT returns. A PAN card is mandatory for the filing of IT returns, and it is the primary reason why individuals, as well as other entities, apply for one.
Opening a bank account: A PAN card is essential to open a new bank account, whether it is a savings or a current account. All banks, whether it is public, private or co-operative, require you to submit the PAN card in order to open an account with them.
Buying or selling a motor vehicle: If you wish to buy or sell a motor vehicle which is worth more than Rs. 5, 00, 000, you must provide your PAN Card details for completing the transaction.
Applying for a credit or debit card: As per regulations, applying for a debit card or a credit card at any bank or financial institution requires you to furnish your PAN card details. If this criteria is not met, the bank will not issue the card.
Purchase of jewellery: If you want to buy any sort of jewellery valued over Rs. 5, 00, 000, you must provide your PAN card details at the time of purchase.
Making investments: Investing in securities is considered as a good way to build your wealth. If you are considering to invest in securities, you will have to furnish your PAN details for any transactions amounting to above Rs. 50, 000. This is mandatory and also extends to equities, mutual funds, bonds as well as debentures.
Proof of Identity: A PAN card is accepted as valid proof of identity anywhere across the country, and is also considered as a document for proof of age. Furthermore, it can also be used as proof of identity when making an application for a passport, driving licence, voter ID card, electricity connection etc.
Foreign Exchange: If you travel abroad and wish to convert your Indian currency into foreign currency at the money exchange bureau/bank/institution, you are required to provide details of your PAN.
Property: Proof of PAN card is required for Buying, selling or renting a property in India. In case of buying of property, the PAN details of both the buyer and the seller have to be listed on the sales deed and any such documentation for the sale to be complete.
Loans: If you are in need of a loan, all loan providers, both banks as well as any other lending institutions, require you to submit details of your PAN during the time of loan application. From education loans to personal loans and any other loans require PAN details for the loan to be approved.
Fixed Deposits: If you plan on investing money in a Fixed Deposit (FD) amounting to above Rs. 50, 000 in a bank, you are required to provide your PAN details. This must be done as the bank will deduct TDS (Tax Deductible at Source) on the FD interest amount.
Cash Deposits: At a time, if you are making a cash deposit that amounts to over Rs. 50, 000, you will have to submit your PAN details as well. This is required as per RBI mandate, which directs banks to report any large cash deposits to the RBI, in order to prevent money laundering.
Telephone Connections: If you wish to avail a new telephone or mobile phone connection, it is mandatory to submit your PAN details, as the connection will not be provided by private cellular operators without it.
Insurance Payments: Income Tax Department directives state that the details of PAN card must be furnished when making an insurance payment exceeding Rs. 50, 000 a year.
A Permanent Account Number or PAN, as it is called commonly should be owned by every taxpayer in the country and also anyone who wishes to do business in India. The government has made it mandatory for entities to quote PAN for various transactions and anyone indulging in these transactions must compulsorily own a PAN. A taxpayer or assessee can also apply for a PAN on behalf of others, including minors.
Eligibility Criteria and Documents Required for Indian Citizens
Based on whether the PAN is required by an individual, enterprise, firm, association, etc; there are numerous eligibility criteria and documents required for Indian citizens. The basic criteria are mentioned below.
Before the concept of PAN was introduced, taxpayers were assigned a GIR number. Basically, this was a manual system and was unique only within a ward or under a particular assessing officer. However, GIR number was not unique at the country level. Since it was not unique, there were higher chances of miscalculation and errors or cases of mistaken identity during tax assessment.
The GIR number was allotted by the Assessing Officer to a taxpayer and it also included the Assessing Officer's information as well.
In the year 1972, the concept of PAN was introduced by the Indian government and was made statutory under section 139A of the Income Tax Act, 1961. Initially a voluntary process, PAN was later made mandatory for all tax-paying individuals in 1976.
Initially, PAN number allotments were made manually, and to prevent duplication, each ward/circle received a certain set of numbers. But this series was abandoned in the year 1995.
Structure of PAN Card
As per the guidelines of KYC or Know Your Customer, the details furnished on a PAN card are as follows:
1) Name of the cardholder
2) Father’s name of the cardholder
3) Date of Birth of the cardholder
4) 10-character alphanumeric Permanent Account Number or PAN
5) Signature of the cardholder
6) Photograph of the cardholder
7) The PAN card also has the logo and hologram of the Government of India along with the Income Tax Department (ITD) tag.
Understanding the Permanent Account Number (PAN)
Your Permanent Account Number is not just a series of random numbers and letters. The structure of PAN is actually quite interesting. Here's what each component of PAN means:
The PAN card is necessary for the taxpayer because it is mandatory for all financial transactions and is used to monitor the inflow and outflow of the funds. It is important to pay income tax, to obtain tax refunds and to receive communications from the Income Tax Departments.
Indian Budget 2019 proposed that individuals who do not have a PAN can use their Aadhaar number to file returns and for any other reason where PAN was previously compulsory. This means that if you haven't already connected your PAN to Aadhaar, or if you don't have a PAN but have an Aadhaar, you don't have to link PAN to Aadhaar or apply for a new PAN. However, the guidelines on this are currently in the process of creating / updating/approval.
That said, PAN is still required for a large number of monetary transactions. The PAN Card is also a statement of identity. Below are some of the benefits and advantages of having a PAN.
Cost of application for PAN
A person can make an online application for his or her PAN card. This can be achieved via the NSDL website or the UTITSL server. The expense of applying for PAN can be summarized as follows:
Who provides the PAN card?
The PAN Card is provided by the Income Tax Department with the aid of authorized district-level PAN agencies, UTI ITSL (UTI Infrastructure Technology And Services Limited) and NSDL (National Securities Depository Limited). There are many TIN-Facilitation Centers and PAN centers across the country, run by NSDL, that help people get their PAN cards.
The method of releasing PAN operates on the PPP (Public-Private Partnership) model. This is achieved in order to preserve the economy, efficiency, and effectiveness of handling, preparing, and issuing PAN applications.
India's Pan Card offices list in 2020
How's the PAN Allocated?
As per the Income Tax Department, the following four types of PAN cards are issued
PAN Card for Resident Individuals
Resident individuals and HUFs fall under this category. Such entities will have to fill form 49A to apply for PAN card. PAN cards of such kind will contain the photograph of the individual/head of the family (in case of HUFs).
PAN card for individuals contains the cardholder's photograph, Permanent Account Number, their name, father’s name, gender, date of birth, QR code, hologram and signature.
Even NRIs applying for PAN are covered in this category. The procedure for application or updating details in PAN card is the same for both residents and NRIs. Resident individuals must provide their Aadhaar number at the time of PAN card application.
Residents of India have to pay a fee of Rs. 107 (inclusive of GST) for obtaining a new PAN card, whereas, NRIs having a correspondence address outside India have to pay a fee of Rs. 1017 (inclusive of GST).
PAN Card for Foreigners
Foreigners who wish to operate a business in India have to get a PAN card issued before they can carry out financial transactions. They have to apply for PAN card for foreigners by filling Form 49AA either online or offline.
The foreign individual’s PAN card contains their photograph, name, Permanent Account Number, father’s name, date of birth, signature, hologram and QR code.
The eligibility criteria for this kind of PAN is similar to that of the PAN card for Indian citizens. However, if the applicant mentions his correspondence address in India, he will have to pay a fee of Rs. 107 (inclusive of GST) whereas the amount payable will be Rs. 1017 (inclusive of GST) in case the address is outside India.
PAN Card for Companies/Trusts/Partnership Firms
The government of India has created provisions for companies, trusts, partnership firms, etc. registered in India to apply for a PAN card through various portals. They can either use the NSDL or UTIITSL portal to apply for a resident company’s PAN. Additionally, resident companies may apply for the new PAN card through MCA Portal (Ministry of Corporate Affairs) as well.
PAN Cards issued to Indian companies will contain the company’s name, registration date (instead of DoB), allotted PAN, QR code, hologram and PAN allotment date.
Such companies should fill Form 49A to apply for a PAN card if it is applied through NSDL or UTIITSL portal. If applied through the MCA portal, the company has to fill the common application form SPICe-INC 32. However, if companies want to update their details in PAN card, they have to get it done either through the NSDL portal or UTIITSL portal by filling Form 49A.
PAN Card for Foreign Companies
Foreign companies planning to carry out business in India have to get PAN cards issued before they can begin investing in the country. Such companies can apply for PAN cards directly through the NSDL or UTIITSL portal online by filling form 49AA.
It takes approximately 45 days to get the PAN card issued and delivered to the address mentioned in the application form. A fee of Rs. 107 (inclusive of GST) will be payable for new PAN.
Foreign companies have to submit the following documents mandatorily at the time of PAN card Application for Foreign companies:
New Design of PAN Cards
The Department of Income Tax has modified the design of the PAN coin. This has made several changes to make it more customer-friendly and stable. The IT Department has begun to release new PAN cards after July 7, 2018. It should be remembered that PAN cards issued prior to the above date will still remain valid. However, if you want to receive a new PAN card, you will have to submit an online PAN card order.
New updates to the PAN card
Income Tax Department made the following additions to the PAN card:
Enhanced QR Code in PAN Card
Enhanced QR code contains the PAN cardholder's photograph and signature in addition to the current information such as the PAN, gender, father/mother's name, and date of birth (date of incorporation/formation in the case of non-individuals). These data are digitally signed and stored in the modern Improved QR file.
The improved QR code can be read by a particular smartphone device (Enhanced PAN QR Code Reader). It is advised to scan the code using an autofocus camera with a resolution of 12 megapixels and above.
The improved QR code is also given in the e-Permanent Account Number (e-PAN).
Position of the PAN Card information
The position of the different details has been reset in the new design of the PAN card. Adjustments have been made to the new PAN card:
The PAN card at DigiLocker
The PAN card can also be found in the DigiLocker app. The PAN card given in the DigiLocker app can be accessed from the PAN authentication records of the revenue tax department.
The PAN in DigiLocker consists of the name of the person, the gender, the date of birth, and the PAN. It also includes the QR code that can be used to validate information on the PAN card. A logo named "DigiLocker Checked" is also listed in your PAN.
Users can get the PAN card in your DigiLocker account by taking the steps below:
Nowadays, applying for a PAN card has become easier for people as they can apply for a fresh PAN online as well as offline. Let's see how to apply for PAN card in both ways.
Follow the below steps to apply for a PAN Card Online:
The government has put together provisions for applicants to apply for PAN through the Income Tax PAN Services Unit of NSDL. Follow the below steps to easily apply for a PAN online:
Step 1: Open the NSDL site https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html for applying a new PAN.
Step 2: Select the type of application – New PAN for Indian citizens, new PAN for foreign citizens or for change/correction in existing PAN data.
Step 3: Select your category – individual, body of individuals, associations of persons, etc.
Step 4: Fill in all the required details such as your name, date of birth, email address and mobile number in the PAN form.
Step 5: Once the form is submitted, you will get a message regarding the next step.
Step 6: Select “Continue with PAN Application Form”.
Step 7: You will then be redirected to the new page where you have to submit your digital e-KYC.
Step 8: In the next part of the form, enter your personal details.
Step 9: Enter your contact and other details in the next part of the form.
Step 10: Enter your area code, AO Type and other required details in this part of the form. You can also find these details in the below tab.
Step 11: Now the last part of the form is the submission of the document and declaration.
Step 12: You will have the option to see your completed form to make corrections if any. If you do not want to make any corrections, select Proceed button.
Step 13: You will arrive at the payment section where you should make payment either through demand draft or through netbanking, debit or credit card.
Step 14: Once payment is done, you will be issued the acknowledge form with the 16 digit acknowledgement slip.
Step 15: You must take a print of this acknowledgement form.
Step 16: Attach two of your recent passport size photographs and sign in the space provided on the acknowledgement form.
Step 17: All the documents (self-attested) mentioned in the form must be enclosed along with the Demand draft (if payment wasn't done online) and acknowledgement form.
Step 18: Lastly, you must post the envelope containing all the above documents to the NSDL address.
An email will be sent to you on receipt of the application.
Applying for a PAN Card Offline
Applicants may also choose the offline method to apply for the PAN card. They can visit the nearest TIN NSDL centre and follow the steps:
You must mention ‘APPLICATION FOR PAN-N-Acknowledgement Number’ superscripted on the envelope of the application form and send it.
A common misconception about the PAN card is that it is needed only for those who receive a job or a business. However, every individual is required to do so at some point in their lives, even if they do not earn a living. Apart from being used for filing income tax returns, PAN has a variety of other significant applications, not just for earners. Read on to see what the PAN card can do for a non-earning individual.
The PAN or Permanent Account Number is allocated to all organizations engaging in financial activities in India. It is used by individuals and companies to file income tax returns and to carry out high-value transactions (mostly more than 50,000). PAN is a unique alphanumeric code created for the lifetime of the person concerned. In the event that a person misplaces his or her PAN, he or she may opt to reprint the card instead of applying for a new PAN. The applicant can checks the status of PAN card distribution online for both new and PAN card reprinting.
How to Monitor the Status of PAN Card Distribution Online Via the UTIITSL Portal
Who have completed an application online for a PAN card via UTIITSL can use this facility to track the status of the PAN card distribution. It is worth mentioning that applicants who have not completed the application via UTIITSL will not be eligible to use this service. The applicant can track the status of the distribution of the PAN card online via the UTIITSL portal by following the steps set out below:
Steps to Track the Status of PAN Distribution Online Via the NSDL Portal
Applicants who have completed their PAN application through the TIN-NSDL portal can track the status of the PAN card application (both new and reprint/update) online through the TIN-NSDL portal.
There are two ways to test the status of a submission on the NSDL database:
Tracking through the Acknowledgement Number
Tracking by Name and Date of Birth
How to Track the Status of the PAN Card Delivery through the Speed Post
If your PAN card is created or renewed, it will be sent to the address specified in the application form. When you check the status of the PAN card submission on the UTIITSL or NSDL page, the consignment number is indicated in the status of the transaction. Here's how you can test the status of the PAN card delivery via the pace post:
Applying for a new PAN require you to submit some documents as proof of identity, proof of address and proof of date of birth. The requirement and validity of documents alter from applicant to applicant and also with the purpose of the application. You can apply either for a new PAN or for correction in the existing PAN and also for the reissuance of PAN Card in case of its loss or damage.
Proof of Identity, Proof of DOB and Address proof are the three types of essential documents required for PAN application by an Individual Indian Citizen or a Hindu Undivided Family (HUF). For the requirement of each proof, the Income Tax Department has suggested a list of documents.
(i) If applicant is a minor, parents’/guardian’s proof of identity shall be deemed to be the proof of identity and address for the minor applicant.
(ii) In the case of HUFs, an affidavit by the karta of the HUF declaring the name, father’s name and address of all the coparceners on the date of application will be considered as a proof of identity.
Note: Utility Bills and Bank/Credit card statements should be recent, preferably it should not be more than three months old.
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