The PAN, or permanent account number, is required to create a bank account, submit taxes, make investments in securities, and carry out any other financial transaction. The PAN and the cardholder’s identification are contained on the PAN card. The search for a person’s Permanent Account Number not only provides identification for tax reasons but also stores all pertinent financial information about that person. For many elements of your financial life, then, you must know your Permanent Account Number. Let’s investigate all the information regarding this crucial card.
PAN Card: What Is It?
The Income Tax Act of 1961 authorizes the issuance of PAN cards, which have a distinct 10-digit alphanumeric code on them. This code is created by a machine, specific to the card bearer, and is good for life.
Who can Apply for a PAN Card?
PAN card eligibility is not restricted to people. In addition to individuals, companies and partnership businesses are required to obtain a PAN Card to file their income tax returns. PAN Card applications may be submitted online by individuals, minors, students, and non-resident Indians.
How to Apply for a PAN Card
The online application process and the offline technique are the two ways to apply for a PAN card. In the following sections, we will cover the process of applying for and getting a PAN card.
Online Procedure for Applying for a PAN Card
The UTIITSL portal or the NSDL portal (now Protean) are the two online applications for PAN cards. When enrolling and applying online for a PAN card, the following steps need to be followed:
- Step 1: Go to the NSDL or UTIITSL website to submit an online PAN card application.
- Step 2: Choose “New PAN” as your selection.
- Step 3: Select PAN card form 49A for each individual, regardless of whether they are an OCI, NRE/NRI, or citizen of India.
- Step 4: Provide the person’s details in this form.
- Step 5: After submitting the form, the applicant must additionally pay the processing cost online or by demand draft for the form to be processed.
- Step 6: An acknowledgment sheet with the 15-digit acknowledgment number is created upon the payment of the fees and submission of the PAN Form 49A.
- Step 7: You have 15 days from the time you submit Form 49A online to the UTIITSL or NSDL PAN offices to either courier the completed application and required documents, or you can e-sign the application using Aadhaar OTP authentication.
- Step 8: The card is created following the NSDL/UTIITSL PAN verification, and the PAN no. is verified once the acknowledgment form is couriered to the relevant office. Within 15 days of receiving the completed form, the customer’s address is where the real PAN card is delivered.
How to Apply Offline for a PAN Card
Any district-level PAN agency is where you can apply offline for a PAN card:
- Get a copy of the PAN card application form 49A at the UTIITSL or NSDL office, or download it from their website.
- Complete the form and affix supporting documentation (photos, proof of address, and identification).
- Send the completed form, supporting documentation, and processing fee to the NSDL/UTIITSL office.
- The address on the application will receive the PAN card within 15 working days.
PAN Cards Forms
- Filling out Form 49A or Form 49AA will allow them to apply for a PAN card.
- Form 49A is completed for Indian persons or businesses, whereas PAN card form 49AA is filled out for foreigners.
- PAN cards can also be obtained by minors and students by filling out PAN card form 49A.
- Some versions can be accessed offline and online.
- The components of both variants are as follows: Among the data are the Assessing Officer Code (AO Code), Aadhaar number, name, address, date of birth, phone number, and email address.
- The applicant must sign the declaration and submit it to the TIN-NSDL/UTIITSL office together with copies of the document proofs that have been self-attested.
How to Request a Replica PAN Card if Your Original PAN Card Is Lost
You may apply both offline and online for a duplicate PAN card if you have misplaced your original one. For a duplicate PAN card, users can apply online with TIN-NSDL and UTIITSL, filling out the necessary documentation. This is the method to follow:
- Apply online for a duplicate copy of your PAN card at TIN-NSDL or UTIITSL.
- If you are an Indian citizen, complete Form 49A; if you are a foreigner, complete Form 49-AA.
- You can either obtain a demand draft or make the payment online.
- If you are applying through NSDL, now print your form and mail it to the following address: NSDL e-Governance Infrastructure Limited, Income Tax PAN Services Unit, 5th Floor, Mantri Sterling, Plot No. 341, Survey No. 997/8, Model Colony, Near Deep Bungalow Chowk, Pune – 411 016.
- Your PAN card will arrive within the following 15 to 20 days.
PAN Card Types
Given that PAN Cards may be obtained by both persons and entities, various PAN Card kinds must be applied for using various forms of Form 49 that the government issues. These are the many PAN Card kinds and the various forms needed to obtain them.
PAN Cards for Individuals
The most popular version of the PAN Card that is given to people is this one. Form 49A, which is accessible online via the websites of the NSDL and UTIITSL, is used to apply for this card. Any resident Indian, including minors and students who qualify for a PAN card, is considered an individual.
PAN Card for Non-Resident Individuals or Persons of Indian Origin
PAN Cards are available to NRIs and PIOs so they may file taxes in India. They would also need to provide Form 49A to receive this card.
PAN Card for International Taxpaying Entities in India
A PAN Card can also be obtained by corporations or firms that are incorporated outside of India but pay taxes there because of their commercial activities. Form 49AA would need to be completed and submitted by them as part of the PAN card application procedure.
PAN Card for OCI and NRE
Non-resident entities and Indian citizens living abroad are also eligible to apply for a PAN Card. Form 49AA is the pertinent form that they must complete to apply for a PAN card.
PAN Card for Businesses in India
Companies and business organizations that are both registered in India and employed there may also apply for a PAN Card to use for tax and financial activities.
Structure of PAN Card – PAN Card Details
Complying with the Know Your Customer (KYC) rules, a PAN card can serve as an identification and age verification due to its basic information. The following information is on the card:
- Name of the cardholder: The name of the cardholder is the main and most prominent data on the PAN Card. For an individual, it is their name; for a corporation, it is the registered name of the business; and for a partnership firm, it is the name of the business that appears on the PAN Card.
- Name of the cardholder’s father: This is relevant for individual cardholders. The individual’s name is followed by the name of the cardholder’s father.
- Date of birth: When a person has a PAN card, their date of birth appears beneath their father’s name. This information serves as verification of the person’s birthdate.
- Permanent Account Number (PAN): The PAN, or Permanent Account Number, is the PAN card’s next and most crucial component. This number, which is exclusive to each individual or organization holding the card, includes certain important details. The information supplied by the entity is used to produce the number. Each of the ten characters that make up the PAN’s alpha-numeric number conveys a piece of information. These details are as follows:
- First three letters: These three letters include three letters each from A to Z and are strictly alphabetical.
- Fourth letter: The entity’s taxpayer category is indicated by the fourth character of the PAN.
- The initial letter of the person’s surname is the fifth letter.
- The remaining characters and letters are at random. While the final letter is an alphabet, the first four are integers.
- Individual signature: The signature is the final piece of information on the PAN card. Because of this, a PAN Card serves as evidence of the signature that is needed for several financial activities.
- Individual’s photo: The PAN card’s bottom right corner also has the cardholder’s photo, allowing it to serve as verification of the individual’s identification. The card for corporations and firms does not have a photograph on it.
Benefits of a PAN Card
A PAN Card’s primary applications are as follows:
- To file tax returns, both individuals and entities (such as partnerships, corporations, HUFs, etc.) must cite their PAN. This is a need that must be met. Individuals and companies would have to pay a flat tax of 30% on their earnings in the absence of a PAN card, regardless of whatever income-tax category they may be in. Therefore, a PAN is necessary for tax purposes, and one may use their Permanent Account Number to verify the status of their PAN card.
- Business registration: If a company, partnership firm, Hindu Undivided Family, or other entity does not have a PAN to provide in the registration documents, they will not be able to register their business.
- To perform financial transactions: Only with the availability of the individual’s or entity’s PAN card may a variety of financial activities be completed. The sale or purchase of any immovable property valued at Rs. 5 lakh or more, the sale or purchase of any vehicle other than a two-wheeler, the deposit of any amount over Rs. 50,000 in a bank, the purchase of bonds valued at Rs. 50,000 or more, the remittance of funds outside of India, and travel expenses exceeding Rs. 25,000 are some common transactions made possible by the PAN card.
- For obtaining utility connections: A PAN card is useful in many situations when utilities such as a post-paid mobile phone connection, an LPG connection, an electricity connection, an internet connection, etc. are needed. If at all feasible, it is advised that you utilize an alternative form of identification, such as a voter ID card or driver’s license.
- When creating a bank account, the PAN card is now a mandatory need due to the bank’s stricter Know Your Customer (KYC) policies. Banks also do individual number verification throughout this process.
Tracking your PAN card, making inquiries about it, and checking its online status
Understand your PAN Status
Following the application, one may check the status of a PAN card online. It is possible to follow the application status for a PAN Card, which indicates whether the card has been granted or is still in transit. On the corresponding websites, the applicant may check the status of their PAN card, UTI PAN card, or NSDL PAN card. Both the NSDL and UTI PAN Card statuses, which display the corresponding PAN application statuses, are available on the NSDL website and UTIITSL, respectively. As a result, PAN Card status may be monitored online, and online PAN Card status can be determined.
Making modifications to a PAN Card
The Permanent Account Number is retained by current PAN card holders even when they make modifications to their card’s data. Using this technique, any corrections to the PAN Card’s details can also be made. To do this, a PAN Card update or correction form must be completed and sent to the appropriate government.
PAN Card Duplicate
The applicant may also apply for a duplicate PAN card in case of loss by filling out the necessary form and paying the processing charge.
What occurs if you lack a PAN Card
There are several justifications for getting a PAN card:
- Financial transactions over Rs 50,000 will not be permitted if your PAN is not provided.
- PAN is required when purchasing or selling real estate.
- Without your PAN card, you would not be able to file income tax returns.
- If you exclude your PAN from your credit card or loan application, it will be denied.