How to Apply for PAN Card

• What is PAN Card?
• Who should obtain PAN Card?
• Historical background of PAN Card?
• Different forms required?
• Documents required?
• Application Procedure?

PAN- Permanent Account Number

Meaning of PAN?

“Permanent Account Number (PAN)” is a ten digit alphanumeric number which is issued by Income tax Department (ITD) under section 139A Income Tax Act, 1961. It is a unique identification number which contains the track record of all the income related aspects of an individual.

Figure 1: Pictorial Representation of PAN Card (Front & Back)

 Now we shall discuss the significance of 10 digit PAN card number in detail.

1st – 5th characters

First 3 characters: Alphabetic series from AAA to ZZZ 4th character: Represents Status of PAN card holder "P"- Individual "C"- stands for Company "H"- stands for Hindu Undivided Family (HUF) "A"- stands for Association of Persons (AOP) "B"- stands for Body of Individuals (BOI)

"G"- stands for Government Agency "J"- stands for Artificial Juridical Person "L"- stands for Local Authority "F"- stands for Firm/ Limited Liability Partnership "T"- stands for Trust 5th character: Represents first letter of PAN holder’s last name i.e. surname in case of Individual.

Other Than Individualit represents the first letter of PAN holder’s name.

 6th-9th Characters

Represents a sequence of number series from 0001 to 9999.

10th Character

 Represents Alphabetic check digit

Who should obtain PAN?

• Person whose total income in the assessment year exceeds the chargeable limit.
• Trust/charitable institution who are required to file income derived from property held under their name. (Section 139-4A Of IT Act, 1961).
• Business/Profession whose total sales/revenue/gross receipts exceed the limit.
• Financial transaction in which mentioning of PAN card is mandatory.

Historical background of PAN?

Prior to the introduction PAN in 1972, a taxpayer was to be identified using General Index Registration No. (GIR No).It was a manual operating system, unique to individual assessing officer circle which ultimately resulted in errors/miscalculations.

• It was unique only to the circle level not at the national level.
• Therefore in 1972, government of India came up with the idea of PAN (based on old series i.e. GIR No. series). This also lacked the nationwide uniqueness.
• Allotment of PAN Card was made manually initially, and to avoid duplication, each ward/circle was provided with a certain set of numbers.
• There were many reasons because of which GIR No. & PAN (old series) was not successful.
• No database to check the multiplicity of PAN allotment.
• No centralised authority
• No permanent number for the taxpayers
• Non-structured database limited to few parameters.

Different forms required?

Form 49A: Indian nationals/Entities incorporated in India

Under section 139A of Income tax act, 1961; Application form 49A is for the allotment of PAN Card for Indian nationals, entity incorporated in India. It is used for applying a new PAN or any modifications submitted previously.

Form 49AA: Foreign citizens

Rule 114 of Income tax act, 1962 requires foreign citizens applying for PAN Card in India by filing form 49AA. It is filled by foreign nationals/entities incorporated outside India but have substantial taxation liability of their activity in India.

Form 60: Individual/person does not have PAN Card but enters into transaction mentioned under Rule 114B.

Documents required?

While applying for a PAN Card, some documents are also required to be attachedForm 49A or Form 49AA or the acknowledgement form (if applying online) for PAN card verification process. Key documents required with the PAN application form when individuals or other entities apply for a PAN card.

For an individual applicant:

Identity Proof

• Government ID – Aadhar, Driving License, Voter ID, etc.
• Arms License
• Pension Card containing applicant photograph
• Photo ID card issued by Central Government, State Government or a Public Sector Undertaking (PSU)
• Central Government’s Health Scheme Card or Ex-Servicemen’s Contributory Health Scheme Photo Card
• Bank certificate which is issued on the bank’s letterhead from the branch of the bank containing an attested photograph of the applicant along with the bank account number.

Address proof

Electricity/Landline Bill Post-paid mobile phone bill Water bill LPG or piped gas connection bill or Gas Connection book Bank account statement Credit card statement Post Office account Passbook Passport Voter’s ID Card Driving License Property registration document

Domicile certificate Aadhar Card Date of birth (DOB) proof Birth certificate by the Municipal Authority/authorized authority Matriculation certificate Pension order Passport Marriage certificate Driving license (DL) Domicile certificate (DC) Affidavit sworn before a magistrate stating the applicant’s date of birth

For a Hindu Undivided Family (HUF)

• Affidavit issued by the Karta of the HUF stating the name, address and the father’s name of every member
• Identity proof, address proof and date of birth proof as the case maybe.

For a company registered in India

Certificate of Registration issued by the Registrar of Companies (ROC).

For firms and Limited Liability Partnerships (LLP) formed or registered in India

Registration certificate issued by the Registrar of Firms/Limited Liability Partnership (LLP)

For individuals who are not Indian Citizens

Identity Proof Passport copy PIO card photocopy OCI Card photocopy Copy of other national or citizenship Identification Number or TIN attested by applicable ‘Apostille’, Indian Embassy, High Commission or Consulate where the applicant is based.

Address proof Passport copy PIO card photocopy OCI Card photocopy Copy of other national or citizenship Identification Number or TIN attested by relevant  ‘Apostille’, Indian Embassy, High Commission or Consulate Copy of bank statement of the residential country Copy of NRE bank statement in India Copy of resident certificate or Residential permit

Application procedure for PAN Card?

There are two ways of applying for PAN card online.

1. National Securities depository limited (NSDL): www.tin-nsdl.com
2. UTI infrastructure technology & services ltd. (UTIITSL): :www.utiitsl.com

OFFLINE PROCESS: Any person who wish to apply for PAN Card, can apply by submitting the Form 49A/49AA along with the required documents & prescribed fees for the same at the NSDL/UTIITSL authorised application centres. Following steps should be followed to get your PAN Offline.

• Download the application form from NSDL/UTIITSL website.
• Complete the form, attach the supporting documents for POI/POA.
• Submit duly filed form with NSDL/UTIITSL.
• You will receive your PAN Card within 15 working days.

ONLINE PROCESS:Person who wish to apply online for PAN Card could do so by visiting the above mentioned company website and fill the application form for the same. Following steps should be followed to get your PAN Online.

• Visit the any of the mentioned website link: NSDL / UTIITSL.
• Fill the online application form.
• Processing fees to be paid using Net Banking/Debit credit card/Demand draft.
• After processing fees is paid final page contains 15 digit Acknowledgment number.
• After receiving acknowledgement number, one should send this to NSDL along with form 49A within 15 working days.
• PAN Card number is generated once the verification is done by NSDL.

 TRANSACTIONS IN WHICH PAN CARD IS MANDATORY

There are various transactions in which attaching your PAN details is mandatory. These exceptions are specified under Rule 114Bof the Income tax rules, 1962 which came into effect from 01, Nov, 1988.

There are total 18 Transactionsat present which mandatorily require to mention PAN card details which are as follows:-

• Sale/purchase of Motor vehicle as specified under Motor vehicle act, 1988 which requires registration. 
• Opening of Bank A/c with a banking company or a co-operative bank which are regulated by banking regulation act, 1949. 
• Making an application to a banking company/financial institution/co-operative bank for the issuance of Credit or Debit card. 
• Opening of Demat A/c under SEBI Act, 1992. 
• Paying your bill at a hotel/restaurant (Cash payment exceeding INR 50,000) 
• Payment in relation with travelling to any foreign country or currency exchange for the same. (Cash payment exceeding INR 50,000) 
• Mutual fund payment for purchasing additional unit. (Amount exceeding INR 50,000) 
• Payment to acquire bonds/debentures of a company. (Amount exceeding INR 50,000) 
• Purchase of bonds issued by RBI. (Amount exceeding INR 50,000) 
• Deposit with a banking company/co-operative bank/post office regulated by banking regulation act, 1949. (Cash deposit exceeding INR 50,000)
• Purchase of Demand deposit/Pay order/bankers cheque from a banking company/co-operative bank regulated by banking regulation act, 1949. (Amount exceeding INR 50,000)
• Time deposit with a banking company/co-operative bank/Post office/Nidhi company/NBFC. (Amount exceeding INR 50,000 or amount exceeding INR 5,00,000 during a financial year)
• Any pre-paid payment instrument as defined by RBI under Payment & settlements act, 2007.
• Premium of Life Insurance premium paid. (Amount exceeding INR 50,000 during a financial year)
• Sale/purchase of securities under Securities contracts act, 1956. (Amount exceeding INR 1,00,000)
• Sale/purchase shares of a company not listed on stock exchange. (Amount exceeding INR 1,00,000)
• Sale/purchase of any immovable property. (Amount exceeding INR 10 lakh)
• Sale/purchase by any person of goods/service of any nature except those mentioned from 1 to 17. (As notified by the central government)

IMPORTANT POINTS TO REMEMBER

When a person involved in any of the above mentioned transactions, is a MINOR& does not have any income chargeable to income tax, he/she should mention the PAN Card details of father/mother/guardian.

Anyone who does not have a PAN Card and enters into any of the above mentioned transaction, must fill Form No. 60 as per Rule 114B of Income tax act, 1962.

• Note PAN Card details are required in case of Tax deduction at source i.e. TDS or Tax collection at source i.e. TCS under section 139 [5b &5c] respectively.

FREQUENTLY ASKED QUESTIONS {FAQ}

Ques. How can an individual apply for PAN Card?

Both online and offline ways are available to apply for PAN card. You can apply for PAN card by visiting any of the two websites and apply. (1) NSDL (2) UTIITSL. By visiting PAN centre and filing it in physical form and submitting it.

Ques. Where can I get PAN application form?

There are two ways of getting PAN application form. (1) Visiting PAN centre (2) Downloading form 49A (Indian Nationals) & 49AA (Foreign citizens) from NSDL/UTIITSL website.

Ques. Are there any charges on PAN card application?

If Communication Address Is Within India

Fees for processing application is INR 110 [Application fees 93 + 18% GST]

If Communication Address Is Outside India.

Fees for processing application is INR 1020 [(Application fees 93 + Dispatch charge 770) + 18% GST]

Ques. How to check whether your PAN card is active or not?

You can track your application form by visiting any of the mentioned links

(1) https://tin.tin.nsdl.com/pantan/StatusTrack.html

(2)https://www.trackpan.utiitsl.com/PANONLINE/trackApp

Ques. Can a minor apply for PAN card?

Yes, minor can apply for PAN card.

Ques. Is It Necessary To Have PAN?

 Yes, it is necessary to have a PAN for all those individuals who come in the tax bracket and are liable to pay an income tax. One would not be able to file ITR without valid PAN and even the bank accounts not having PAN number attached with them, will be deactivated soon.

Ques. Who Can Apply On Behalf Of A Minor/Mentally Challenged/Wards Of Court?

Under section 160 of Income tax act, 1961, a representative assesse can represent a minor, mentally challenged & wards of court.

Ques. Is It Compulsory To Quote PAN On “Return Of Income”?

Yes, it is mandatory to file PAN number on your income tax return.

Ques. While relocating from one city to another do I have to change my PAN?

No, PAN is permanent in nature and remains same even if you relocate within India.

Ques. Can an individual hold more than one PAN Card?

No, an individual cannot hold more than one PAN.

One shall be penalized under section 272B of Income tax act, 1961 for holding more than one PAN.

Doing so may attract a penalty of INR 10,000.

Ques. How to know your PAN details, in case you have lost your PAN Card/in any other case?

You can visit the Income tax website anytime and by providing your core details like your name/fathers name/date of birth, you can get your PAN details online.

After knowing your PAN you can also submit the request for duplicate PAN Card.

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• Last Date To Link Your PAN-Aadhar.
• How To File TDS Return Online.
• Check If Your PAN Is Active Or Not?