PAN Card - Permanent Account Number (PAN) in India
Permanent Account Number or PAN is a means of identifying various taxpayers in the country. Pan Card is a 10-digit unique identification alphanumeric number (containing both alphabets and numbers) assigned to Indians, mostly to those who pay tax.
The PAN system of identification is a computer-based system that assigns unique identification number to every Indian tax paying entity. Through this method, all tax-related information for a person is recorded against a single PAN number which acts as the primary key for storage of information. This is shared across the country and hence no two people on tax paying entities can have the same PAN.
When PAN is allotted to an entity, PAN Card too is given by the Income Tax Department. While PAN is a number, PAN Card is a physical card that has your PAN as well as name, date of birth (DoB), father’s or spouse’s name, and photograph. Copies of this card can be submitted as proof of identity or DoB.
*Your PAN Card is valid for lifetime because it is unaffected by any change in address.
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Deadline for Linking PAN Card and Aadhaar Card is 31 March 2023
The last date the link the PAN and Aadhaar has been extended to 31 March 2023. However, individuals who do not link their Aadhaar and PAN by 31 March 2022 will have to pay a fine. The fine will be Rs.500 if the PAN and Aadhaar are linked by 30 June 2022. The fine will be Rs.1,000 if the linking is done between 1 July 2022 and 31 March 2023.
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How to Apply for PAN Card
PAN Card application can be made online on one of the following websites:
You can also apply offline at any of the district-level PAN agencies. You can apply for a new Pan Card as well as make correction or change information yourself. You can even request for a duplicate PAN Card or reprint the card if you lose the original.
For new PAN, Indian citizens and NRIs (including companies, NGOs, partnership firms, local bodies, trusts, etc.) need to fill Form 49A. Foreigners and foreign entities need to use Form 49AA. These forms, along with all the required PAN documents, should be submitted to the Income Tax PAN Services Unit.
Once you apply for a new or duplicate PAN, or request for corrections/changes, you can track the status of PAN application via the acknowledgement number provided.
As per the Protean eGov Technologies Limited website (formerly NSDL), the entire process of printing and dispatching cards takes approximately 2 weeks or 14 days
- Fill in all the details as per the identity and address proof documents you are submitting.
- Get your thumb impression attested by a Magistrate/Notary before submitting the form, to avoid disqualification.
- Write the complete address and provide accurate contact details in the form.
- Fill in the application form in capital letters.
- Don't make corrections or over-write anywhere on the form.
- Do not use initials in the first name or last name columns.
- Do not apply for a new PAN card if your old PAN card is lost/stolen/defaced. Request for a duplicate PAN instead.
A PAN card acts as an important document which you can use for various purposes. Not only it is a nationally accepted identity proof but it is also an important document while filing the income tax (IT) returns. Apart from this it is also used to perform various personal and business transactions.
The following are the list of transactions which can be done only if you have your PAN card:
- Opening a bank account
- Filing your IT returns
- Applying for a loan
- Applying for a gas or telephone connection
- Purchasing or selling a new property
- Getting a debit or credit card
- Opening a fixed deposit account
- Making insurance premium payments
How to apply for a PAN card
The following are the steps which will guide you to apply for a PAN card:
- Visit https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html
- Select the application type
- Choose your category
- Enter all the required information such as your name, date of birth, email ID, and mobile number
- Agree to the terms and conditions
- Enter the Captcha Code
- Click on “Submit”
- You will be redirected to a new page, where you will get an acknowledgement number
- Send all the photocopies of your document by post or courier to NSDL
- Once your documents are verified, you will receive the physical copy of your PAN card
You can check your PAN card status by using your 15-digit acknowledgement number on the NSDL website.
Documents required for applying for a PAN card
Here are the documents which are required to apply for a PAN card:
- Aadhar card
- Voter ID card
- Passport
It is important to fill the application accurately to avoid any issue when it comes to PAN card.
Why Is PAN Important? – Uses and Benefits of Having PAN Card
PAN Card is important for taxpayers as it is necessary for all financial transactions and is used to track the inflow and outflow of your money. It is important when paying income tax, receiving tax refunds, and receiving communication from the Income Tax Department.
The Indian Budget 2019 proposed that individuals who do not have a PAN can use their Aadhaar number to file returns and for any other purpose where PAN was earlier mandatory. This means that if you have not link pan with aadhar yet, or do not have a PAN but have an Aadhaar, you don't have to either link PAN and Aadhaar, or apply for a new Pan Card. However, the rules about this are still in the process of creation/updation/approval.
PAN Card is important for taxpayers as it is necessary for all financial transactions and is used to track the inflow and outflow of your money. It is important when paying income tax, receiving tax refunds, and receiving communication from the Income Tax Department.
That said, PAN continues to be necessary for a large number of monetary transactions. PAN Card also serves as a proof of identity. Given below are some of the uses and advantages of having a PAN.
Uses of PAN in Financial Transactions
- PAN needs to be quoted while paying direct taxes.
- Taxpayers need to input their PAN when paying income tax.
- While registering a business, PAN information needs to be furnished.
- A lot of financial transactions require PAN information. Some of these transactions are:
- Sale or purchase of property (immovable) which is valued at Rs.5 lakh or above
- Sale or purchase of a vehicle except a two-wheeler
- Payments made towards hotels and restaurants and which are above Rs.25,000
- Payments made in connection with travel requirements to other countries. The amount in this case if it exceeds Rs.25,000, then you need to quote your PAN
- Payments of more than Rs.50,000 towards bank deposits
- Purchase of bonds worth Rs.50,000 or more
- Purchase of shares worth Rs.50,000 or more
- Purchase of insurance policy worth Rs.50,000 or more
- Purchase of mutual fund schemes
- Payments made for more than Rs.5 lakh towards purchase of jewellery and bullion
- To remit money out of India
- Transfer of funds from NRE to NRO account
General Uses/Advantages of Having PAN
- Since PAN Card contains information such as Name, Age and photograph, it can be used throughout the country as a valid identity proof.
- PAN is the best possible way to keep track of your tax payment. Otherwise, you might be required to pay it multiples times since your tax payment cannot be verified.
- Since PAN is unique for every entity, its misuse is almost impossible for purposes of tax evasion or other devious means.
- PAN Card can be used to avail utility connections such as electricity, telephone, LPG, and internet.
PAN Card Forms
In order to apply for a PAN card, an application form has to be filled out. There are two types of application forms – Form 49A and Form 49AA. Both the forms can be availed through both online and offline platforms.
The Cost of PAN Application
An individual can make an online application for his or her PAN card. This can be done through the Protean eGov Technologies Limited website (formerly NSDL) or the UTITSL portal. The cost of application for PAN can be summed as follows:
- For Indian communication address: Rs.93 (excluding GST)
- For foreign communication address: Rs.864 (excluding GST)
How to make Changes or corrections in PAN Card
Given below are the steps you will have to follow if you wish to make changes or correction to your Pan Card online:
Step 1:You can visit the Protean eGov Technologies Limited website (formerly NSDL) and under ‘Services’, click on PAN.
Step 2:Scroll down and under ‘Change/Correction in PAN Data’, click on ‘Apply’.
Step 3:Under ‘Application Type’, select ‘Changes/Correction in PAN Data’.
Step 4:Enter the other details, and click on Submit’.
Step 5:You will get a token number which you can use later for tracking purposes.
Step 6:Continue to the application form where you will have to state the changes or correction in PAN Card. Provide the new details and make a payment of Rs.93 and submit the form.
Step 7:You will have to send the required documents as proof via post to Protean eGov Technologies Limited. The documents you will most likely have to submit will be proof of address, proof of identity, and the proof of document showing the change you wish to make in your PAN Card.
Step 8:Your application form will be processed and if the documents submitted by you are correct, those changes will be incorporated in your PAN Card.
Step 9:Once those changes are incorporated, the new PAN Card will be dispatched to your communication address which you will receive within 15 days.
