Any taxpayers in India can be identified using their PANs or Permanent Account Numbers. A 10-digit unique identification alphanumeric number called a PAN Card is given to Indians, primarily those who pay taxes.
Every Indian tax-paying entity is given a unique identification number by the PAN system of identification, which is a computer-based system. Using this technique, a person’s entire tax-related information is stored against a single PAN number, which is the primary key for information storage. Since this is shared throughout the nation, no two individuals on tax-paying entities may have the same PAN.
The Income Tax Department also issues PAN Cards when a PAN is assigned to an entity. PAN is a number, but PAN Card is an actual card containing your name, date of birth, father’s or spouse’s name, and a picture. You may provide copies of this card as identification or date-of-birth proof.
Contents
PAN Card Structure
The PAN (or PAN number) is an alpha-numeric, ten-character unique identification code.
The PAN is organized as follows:
The fourth character is [P—Person or Person]. For instance, AAAPZ1234C.
- The first five characters are letters, which are automatically capitalized. The following four characters are numbers, and the final (tenth) character is a letter.
- The code’s first three characters are three letters that form an alphabetical sequence going from AAA to ZZZ.
- The fourth character indicates the type of cardholder. Each type of holder is identified by a letter from the following list:
A — Association of Persons (AOP)
B — BOI (Body of People)
C – Company
F — Firm
G — Government.
H — Hindu Undivided Family (HUF)
L — Local government
J — Jurisdictional Artificial Person
P — Person (Alone)
T — Trust (AOP)
- The first character of either of these two is the fifth character of the PAN.
- In the case of a “personal” PAN card, where the fourth character is “P,” the first letter of the person’s first name, last name, or both,
- In the case of a company/HUF/firm/AOP/trust/BOI/local authority/artificial judicial person/government, where the fourth character is “C”, “H”, “F”, “A”, “T”, “B”, “L”, “J”, “G”.
- The final (tenth) character is an alphabetic digit that serves as a checksum to ensure that the current code is still valid.
Types of PAN Cards
Two categories of PAN applications exist:
- Application for PAN Allotment: This form should be used if the applicant has never requested a PAN or if one has not already been assigned to him.
Form 49AA is for foreign nationals to complete.
- People who already have a PAN but wish to apply for a new PAN card or/and make some changes or corrections to their PAN data must do so in the format required by ITD, which is as follows:
Request a new Pan Card, changes, or corrections to Pan Data. Both foreigners and citizens of India may use the same form (49A/49AA). In this situation, the applicant receives a new PAN card with the same PAN but updated data. - Pan allotment based on Aadhar is free of cost. The applicant will receive a pan pdf that has been generated. It has the same value as a physical pan card.
You can find the date assigned to your Pan card on the UTI website.
Why is a PAN Card Required?
PAN Cards are essential for taxpayers because they are required for all financial transactions and are used to track the inflow and outflow of your money. In addition, it is necessary to pay income taxes, receive tax refunds, and communicate with the Income Tax Department.
Individuals who do not have a PAN can use their Aadhaar number to file returns and for any other purpose where a PAN was previously required, according to the Indian Budget 2019. This means that if you have not yet linked your PAN to your Aadhaar, or if you do not have a PAN but have an Aadhaar, you do not need to link your PAN and Aadhaar or apply for a new Pan Card. However, the rules governing this are still being developed/updated/approved.
Nonetheless, PAN is still required for a large number of monetary transactions. The PAN Card also serves as identification. Some of the uses and benefits of having a PAN are listed below.
- Because the PAN Card contains information such as name, age, and photograph, it can be used as valid identity proof throughout the country.
- The PAN is the best way to keep track of your tax payments. Otherwise, because your tax payment cannot be verified, you may be required to pay it more than once.
- Because each entity’s PAN is unique, it is nearly impossible to use it for tax evasion or other nefarious purposes.
- You can use PAN Card to get utility services like electricity, phone, LPG, and internet.
Do You Qualify For A PAN Card?
The following taxpaying entities are required to have a Permanent Account Number under section 139A of the Income Tax Act:
- Any person who has paid income tax or who must do so to the Income Tax Department. The tax slabs will decide this.
- Anyone who runs a company or engages in a profession generates more than Rs. 5 lakh in annual revenue during any assessment year.
- Importers and exporters who are required by the Income Tax Act or any other applicable law to pay any kind of tax or duty charge
- Trusts, charities, and associations of all kinds.
All tax-paying entities must apply for a PAN, including minors, individuals, HUFs, partnerships, corporations, groups of individuals, trusts, and others.
How To Apply For PAN Card?
Similar to getting a passport, driver’s license, Aadhaar, etc., getting a PAN is optional or voluntary. However, you must use it to conduct high-value financial transactions, among other things.
To apply for a PAN, submit the paperwork to the district’s authorized PAN agency in person or online through UTI, along with two passport-size color photos, identification documentation, proof of address, and dates of birth. A photocopy of the previous PAN is also necessary). Receiving the card typically takes 10 to 15 days. E-KYC submissions can be made by users who have Aadhaar cards.
For the sake of economy, efficiency, and effectiveness, the Passport Seva Kendra (PSK) public-private partnership (PPP) model is used for PAN issuance, verification, delivery, and maintenance. Accordingly, the Income Tax Department has entrusted the processing of applications, gathering, handling, and verifying personal documents like proof of ID, age, and address, clarification with the applicants, printing the card and the letter and mailing it to the managed service providers, including NSDL e-Governance Infrastructure Limited (formerly National Securities Depository Limited) and UTI Infrastructure Technology Services Limited (UTIITSL).
After the application documents have been successfully processed, the processing agencies can access the new PAN number online from the server of the income tax department. The handling, processing, and delivery of individual identification cards and financial documents by private contractors may be criticized by some Indian critics as a breach of privacy.
The TIN website contains information about NSDL e-Gov centers. Applying online with an Aadhaar-based eSignature is accessible on the NSDL e-Gov website. The candidate is given a token number after registration. One can keep filling out the form. By logging in with their registered details, the applicant can save the information and complete the form whenever conveniently.
Aadhaar and OTP can be used to electronically sign the application after uploading a photo or signature and any supporting documents.
One can download and save a copy of the signed form for his records after successfully signing in. In addition, you can find UTIITSL centers on its website, where you can download an acknowledgment receipt and application form.
PAN Card Transaction Tracking
The government recently unveiled a program to monitor transactions using a PAN card to determine taxes owed. The Income Tax Department will be able to keep track of every transaction where you use a specific PAN number thanks to the ITBAN-PAN, also known as the Income Tax Business Application-Permanent Account Number.
- You can use the software to track every financial transaction, including mergers, acquisitions, liquidations, PAN amalgamations, and dissolution information, where a specific PAN card is mentioned.
- The entire database of PAN information, as well as all previously collected PAN data, have been transferred to this software.
Application Fee For PAN Card
PAN card applications can be submitted online by an individual. You can use the UTITSL portal or the Protean eGov Technologies Limited website (previously NSDL). Following is an overall breakdown of the PAN application fee:
- Rs. 93 (exclusive of GST) for communication with an Indian address.
- Address for international correspondence: Rs. 864 (before GST).
Documents Required For PAN Card Application
You must submit several documents, including Form 49A or 49AA, to apply for a PAN Card. The list of paperwork you must provide when requesting a PAN Card is provided below:
Applicants who are solely on their own
- Aadhaar, a voter ID, a driver’s license, etc., are examples of identity proof.
- Utility bills, water bills, bank account statements, credit card statements, passports, driving licenses, government-issued domicile certificates, marriage certificates, matriculation certificates, etc., are all acceptable forms of proof of address.
You are a member of a Hindu Undivided Family (HUF).
- You must present an affidavit signed by the HUF’s Karta. You must state every co-signers father’s name, address, and name in full on the affidavit.
- You must provide identification, address, and date of birth proof if you are a member of a HUF and are applying for a PAN Card on your own.
For businesses with Indian registrations
- You must submit a copy of the Registration Certificate to the Registrar of Companies.
Limited Liability Partnerships and Companies registered or established in India.
- You must submit a copy of the Registration Certificate that the Registrar of Companies issued.
- You must submit a copy of the Partnership Deed.
For trusts established or incorporated in India
- You must submit a copy of the Registration Certificate Number issued by a Charity Commissioner.
Regarding a Group of People
- Any document issued by the Central or State Government that expressly states your address and identity, such as an Agreement Copy or Registration Number Certificate from the Registrar of Co-operative Societies or Charity Commissioner, is acceptable.
PAN Card Status Inquiry
- After submitting your application for a PAN Card, you can check its status online.
- You can find out whether the card has been issued or is in transit by checking the application status.
- On the websites of UTIITSL or TIN-Protean eGov Technologies Limited, you can check the status of your PAN Card application.
- Your name and date of birth are required to check the status of your PAN Card application on the website.