PAN Application

PAN Application

The Permanent Account Number (PAN) is a ten-digit alphanumeric identifier issued by the Indian Income Tax Department under the supervision of the Central Board of Direct Taxes (CBDT). It serves as a key tool for tracking financial transactions that might have a taxable component, thereby preventing tax evasion. The structure of a PAN is designed to provide specific information about the individual holde

HERE’S A BREAKDOWN OF HOW THE PAN IS STRUCTURED

First five characters:These are alphabetic and typically represent a code which includes components like the series running at the time of PAN issuance and the issuing authority's identifier.

Next four numerals:hese are sequential numbers running from 0001 to 9999, serving as a unique identifier for the PAN holder within a given series.

Last character:This is an alphabetic check digit.

In India, having a PAN is mandatory for a wide range of activities such as opening a bank account, receiving taxable salary or professional fees, sale or purchase of assets above specified limits, and many more. Essentially, the PAN is an essential requirement for all entities that have a financial transaction where tax implications are involved. The number helps the tax authorities link all transactions with the individual or entity making them, aiding in comprehensive financial documentation and tax compliance.

TYPES OF PAN APPLICATION

1. For Indian citizen (Form 49AB)
2. For Foreign Citizen (Form 49AA)
3. Changes or Correction in PAN/ Reprint of PAN card

DOCUMENTS/DETAILS REQUIRED (APPLYING PAN FOR INDIVIDUAL)

1. ADHAAR CARD
2. ADDRESS PROOF
3. E-MAIL ID
4. MOBILE NUMBER

DOCUMENTS/DETAILS REQUIRED FOR PARTNERSHIP FIRM

Offline documents should be submitted to the NSDL department with acknowledge form signed by all partners

1. Notarized Partnership deed
2. (self-attested) KYC of the partners
3. Acknowledgement Form

DOCUMENTS/DETAILS REQUIRED FOR BODY INCORPORATE

1. Offline documents shoold be submitted to the NSDL department with acknowledge form signed by all directors
2. Copy of Certificate of incorporation.
3. Copy of Memorandum and Articles of Association.
4. Board resolution of the existing company authorizing for shareholding in the proposed company.
5. Coy of PAN Card of Company, in case, the Subscriber Company is registered in India.
6. Registered email-Id and mobile number.
7. address proof of registered office.

PROCESS FOR APPLYING PAN CARD

1. Choose an Agency: Apply for a PAN Card through either NSDL or UTIITSL, both authorized by the central government.
2. Select Application Type:On the portal, select the appropriate application type for which you want to apply.
3. Enter Details:Fill in your personal information, communication details, and other relevant data. You will receive an acknowledgment number on your registered email, which can be used to track and continue your application.
4. Document Submission:Choose the mode of document submission based on your application type.

   (i).Individual:Submit documents online.

   (ii).Partnership Firm, Body Incorporated, HUF, or Others:Courier physical documents to the NSDL department.

5. Pay Application Fees:Pay the application fees as per the fee structure provided by the department through NEFT.
6. Download Acknowledgment Form:After payment, download the acknowledgment form, which is password protected.

(i).Individual:The password is the applicant's date of birth as filled in the form.

(ii).Company: The password is the date of incorporation.

7. Receive PAN Card:Your physical PAN Card will be couriered to the submitted address within 15 days from the date of application.
8. Track Application Status:Track the status of your PAN Card using the acknowledgment number on the NSDL and UTIITSL websites.

FEES STRUCTURE FOR PAN CARD APPLICATION:

HOW TO MAKE CORRECTIONS IN EXISTING PAN CARD:

1. Visit the Official Website

Go to the NSDL or UTIITSL website.

2. Select the Correct Form

Locate and select the form titled “Changes and Corrections in Existing PAN/Reprint of PAN Card.”

3. Fill Out the Form

Enter the necessary details in the form.

4. Upload Supporting Documents

Upload the necessary documents as proof for the changes or corrections you are requesting.

5. Pay the Fees

Pay the prescribed fees using net banking or other available payment methods.

6. Receive Acknowledgement Receipt

After submitting the form and completing the payment, an acknowledgement receipt will be generated.

These steps should help you successfully make changes or corrections to your existing PAN card.

WHAT IS E-PAN CARD ?

The e-PAN facility provided by NSDL allows individuals to download their e-PAN card after submitting a form. To access the e-PAN, the applicant must know their acknowledgment number or PAN number. Upon paying a fee of Rs. 50, the applicant can download their e-PAN.

This service is particularly useful for individuals who have lost their PAN card or need their PAN number urgently when there is a delay in courier delivery to their registered address.

BENEFITS OF PAN CARD

ITR RETURN FILING:All individuals and entities who are eligible for Income tax are expected to file their IT returns. A PAN card is necessary for filing of IT returns, and is the primary reason individuals, as well as other entities, apply for one.

IDENTITY PROOF:PAN card serves a valid identity proof. Other than voter card, Aadhaar card, PAN card is also accepted by all financial institutions and other organizations as an identity proof.

TAX DEDUCTIONS: One of the important reasons to get a PAN card is for taxation. If the entity or person has not linked the PAN number with his bank account, and the annual interest earnings on savings deposits are more than Rs. 10,000/- then the bank would deduct 30% TDS instead of 10%.

CLAIMING INCOME TAX REFUND:Many times, the TDS deducted from a taxpayer’s income is more than the actual tax that he is supposed to pay. In order to claim excess tax paid, taxpayer has to have a PAN linked to his bank account.

STARTING A BUSINESS:In order to start a business, a company or any other entity mandatorily needs to have a PAN registered in the name of its entity. Tax Registration Number (TRN) is needed for a business which is obtained only if the entity has a PAN.

PERSONS ELIGIBLE FOR PAN CARD

The minimum age for PAN card application is 18 years. Any person who meets the age criteria can apply for a PAN card

ADULT:Individual above 18 years old can apply for pan card using a valid Id proof

MINOR:Minor can also apply for the pan card, in this case guardians can fill the application form behalf of minor.

FOREIGN CITIZEN: An individual residing in India more than 182 days in a financial year or carrying out financial transaction are eligible for apply pan card.

ENTITIES:Entities like companies, firms, AOP, society, HUF, trust, Association, may also apply for pan card.

FAQs

Q1.What is PAN?

Ans.Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by an Assessing Officer of the Income Tax Department.
A typical PAN is AFRPP1595

Q2.What is the difference between a PAN Card and an e-PAN Card?

Ans.e-PAN is a digitally signed PAN card issued by the Income-tax department in electronic or digital format. The PAN is a ten-digit alphanumeric number assigned by the IT Department.

Q3.How can a company obtain its PAN card?

Ans.To obtain a company PAN card, the PAN card number is mentioned on the incorporation certificate of the company. Additionally, the company can apply for the physical PAN card by filling out Application Form 49(A).

Q4.What are the age criteria for applying PAN card?

Ans.An Applicant should be more than 18 years old apply for PAN CARD.

Q5.Can a person have more than one PAN?

Ans.Obtaining and possession more than one PAN is against the law.

Q6.Is father’s name compulsory for female (including married/divorced/widow) applicants?

Ans.It is mandatory for Individual applicants to provide father’s name in the PAN application (Form 49A). Female applicants, irrespective of marital status, should also give father’s name in the PAN application.

Q7.Who must have a PAN?

Ans.

• All existing assesses or taxpayers or persons who are required to furnish a return of income, even on behalf of others, must obtain PAN.
• Any person, who intends to enter into economic or financial transactions where quoting PAN is mandatory, must also obtain PAN.

Q8.Will the existing PAN cards issued by the Income- Tax Department remain valid?

Ans.All PAN allotted and PAN card issued by the Income Tax Department will remain valid. All persons who have been allotted a PAN need not apply again.