PAN Card Features
| PAN | Permanent Account Number |
| Issued By | Income Tax Department |
| Valid for | Lifetime |
| PAN Card Apply | Online and Offline |
| PAN Card Application Online | NSDL Official Website |
| PAN Card Fees | ₹ 93 + GST |
| PAN- Aadhaar Linking Deadline | 31st March 2021 |
PAN Card
PAN stands for Permanent Account Number. The PAN number is a ten-digit number that is made up of alphabets and numerical, also called ‘alphanumeric’ terms. It is allocated by the income tax department to all the taxpayers. Every individual has a unique ID. A PAN number helps the government authorities keep track of all the financial activities of any individual. This is because PAN is important for all forms of payments. A PAN number is allotted to an individual in a laminated card, and that is called a PAN card. A PAN card contains information such as the PAN number, Name, DOB, and address.
Online PAN Card Application
To get a PAN card, taxpayers can enroll themselves online without having to leave their homes. A PAN card can be made online through the following steps:
After the form has been properly filled up, the PAN card will be delivered to the submitted address within 15 days.
PAN Card Eligibility
According to the clauses in the Income Tax Act, any Indian resident under the following categories are eligible for a PAN Card registration:
Types of PAN Card
Types of PAN cards vary depending upon the taxpayer for whom it is made. Various types of PAN card are listed as follows:
PAN Card Documents Required
To enroll for a PAN card, certain documents are required, irrespective of whether the application is made online or offline. These include Address or Identity proofs such as Voter ID card, Passport, Aadhaar Card, or Driving License.
| Proof Of Identity | Proof Of Address | Proof Of Date Of Birth |
|---|---|---|
| Aadhaar Card | Aadhaar Card | Aadhaar Card |
| Voter ID card | Voter ID card | Voter ID card |
| Driving License | Driving License | Driving License |
| Passport | Passport | Passport |
| Ration card | Post office passbook | Matriculation certificate |
| Photo identity card issued by the Central Government or State Government | Post office passbook having an address of the applicant; or | Birth certificate |
| Pensioner card | Latest property tax assessment | Photo identity card issued by the Central Government or State Government. |
| Domicile certificate | Domicile certificate |
Additional Documents Required
How to update/edit PAN details?
You can edit or update PAN card details in many situations if there is any wrong information on the card. To update changes such as an address change. You can update the details by visiting the online portal and following the below-mentioned steps:
PAN Card Correction Online
PAN Card details can be updated online through the following means:
Do’s and Don’ts for Filling up PAN Card Correction Form
You have to keep the following things in mind while filling up the PAN card correction form:
Lost PAN Card
At times, a PAN card gets lost or is misplaced. However, it is not something that one should worry about. In case of a lost PAN card, one can get a duplicate PAN card online. To apply for one, you just need to visit the official website and fill the PAN card form 49-A. Following the successful completion and payment of the fee, a duplicate PAN card is delivered within 45 days.
Tracking PAN Applications and Transactions
The Government enabled tracking of the financial transactions through PAN numbers. This has been done through the Income Tax Business Application (ITBA) software. Applications and transactions can be traced on the PAN card official website or NDSL website.
Uses of PAN in Financial Transactions
- A 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.
- Many 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 for 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 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 the purchase of jewelry and bullion
- To remit money out of India
- Transfer of funds from NRE to NRO account
General Uses/Advantages of Having PAN
- Since a PAN card contains important 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.
- Due to PAN being unique for every entity, its misuse is almost impossible for purposes of tax evasion or other means.
- PAN Card can be used to use any utility connections such as electricity, telephone, LPG, and internet.
What happens if you don’t have PAN Card?
If your income falls under the taxable bracket, not having a PAN card would result in:
- A flat 30% tax on your earnings and wealth, as decided by the Income Tax Department of India.
- Not being able to purchase a motor vehicle, buy any immovable property worth over Rs. 10 lakh, or open a bank account.
- Businesses are unable to conduct a large chunk of their financial activities.
The Cost of PAN Application
An individual can make an online application for his or her PAN card easily. This can be done through the NSDL website or the UTITSL portal. The cost of application for PAN is:
- For Indian communication address: Rs.93 (excluding GST)
- For foreign communication address: Rs.864 (excluding GST)
Structure of PAN Card
A PAN card contains important information such as name, father’s name, address, date of birth, signature, photograph, and PAN number. However, there is a format that is followed in the allotment of a PAN number. The PAN card number is a ten-digit alphanumeric figure; thus, it contains both numbers and alphabets. The first three letters of the ten-digit are alphabets; the fourth letter is the category under which the taxpayer is categorized. The letter P is allocated to individual taxpayers, F to firms, C to companies, and L to the local authority. Further, the fifth letter is the initial of the card holder’s surname. Out of the remaining five letters, the first four are numerics, while the last letter is an alphabet.
Old PAN Series
Despite these changes, the first avatar of the PAN card met with some difficulties, as mentioned below:
- There were no records of the PAN number allotted.
- The data that was stored for a PAN holder is not structured well. It also captures detailed information.
- The PAN number was not a permanent one.
New PAN Series
In 1995, under an amended section 139A of the Income Tax Act, the new series of PAN was introduced by the Income Tax Department. The new PAN series allowed the following points:
- Linking all tax-related information, current, and past, to a single identification number.
- Easy retrieval of information from the central database.
- Matching all financial information mapped against a single PAN.
PAN Card for e-KYC (Know Your Customer)
KYC or ‘Know Your Customer’ is the e-KYC process that recently launched and has become a mandate for various operations related to finances such as banking. This is due to the e-KYC process being quick, economical, safe, and pocket-friendly. Further, to add more to the authenticity of KYC, and to get all information regarding the identity and address of people, linking PAN with Aadhaar Card has been made compulsory for the e-KYC process.
Know More About PAN Card
- PAN Customer Care
- How to Change PAN Card Photo & Signature
- PAN Verification
PAN Card Loan
PAN Card is one of the most essential documents that serve as an identification proof for conducting financial transactions. Most of the lenders such as banks & non-banking financial institutions, require you to submit PAN Cards to get any loan such as a personal loan, home loan, loan against property, or gold loan. Not having a PAN Card can make it challenging to get more loans.
Benefits of PAN Card
You can use your PAN for e-KYC. e-KYC is a major requirement that is asked for by many service providers. Some of the benefits of the PAN e-KYC are as follows:
1) Quick processing: With the help of PAN e-KYC, you can share information with a service provider within a few minutes. This makes the process quicker.
2) Hassle-free: It is a paperless process, so, the PAN e-KYC enables hassle-free management.
3) Authorisation: The data which is shared through PAN e-KYC is authentic. This data is legal and is also nationally acceptable for the parties who are involved in the transaction.
4) Secured data: The data transferred between the cardholder and the service provider cannot tamper as they are transferred through secure channels only. In addition to that, the data cannot be used without the consent of both the parties.
Who Issues PAN Card?
PAN Card is issued by the Income Tax Department who is helped by authorized district-level PAN agencies, UTI ITSL (UTI Infrastructure Technology And Services Limited), and NSDL (National Securities Depository Limited). There are several TIN-Facilitation Centres and PAN centers across the country, run by NSDL that help citizens get their PAN Card.
The process of issuing a PAN Card works on the PPP (Public-Private Partnership) model. This is done to maintain the economy, efficiency, and effectiveness of managing, processing, and issuing PAN applications.
List Of Pan Card Office in India 2021
- Pan card office in Chennai
- Pan card office in Bangalore
- Pan card office in Pune
- Pan card office in Delhi
- Pan card office in Mumbai
- Pan card office in Hyderabad
- Pan card office in Kolkata
- Pan card office in Patna
- Pan card office in Gurgaon
- Pan card office in Coimbatore
How is PAN Allotted?
- Once you submit your PAN application with the filled-up form and supporting documents, the PAN Centre will verify it against the original documents.
- For the online process, you need to submit the form online and then send certain self-attested photocopies of the documents to NSDL, Pune.
- Assessing Officers assess the application details. Your details will be cross-verified against the details of existing PAN Cardholders in the central database.
- In case there is no record of a previous PAN allotted to you, then the request is accepted and processed. A PAN is allotted to you as per your taxpayer classification.
What do the Alphabets and Numbers on your PAN Card Mean?
Your Permanent Account Number is not a series of random numbers and letters as most people believe. The structure of PAN is in fact quite interesting. Here’s what each component of PAN means:
- First Three Characters: These are a sequence of alphabets from AAA to ZZZ.
- Fourth Character: The fourth character signifies the type of taxpayer that you are.
- A – Association of Persons (AOP)
- B – Body of Individuals (BOI)
- C – Company
- F – Firm/Limited Liability Partnership
- G – Government Agency
- H – HUF (Hindu Undivided Family)
- L – Local Authority
- J – Artificial Judicial Person
- P – Individual
- T – Trust
- Fifth Character: The fifth character in PAN is the first letter of your surname.
- Sixth to Ninth Characters: This is from a sequence of numbers between 0001 and 9999.
- Last Characters: This is an alphabet check letter.
History of PAN in India
Before the concept of PAN was introduced by the government, there was a GIR number assigned to taxpayers. This is a manual system that is unique only within a ward or under a particular assessing officer. However, the number was not unique at the country level.
The GIR number was allotted by the Assessing Officer to a taxpayer and it usually 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. It was initially a voluntary process, but PAN was made mandatory for all tax-paying individuals in 1976.
The initial PAN number allotments were made manually. To avoid duplication, each ward/circle received a certain set of numbers. This series was abandoned in the year 1995.
Concepts Similar to PAN Card
The concept of PAN, or a unique number assigned to every tax-paying entity, is not new. In fact, several similar utilities are used for tax purposes.
TAN (Tax Deduction and Collection Account Number) – This is a unique 10-digit number that has been issued to individuals and entities who have to collect or deduct tax on payments made as part of the tax that is deducted under the Income Tax Act. TAN has to be quoted when one is applying for TDS or Tax Collected at Source (TCS) challans made to disburse the refund as well as on certificates.
TIN (Taxpayer Identification Number) – the TIN is a unique 11-digit number that is used to identify dealers who are registered under Value Added Tax. Allotted by individual states, it is compulsory for all manufacturers, traders, and dealers to register for a TIN. This number is to be quoted while generating invoices, orders, or quotations. It is also used to identify assesses under the Income-tax Act of 1961.
FAQs
✅ Where do I get the PAN application form?
The PAN application form is available at any NSDL TIN Facilitation Centre (TIN-FC) or PAN Centre. Certain stationery vendors also provide the form to applicants. Alternatively, you can download the form from the NSDL-TIN website: https://www.tin-nsdl.com/downloads/pan/downloads-pan.html
✅ To procure a PAN Card, can I write an application on plain paper?
No, it is not possible to apply for PAN Card through a handwritten application. The application is only accepted in the format notified by the Central Board of Direct Taxes. The forms about the same are:
For Indian citizens, Form 49A
For foreign citizens, Form 49AA
✅ How should I fill the PAN application form?
The application form for PAN Card should be filled legibly in English. You should use capital letters and black ink (preferably) to update details. Make sure that you read all instructions carefully before filling up the form.
✅ Is it necessary to include the father’s name in the application form for a married female/widow/divorced?
All-female applicants should include only their father’s name in the PAN application form, irrespective of their marital status. The form does not need to be updated with the husband’s name.
✅ Is it necessary to furnish 2 photos for the application?
Yes, if you are an individual applicant, you should affix 2 recent color photos with white background in the form. The size of the photos should be 3.5 cm x 2.5 cm. The photographs should not be clipped or stapled to the form. The applicant is required to sign across the photograph such that a part of the sign is on the photo and the rest is on the form. The image clarity on the PAN Card will depend on the clarity and quality of the photograph that you affix on the application form.
✅ Should I mention my email ID or telephone number on the form?
It is mandated for all applicants to provide either their email ID or telephone number in the PAN application form so that they can be contacted in the event of a discrepancy. It is also useful when the applicant receives the PAN through email.
If the landline number of the applicant is provided, the country code and STD code should be mentioned. If the mobile number is given, the country code should be stated.
If the email ID of the applicant is furnished, the PAN will be sent to him/her through email.
✅ What is the application process for individuals who do not know how to sign?
In such a scenario, the left-hand thumb impression of the applicant can be provided at the place meant for the signature in the PAN application form. This should further be attested by a Notary Public, a Gazetted officer, or a Magistrate with an official stamp and seal.
✅ Are there any charges that I would have to pay for the PAN Card application form?
No, the form is available free of any charges.
✅ When I submit Form 49A for PAN Card, what are the charges that I have to bear?
If your address is within India, then the PAN Card processing fee is Rs.110, i.e., Rs.93 (application fee) + 18% GST.
If your address is outside India, the PAN Card processing fee is Rs.1,020, i.e., Rs.93 (application fee) + Rs.771 (dispatch charges) + 18% GST.
✅ Where should the PAN Card application form be submitted?
The PAN Card application form, once duly filled in and self-attested, can be submitted along with all relevant documents to any one of the PAN Centres or TIN-FCs that are managed by NSDL e-Gov.
If you have submitted a PAN Card application online, you should take a printout of the application form, sign it and affix a recent photograph. Then you should send this form along with supporting documentation to the address below:
Income Tax PAN Services Unit
(Managed by NSDL e-Governance Infrastructure Limited)
5th Floor, Mantri Sterling, Plot No. 341,
Survey No. 997/8, Model Colony,
Near Deep Bungalow Chowk,
Pune – 411 016
✅ Will I get an acknowledgment when I submit my PAN application form at a TIN-FC?
Yes, you will receive an acknowledgment that contains a unique 15-digit number.
✅ How can I change the photograph on my PAN Card?
If the photo on your PAN Card is unclear, then you can get the PAN Card replaced with a photograph of better quality and clarity. This facility is available as part of ‘Correction of PAN Card’ requests. This request is similar to that for the name change and change in date of birth. You can visit the website, https://tin.tin.nsdl.com/pan/ and fill up the ‘PAN card change request form’. The relevant documents should be sent to the address mentioned in the form.