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PAN Card- What is PAN, How to apply Pan card online
The deadline for linking Aadhaar with PAN has been extended to 30 June 2023. Also, individuals will have to pay a fine of Rs 1000 as a late fee for linking their PAN with their Aadhaar. Non-compliance on this will result in the PAN becoming inoperative from July 1st, 2023. Link here.
What is a PAN Card?
A PAN card (Permanent Account Number) is a unique 10-character alphanumeric digit issued by the Income Tax Department of India to individuals, companies, HUF and other entities. It is used for tracking financial transactions and to help prevent tax evasion. The PAN card includes basic personal details like:-
- Your Full Name
- Photograph of the cardholder
- Father's Name (Mother's name in case of a single parent)
- Date of Birth
- PAN Number
- Your Signature
Through your PAN number, the Income Tax Department keeps an eye on all your transactions that require your PAN Card, like depositing money in your Fixed deposit account over Rs 50,000 once, buying, selling, or renting a property in India, etc. The PAN card is also required for opening a new bank account, filing income tax returns, and to conduct financial transactions above a certain limit. The PAN card is valid for lifetime and is unique to each individual, company, HUF or other entity that holds it.
What is the significance of the 4th letter in the PAN card number?
The 4th letter stands for any of the following:-
- "P" for Person,
- "C" for Company,
- "H" for Hindu Undivided Family (HUF)
- "A" for Association of Persons (AOP)
- "B" for Body of Individuals (BOI)
- "G" for Government
- "J" for Artificial Juridical Person
- "L" for Local Authority
- "E" for Limited Liability Partnership
- "F" for Firm
- "T" for Trust
How does the 5th digit depict the last name of the holder?
In the case of an individual, the 5th digit is the first letter of the last name/surname. For example, if Ms. Tania Gupta applied for a PAN, then the 5th digit of her PAN will be "G."
But, in the case of a non-individual, the 5th digit shall denote the first character of the PAN holder's name. Let's say Tania Limited applied for a PAN; then the 5th digit of the unique number allotted to it will be "T."
Who is eligible to apply for a PAN card?
Individuals, companies, non-resident Indians, or anyone in India are eligible to apply for a PAN card.
What is the importance of a PAN Card?
PAN number creates your identity in front of the Income Tax Department. The department identifies you with a 10-digit number mentioned on your PAN Card. From filing returns to paying taxes to get refunds and for all the communications with the Income Tax Department, PAN is a prerequisite. The Income Tax Department mandates you to have PAN Card in the following circumstances-
- When you are liable to pay income tax, i.e., if your income exceeds Rs. 2,50,000/- in a financial year;
- When TDS is deducted from your income;
- Where you are a professional or businessman and your gross receipts exceed Rs. 5 lakhs in a year;
- Where you are an importer or exporter, who is required to obtain Import Export Code;
- Where you are a charitable trust who is required to furnish return under Section 139(4A); and
- When you intend to enter into any specified financial transactions in which quoting of PAN is mandatory
Well, not only the Income Tax Department but other institutions also require quoting of pan mandatorily in the following specified transactions:
- A New Bank Account;
- A new DEMAT Account
2. Applying for:
- A credit card or debit card;
3. Payments to:
- Life insurance premium when the total amount paid during the year exceeds Rs.50000
- Mutual fund/company / RBI for acquiring units/debentures/bonds issued by it when the total amount paid during the year exceeds Rs.50000.
4. Sale or purchase of
- Immovable property for an amount exceeding Rs. 10,00,000
- Securities or shares for an amount exceeding Rs. 1 lakh per transaction;
- Motor vehicle or vehicle other than two-wheeled vehicles (inclusive of any detachable side-car having an extra wheel);
- Goods and services of any nature other than those mentioned above for an amount exceeding Rs. 2 lakhs per transaction.
5. Time deposits with a banking company, post office, Nidhi Company or any NBFC of the amount exceeding Rs. 50,000 in a day or Rs. 5 lakhs in a year
6. Payments in cash:
- To hotels and restaurants for bills exceeding Rs. 50,000;
- For purchase of bank drafts / pay orders/banker's cheques from a banking company or a co-operative bank an amount exceeding Rs. 50,000 during a day
7. A cash deposit of Rs. 50,000 or more with any bank during one day;
8. Payment for travel to any foreign country or purchase of foreign currency for an amount exceeding Rs. 50,000;
What is the importance of a PAN Card for a non-resident individual?
- Applying for a credit card or debit card;
- Payments in cash to hotels and restaurants for bills exceeding Rs. 50,000;
- Payment in connection with travel to any foreign country or for purchase of foreign currency for an amount exceeding Rs. 50,000;
- Payment in cash for an amount exceeding Rs. 50,000 during any one day for the purchase of bank drafts / pay orders / banker's cheques from a banking company or a co-operative bank;
- Payment of an amount exceeding Rs. 50,000/- to RBI for acquiring the bonds issued by it;
- Sale or purchase of goods and services of any nature other than those mentioned above exceeding an amount of Rs. 2 lakhs per transaction;
- Payment in cash or by way of a bank draft / pay order/banker's cheque of an amount exceeding Rs. 50,000 in a financial year for one or more pre-paid
- payment instruments issued by RBI to a banking company or a co-operative bank or to any other company or institution.
How to apply for a PAN?
Steps to apply for a PAN card online via the NSDL website:-
- On the official website of NSDL, select the PAN card application- - 'New PAN Indian Citizen (Form 49A)'
- Fill in the required personal and contact details such as name, address, phone number, email ID, etc.
- Pay the application fee through credit/debit card, demand draft, or net banking. An acknowledgment will be displayed once the payment is successful. You will receive the same via email id too.
- Send the required documents through courier/post to the NSDL office, in Pune. Once the documents are received, the PAN application would be processed by NSDL. Once the NSDL verifies the application and documents, it will issue the PAN card in 15 days.
Steps to apply for PAN card online via UTIITSL website:-
- Fill the PAN card application available on the website.
- Pay the application fee. An acknowledgment will be displayed, once the payment is successful. It will also be sent to your email ID.
- Send the documents to the UTIITSL office by courier within 15 days of online submission of Form 49A.
- The UTIITSL will process the application and documents and issue the PAN card within 15 days.
- Download Form 49A or 49AA from the official website of NSDL or UTI or collect a physical copy from any authorized PAN agency.
- Fill in the form with the required personal and contact details.
- Attach the necessary documents, including proof of identity, address, and date of birth.
- Pay the application fee through demand draft or by cash (at authorized PAN agencies only).
- Submit the application form along with the documents and fee at any authorized PAN agency or send it by post to the nearest NSDL or UTI office.
- Note down the acknowledgment number given by the authorized agency for future reference.
After applying for a PAN card, you can track the status of your application online through the NSDL or UTI website by using the acknowledgment number. It typically takes around 15 to 20 days to receive your PAN card.
Furthermore, the Finance Minister had officially launched the "Instant PAN" facility. It is now possible to get an instant PAN card by quoting your Aadhaar number in just a few minutes. This facility can be availed free of cost. Read more here.
Types of PAN Card forms
People can apply for a PAN card by filling out Form 49A or Form 49AA.
- Form 49A – Application for allotment of PAN to be filled by the Indian citizens / Application of request for new PAN Card or/and changes or corrections in PAN
- Form 49AA - Application for allotment of PAN to be filled by foreign citizens.
In the case of a company that has not been registered under the Companies Act, 2013, the application for allotment of Permanent Account Number (PAN) may be made in FormNo.INC-7 specified u/s 7(1) of the said Act for company incorporation.
I applied for a PAN some time ago and haven't received it yet; what to do?
In any such case, where you have applied for a PAN card and wondering where it is, simply just track the status of your PAN card with the help of the acknowledgment number issued at the time of applying for a PAN or consult our experts.
Can I have two PAN cards?
No if you have more than one PAN, surrender it immediately to the income tax department. A penalty of Rs. 10,000 can be imposed or legal action can be taken in such a case.
Can I apply for a PAN on behalf of someone else?
Yes, you can apply for a PAN on behalf of the following persons:
- A minor
- A lunatic or mentally unstable person;
- A deceased person; or
- Such other persons who are required to be represented by an Authorized Representative.
I have lost my PAN card, how to get it re-issued?
In case you have lost your PAN card, you need to apply for re-issuing or re-printing of your PAN card by submitting a valid ID, address, and DOB proof along with an attested photocopy of the old PAN card. Remember, do not apply for a new PAN card altogether.
Also, if you think it’s a long and tedious process, you can easily apply for a duplicate PAN card. Applicants can ask for a duplicate copy in a virtual or a physical form from the Income Tax department, as they are responsible for issuing PAN cards. Read more here.
How to correct any mistake or change any data on my PAN card?
A request for re-issue of a PAN Card is to be filled in by selecting the appropriate box on the left margin of the application form named “Request for New PAN Card or/ and Changes or Correction in PAN Data” along with the correct documents as proof.
What happens in case of any contravention relating to PAN?
In case, if you contravene any provision relating to Section 139A i.e. PAN, then you will be liable for a penalty amounting to Rs. 10,000/- per default u/s 272B of the Income Tax Act, 1961. The contraventions can be any of the following:
- Not obtaining a PAN when you are liable to obtain one;
- Knowingly quoting an incorrect PAN in any documents;
- Intimating an incorrect PAN to the person who is liable to deduct tax at source (TDS);
- Intimating an incorrect PAN to the person who is liable to collect tax at source (TCS);
- Obtaining two PAN's.
Frequently Asked Questions
Q- How can I download a PAN card?
You can download a PAN card soft copy (e-PAN card) through the NSDL portal with your Acknowledgement number as well as your PAN and date of birth
Q- How can I contact NSDL?
You can find the contact details here.
Q- Can we get PAN Card for minors?
ITR filing is mandatory for all including minors. And when the income of the minor child exceeds Rs 2,50,000, which is chargeable to Income Tax, he cannot quote PAN of his parents or guardian and will be required to have his own PAN card. The Income Tax (IT) department has not mentioned any age limit to apply for a PAN card. Thus, even minors are eligible to apply for a PAN card.
Q- What does 1st letter in PAN stands for?
The first three characters of PAN are alphabetic series between AAA to ZZZ. For instance, the beginning of your PAN could be BSN or AOZ; it is selected randomly.
Q- What does the 10th letter in the PAN card stand for?
The 10th letter in the PAN is the alphabetic check digit, and it is generated through a formula of other numbers.
Q- Is PAN id different from other ID proofs?
Yes, totally. Other ID proofs such as Aadhaar Number Cards, Driving License, Passport, etc., are issued to only Indian citizens. At the same time, a PAN card can be issued to non-citizens/foreigners too who have dealt in specified transactions stated above, as it is not proof of Indian Citizenship.
Q- Does the PAN card have a phone number?
No mobile number is not mentioned on the face of the PAN card. However, if you want to update the mobile number registered with the department, you can do so by logging into your account on the income tax website.
Q- How can I check my PAN card details?
Log onto the Income Tax Department e-Filing website. Click on the 'Verify Your PAN details 'hyperlink from the 'Quick Links' Section. Enter the PAN, Full Name (As per PAN), and Date of Birth, and Choose the 'Status' as applicable. Enter the Captcha as in the image and click on 'Submit' to verify your PAN details.
Q- How can I retrieve my PAN number?
If you want to know your Permanent Account Number (PAN) after the card is lost, the best thing to do is visit https://www.incometax.gov.in/iec/foportal/. Click on ‘Know Your PAN’. Fill in the details asked for. Click on ‘Submit.’ Enter the OTP sent on the mobile number. Click on ‘Validate’, and then the screen will appear with all the details required.
Q- Will PAN cards become non-operational after the option to use Aadhaar for filing ITR?
The option to interchangeably use Aadhaar and PAN card for filing Income Tax Return is just an additional facility. It will facilitate those who do not have PAN cards but are willing/liable to file ITR. This new provision in no way will replace a PAN card with Aadhaar. Instead, the income tax department will suo moto (without receiving the application from the assessee) issue a PAN card in such cases.
Q- Is it legal to have two PAN cards?
As per the Income Tax law, holding two PAN is not allowed. Therefore, if you are holding Two PAN, you must surrender one PAN. PAN can be surrendered online or offline. Also, you must write a letter to your assessing officer regarding the surrender of the PAN.
Q- My address has changed, do I need to apply for a new PAN card?
No. A change in address is just a change in your jurisdiction and assessing officer, and no application for a new PAN is required in such a case. Only the change in address must be intimated to the income tax department for successful updation of their database for future correspondence.
Q- I am not a citizen of India, is the procedure for applying for PAN different for me?
No, the procedure for applying for a PAN is the same for every individual, whether an Indian citizen or a Foreign citizen. The only difference being Form 49AA is to be filled and submitted through an authorized representative at any authorized PAN center instead of Form 49A. However, you may find the online mode of application easier and more convenient, which provides for online payment of fees using various options.