Every taxpayer in the country is asked at least one specific detail when filing their tax return – what is his/her PAN number? PAN, which stands for Permanent Account Number, is a unique number allotted to every individual who applies for it. The card which is issued containing the number and identity details of the individual is called the PAN Card. The PAN card number is a mandatory requirement for filing tax returns and also for making financial investments. The PAN number search identifies the individual for taxation purposes and it contains all the relevant financial data of the individual in its storage. How often have you been asked to submit your PAN details? Common examples are when you open a bank account, when you file your tax, when investing in any financial instrument or conducting any finance related activity. Knowing your PAN number is therefore a priority for many aspects of your financial life. So, let us figure out the complete details of this all-too-important card.
What is the PAN Card? Know your PAN card
A PAN card is a card issued under the Income Tax Act, 1961 and it contains a unique 10-digit alphanumeric code. This code is computer-generated and is unique to the holder of the card.
Who can avail a PAN Card?
The PAN Card is not only issued to individuals. Companies and partnership firms can also avail a PAN Card and it becomes mandatory for such entities to have a PAN number when they are filing their income tax returns. Even in case of individuals, minors, students and Non-Resident Indians can also apply PAN Card online.
A PAN card contains some very basic information which also qualifies it as an identity and an age proof when complying with the Know Your Customer (KYC) guidelines. The details contained in the card are as follows:
- Name of the cardholder – the primary and the most noticeable detail on the PAN Card is the name of the cardholder. In case of an individual, it is the individual’s name, in case of a company, the registered name of the company and in case of a partnership firm, the name of the firm is mentioned on the PAN Card.
- Name of the father of the cardholder – this is applicable in case of individual cardholders. The name of the father of the cardholder is mentioned beneath the name of the individual.
- Date of birth – the cardholder’s date of birth is mentioned beneath the name of the father in case of an individual’s PAN card. This detail acts as the date of birth proof of the cardholder. In case of companies and partnership firms, their date of registration is mentioned in this field.
- PAN Number – the next and the most important content of the card is the PAN number or the Permanent Account Number. The PAN number is unique to every person/entity holding the card and it contains some key information. The number is generated based on the details provided by the entity. It is a 10 letter alpha-numeric number and each character represents information. Such information is as follows:
- First three letters – these three letters are purely alphabetical in nature and contain three letter of the alphabet from A to Z.
- Fourth letter – the fourth character of the PAN number represents the category of tax payer the entity is. The various entities and their respective characters are as follows:
- A – Association of Persons
- B – Body of Individuals
- C – Company
- F – Firms
- G – Government
- H – Hindu Undivided Family
- L – Local Authority
- J – Artificial Judicial Person
- P – Individual
- T – Association of Persons for a Trust
- Fifth letter – the fifth letter is the first letter of the individual’s surname
- Remaining letters – remaining characters are random. The first 4 characters are numbers while the last one is an alphabet.
- Signature of the individual – the last detail on the PAN card is the signature of the individual. As such, a PAN Card also acts as a proof of the individual’s signature required for various financial transactions.
- Photograph of the individual – the photograph of the cardholder is also present in the lower right hand side of the PAN Card which makes the card eligible to act as a photo identity proof of the individual. In case of companies and firms, no photograph is present on the card.
The key uses of a PAN Card can be illustrated as follows:
- For filing tax returns – individuals and entities (companies, partnership firms, HUFs, etc.) are required to quote their PAN numbers whenever they file a tax return. This is a mandatory requirement. If there is no PAN card, individuals and entities would be required to pay a flat tax of 30% on their earning irrespective of the income-tax bracket they might fall in. So, for the purpose of taxation, a PAN number is required and one can check PAN card status by PAN number
- Registration of business – companies, partnership firms, Hindu Undivided Families or other entities who seek registration of their businesses cannot do so if they do not have a PAN number to quote in the registration details.
- For conducting financial transactions – a host of financial transactions can be done only if the PAN card no. of the individual/entity is available. Some common transactions facilitated by the PAN card include sale or purchase of any immovable property the value of which is Rs.5 lakhs and above, sale or purchase of any vehicle except a two-wheeler, depositing any amount higher than Rs.50,000 in a bank, buying bonds valued at Rs.50,000 or above, remitting funds outside India, travel expenses made for travelling overseas if such expenses are in excess of Rs.25,000, buying mutual fund schemes, buying insurance policies or shares valued at Rs.50,000 and above, etc.
- For availing utility connections – in many instances when utilities like a post-paid mobile phone connection, LPG connection, electricity connection, internet connection, etc. are required, a PAN card comes in handy. However, it is always recommended that you use alternate ID proof such as DL, Voter ID card, etc. if possible.
For opening a bank account – nowadays the bank’s Know Your Customer (KYC) norms have become quite stringent and the PAN card is a primary requirement, banks carry out their individual number verification when opening a bank account.
A PAN Card can be applied for in two ways. One can apply online for pan card through the popular online pan card application process or alternately, the offline mode of PAN card application may also be used. In the following sections we will discuss the methods you can use to apply for and get a PAN card.
- Online PAN application – the Government has eased the online PAN application process for individuals or entities desirous of availing a PAN Card online. There are two websites where an individual can apply online for a PAN card. One is the National Securities Depository Limited (NSDL) website and the other is the UTI Infrastructure Technology and Services Limited (UTIITSL) website. Both these websites are authorized by the Government to offer NSDL or UTI PAN Cards. Applicants should apply for PAN card on only one of these websites as it is illegal to have more than one PAN.
- Offline application – applying for the PAN Card can also be done offline at any district level PAN agency. The relevant PAN form is available at such agencies which should be filled out by the applicant and submitted along with all the supporting documents which are required for such applications. A fee will be payable at the time of submitting the completed form after which the application is processed and the PAN Card reaches the applicant’s residential address subsequent to being issued by the authorities. The applicant can download the PAN Card Form 49A from the NSDL or UTI PAN website, print it, fill it, attach relevant documents, pay applicable processing fees and submit the same with one of the agencies authorized for issuing a PAN Card.
Applying for the PAN Card online for new pan card
Though the offline medium of PAN Card application is available the PAN card apply online method is easy and fast. The online application process for PAN card does not require locating and visiting any authorized district level PAN card agency and an individual can PAN online apply through the NSDL or UTIITSL website even from the comfort of one’s home. Here are the steps which are to be followed when applying for the PAN Card using the online mode of application and PAN card registration.
- Visit the relevant website of NSDL or UTIITSL for online application for PAN Card.
- On the website select the option ‘New PAN’ on the home page.
- There is a new PAN Card Form 49A which should be selected for individuals whether they are Indian Citizens, NRE/NRI or OCI Individuals.
- This form should be filled with the individual’s details. The details include the name of the individual, name of the father, residential address in full, date of birth, telephone number, gender and other required details.
- This form should be then submitted online.
- The applicant would also be required to pay the processing fee online of through a Demand Draft after submitting the form to initiate processing of the form.
- The final page which is generated after paying the fees and submitting the filled out PAN Form 49A contains the 15-digit acknowledgement number. This form needs to be printed out and retained with the applicant for his/her records.
- The acknowledgement form should be sent to the NSDL PAN office by courier within 15 days of online submission of Form 49A. However, before sending the acknowledgement form, certain documents should be attached with the same. These documents include the passport-sized photograph of the applicant, proof of identity, proof of residence, proof of age, and a Demand Draft if the processing fee is being paid through a Demand Draft (cheques are not accepted for PAN card application fees).
- After the acknowledgement form is couriered to the NSDL office, PAN no. verification is done and the Card is generated after the NSDL PAN verification. The physical PAN card is sent to the customer’s address as mentioned in the form within a period of 15 days. Meanwhile one can track their PAN no. status online using the acknowledgement number to ensure that things are moving along smoothly.
Since a PAN Card can be availed by both individuals and entities, different types of PAN Cards need to be applied through different variants of Form 49 that are issued by the government. Here are the different types of PAN Cards and the different Forms used for availing the same.
- PAN Card for Individuals – this is the most common variant of the PAN Card that is issued to individuals. This card is applied through Form 49A available online through the NSDL and UTIITSL websites. Individuals include any resident Indian including minors and students as they are also eligible for a PAN card.
- PAN Card for Non-Resident Individuals or Persons of Indian Origin – NRIs and PIOs can avail a PAN Card for the purpose of taxation in India. They too would have to submit Form 49A for availing this card.
- PAN Card for foreign entities paying tax in India – firms or corporates which are registered outside India but pay tax in India by virtue of their business operations conducted in India can also avail a PAN Card. They would have to fill and submit Form 49AA as part of the PAN card application process.
- PAN Card for OCI and NRE – Overseas Citizens of India and Non Resident Entities can also apply for a PAN Card. The relevant form which should be filled out by them when applying for the PAN card is Form 49AA.
PAN Card for Indian Companies – firms and corporate entities registered as well as working in India can also apply for a PAN Card for their financial and tax-related transactions.
While availing a PAN Card, some key documents are also required to be submitted along with the PAN Card application form (Form 49A or Form 49AA) or the acknowledgement form (if applying online) for PAN card verification process. The requirement of documents varies greatly depending on the applicant. Key documents which are required along with the PAN application form when individuals or other entities apply for a PAN card include the following:
For an individual applicant:
- Identity Proof which can be a copy of any one among the following:
- Any govt. issued ID – Aadhar, DL, Voter ID, etc.
- Arm’s License
- Pensioner Card which contains the applicant’s photograph
- A photo ID card which is issued by Central Government, State Government or a Public Sector Undertaking
- Central Government’s Health Scheme Card or Ex-Servicemen’s Contributory Health Scheme Photo Card
- An original bank certificate which is issued on the bank’s letterhead from the branch of the bank and attested by the issuing officer. Such a certificate should contain an attested photograph of the applicant along with the bank account number.
- An address proof which can be a copy of any one of the following:
- Electricity, landline or broadband connection bill
- Postpaid mobile phone bill
- Water bill
- LPG or piped gas connection bill or Gas Connection book
- Bank account statement
- Credit card statement
- Deposit account statement
- Post Office account Passbook
- Voter’s ID Card
- Driving License
- Property registration document
- Domicile certificate issued by the Indian Government
- Aadhar Card
- Original certificate from the employer provided that the employer is a reputed public or private corporation
- Date of birth proof which can be a copy of any one of the following:
- Birth certificate which is issued by the Municipal Authority or any authorized authority
- Matriculation certificate
- Pension Payment order
- Marriage certificate issued by Registrar of Marriages
- Driving license
- Domicile certificate issued by the Indian Government
- An affidavit sworn before a magistrate stating the applicant’s date of birth
For a Hindu Undivided Family (HUF)
- An affidavit issued by the Karta of the HUF stating the name, address and the father’s name of every coparcener as on the date on which the application is made.
- Identity proof, address proof and date of birth proof as in case of an individual for the Karta of the HUF.
For a company registered in India
- A copy of the Certificate of Registration issued by the Registrar of Companies.
For firms and Limited Liability Partnerships formed or registered in India
- A copy of the Certificate of Registration issued by the Registrar of Firms or Limited Liability Partnerships.
- A copy of the Partnership Deed.
For Trust formed or registered in India
- Copy of Trust Deed or a copy of the Certificate of Registration Number issued by a Charity Commissioner.
For an Association of Persons
- Copy of Agreement/Certificate of Registration Number from Registrar of Co-operative Society or Charity Commissioner or other competent authority or any document issued by the Central/State Government which shows identity and address of applicant.
For individuals who are not Indian Citizens
- A proof of identity which can be any one of the following:
- Passport copy
- Copy of PIO card issued by the Indian Government
- Copy of OCI Card issued by the Indian Government
- Copy of other national or citizenship Identification Number or TIN attested by applicable ‘Apostille’, Indian Embassy, High Commission or Consulate where the applicant is based.
- Address proof can be any one of the following:
- Passport copy
- Copy of PIO card issued by the Indian Government
- Copy of OCI Card issued by the Indian Government
- Copy of other national or citizenship Identification Number or TIN attested by relevant ‘Apostille’, Indian Embassy, High Commission or Consulate
- Copy of bank statement of the residential country
- Copy of NRE bank statement in India
- Copy of resident certificate or Residential permit
- Copy of registration certificate issued by FRO
- Copy of VISA granted and appointment letter from any Indian company
Know your PAN status - One can track PAN Card status online after the applicant has applied for it. The PAN Card application status can be tracked where the PAN status shows whether the card has been issued or not or if it is currently in transit. The applicant can check PAN Card status or check UTI PAN card status/NSDL PAN card status on the respective websites. The UTI PAN Card status is available on UTIITSL and the NSDL PAN status is available on the NSDL website and both show the respective PAN application statuses. The status of PAN Card can thus be tracked online and one can figure out the online PAN Card status by name and date of birth entered in the websites.
Making changes in a PAN Card
Existing PAN card holders can make changes on their existing PAN Card details while at the same time retaining the PAN Number. Any correction in the details contained in the PAN Card can also be made using this procedure. For this a PAN Card correction form needs to be filled and submitted to the relevant authority.
Duplicate PAN Card
For a lost PAN Card, the applicant can also apply for a duplicate one by submitting the required form and paying the applicable fee for application processing.