From filing an Income Tax Return to making a bank transaction above Rs. 50,000, a Permanent Account Number is the most important document issued under the Income Tax Department of India Act, 1961.
All the individuals having a taxable income are required to have the 10-digit alphanumeric PAN Number including the Indian Citizens who are the residents of the country, Non-Resident Indians (NRIs), Overseas Citizens of India, Hindu Undivided Families (HUFs), Companies, Limited Liability Partnerships (LLPs), etc. The Income Tax Department has a record of all the major financial transactions for the purpose of tax through the issued PAN Card.
However, applying for a PAN Card is quite an easy and convenient process and can be done through both the online and offline modes, but sometimes the application gets rejected due to some minor reasons.
Wondering what are the reasons for PAN Card Application Rejection? Let us understand the reasons and the ways to avoid them in detail.
What are the Reasons for Rejection of PAN Card Application?
There are two primary reasons due to which a PAN Card Application is rejected. They are:
- Rejection due to discrepancy in the PAN Application Form
When you apply for a PAN Card, you have to fill the PAN Application form i.e. form 49A (for the Indian Citizens) and form 49AA (for the Non-Residents Indians). The form has to be filled by mentioning the personal details such as the name, date of birth, gender, communication address (the address is not printed on the PAN Card it is only required for the purpose of delivering the PAN Card). However, at times, due to incorrect information mentioned in the form, the application gets rejected.
- Rejection due to the invalid/insufficient supporting documents submitted
Once you apply for a PAN Card, along with the PAN Card application form, you have to submit the supporting documents to the PAN department (either NSDL or UTIITSL) including your proof of address, proof of identity, etc. In case, the PAN Card issuing authority finds any discrepancy in the documents submitted, it rejects your application.
What are the Ways to Avoid the Rejection of PAN Card Application?
While submitting the PAN Card Application form, you need to keep the following things in mind:
- While mentioning your ‘name’ in the PAN Application Form, make sure you don’t use the initials as it is considered to be one of the prime reasons why PAN Card Application is rejected
- You need to make sure that your name mentioned in all the documents such as proof of identity or your other documents do match the name provided in the PAN Application form
- While mentioning your address in the PAN Application form, do not forget to write to your full address including the PIN Code
- When you mention your phone number (landline), you must mention the STD and ISD codes whereas, while mentioning your mobile number, you have to fill the Country Code as it helps the PAN issuing authorities to contact in case of any issues
- You have to furnish all the supporting documents such as the proof of identity, proof of address to dispatch the PAN Card, proof of age, etc. on the NSDL or UTIITSL Website
- Make sure the signature must be across the pasted photograph on the left of the acknowledgement as the photograph is affixed on the right side of the application form
To know more about the documents for PAN Card Application in detail, click here.
Why do you need a PAN Card?
Let’s us know the various reasons why do you need a PAN Card:
- PAN Card is needed when your total income exceeds the threshold amount and it is not chargeable to tax
- The charitable trusts when filing for Income Tax Returns need to provide a PAN Card
- In case you want to obtain an import or export code, a PAN Card is required
- A PAN Card is considered as a Proof of Identity when applying for a driving license, passport, opening a bank account (public/private/cooperative or other banks)
- If you want to open a fixed deposit account amounting to above Rs. 50,000, it is mandatory to provide a PAN Card
- For the payment of an amount exceeding Rs. 50,000 to a company or an institution for acquiring bonds or debentures
- A PAN Card is also required for the payment exceeding Rs. 50,000 for the purchase of mutual fund units
Read More at: Know your PAN Card- Needs and Advantages of PAN Card
About PAN Card:
A Permanent Account Number is a 10-digit alphanumeric unique number which is issued by the Income Tax department of India under Section 139 of the Income Tax Act, 1961. A PAN Card is issued to individuals, companies, partnership firms in order to file for the Income Tax Returns (ITRs). Moreover, PAN Card is also issued to minors, students and Non-Resident Indians. Individuals have to fill form 49 A for PAN Application whereas Non-Residents Indians have to fill form 49 AA either at the NSDL Portal or the UTIITSL Portal (for online mode of PAN Application).