All Indian citizens having the source of income and valid proofs (as prescribed by the Income Tax Department) are eligible to apply for PAN card. Obtaining a PAN card or Permanent Account Number is mandatory for every tax payer or the person who needs to file an income tax return on behalf of self or others. Basically, any individual/non individual (including the foreign citizens/entities) earning taxable income in India must have a PAN card.
A PAN card is necessary for various activities. Here are some of them:
- To file income tax returns
- It serves as a proof of identity
- To open a new bank account and depository account
- To apply for credit card and bank loans
- For sale or purchase of immovable property with Rs. 5 lakh and more valuation
- Any payment to restaurants exceeding Rs.25000
- Depositing into bank account an amount of Rs.50000 and more
- For sale or purchase of a car or any other vehicle (apart from two wheeler)
- Payment of an amount Rs. 50000 and more towards investment purpose
- For jewelry purchase after the prescribed limit
Eligibility Criteria for Applying PAN Card
For any Individuals, Companies, Non-Residents Indians or anyone who is liable to pay tax in India requires to possess a PAN Card. All existing assessees or taxpayers or persons who are required to file a return of income, even on behalf of others, must have a PAN. Any person, who intends to enter into economic or financial transactions where quoting PAN is mandatory, must also have a PAN.
banneBasic PAN Card Eligibility Criteria to Apply Online (For Indian Citizens)
Indian citizens/companies/entities need to apply for PAN card by using Form 49A. Get all the information about PAN card eligibility criteria and supported documents required for Indian citizens who want to own identity for PAN Card. Some of the basic and important criterion is mentioned below:
- Individual: Applicant should be an Indian citizen with valid identity proof, address proof and date of birth proof (Checklist of acceptable proofs is available in the website)
- Hindu Undivided Families: An HUF is a separate entity. Hence, the PAN card can be applied in HUF’s name to enter into financial transactions. Head (Karta) of the family can apply for PAN card on behalf of family by furnishing his proof of identity, proof of address and DOB proof along with providing fathers name and addresses of all the co-parceners of HUF. Affidavit needs to be made by the Karta of HUF mentioning all the details.
- Minors: Minors can also apply for PAN card. PAN card is a mandatory requirement in case of making them nominee for a property and also to make investments in their name. Parents of minor can sign the form 49A on behalf of them. Proofs of parents are to be submitted along with date of birth proof of child while submitting the form. Aadhaar number of minor needs to be quoted in the form.
- Mentally Retarded Individuals: If needed, mentally retarded individuals can also obtain a PAN. Application has to be submitted by their representatives.
- Partnership Firm: Copy of certificate of registration issued by Registrar of firms or Copy of Partnership Deed needs to be submitted to obtain a PAN card.
- Limited Liability Partnership: Copy of Certificate of registration issued by the Registrar of LLPs needs to be submitted to get a PAN card.
- Trusts: Trusts are eligible to apply for PAN card by furnishing trust deed and certificate of Registration number issued by charity commissioner.
- Companies: PAN card for companies can be applied online. Companies need to register with the state Registrar of Companies before applying for PAN card as registration number is mandatory. Copy of Certificate of Registration issued by the Registrar of Companies need to be furnished along with the form.
- Local Authorities: Local authorities can also place an application for obtaining PAN by submitting a copy of the agreement.
- Association of Persons: Registered associations can apply for PAN card by submitting a copy of their registration certificate.
- Artificial Judicial Person: They are eligible to apply for PAN card by submitting the registration certificate or government establishing identity and address of such person.
Eligibility Criteria and Documents Required for Foreign Citizens / Entities
Foreign citizens/entities can use Form 49AA to apply for a PAN card. Here are some of the basic eligibility criteria for pan card that have to be met to obtain a PAN card:
- Foreign Citizens/Individuals:Foreign individuals who intend to do any financial transactions in India has to apply for PAN card by submitting valid ID and address proof along with date of birth proof. They can furnish copy of below documents as proofs.
Proof of Identity:
- Passport/PIO card/OCI card
- TIN (Taxpayer Identification Number) or CIN (Citizenship Identification Number) attested by the Ministry of External Affairs or High Commission or Indian Embassy. Applicant can even get this attested by the consulate of the country where he/she resides or from an authorized official of Indian scheduled bank branch situated overseas.
Proof of Address:
- Passport/PIO/OCI
- TIN (Taxpayer Identification Number) or CIN (Citizenship Identification Number) attested by the Ministry of External Affairs or High Commission or Indian Embassy. Applicant can even get this attested by the consulate of the country where he/she resides or from an authorized official of Indian scheduled bank branch situated overseas.
- Bank statement of account ( from the country where he/she resides)
- Bank Statement of account from the NRE (Non-resident External) account held in India
- Certificate showing the residence status in India or residence permit issued in India by the police authorities
- Certificate of registration carrying Indian residential address issued by the Foreigner’s Registration Office.
- Copy of visa granted or a contract or letter of appointment given by Indian company. Even an address proof letter issued by an Indian employer in original can be produced.
For Foreigners: They are eligible to apply for PAN card by submitting below documents along with PAN Form 49AA.
- A photocopy of Registration certificate issued by the country where the entities is situated duly attested by the Ministry of External Affairs or High Commission or Indian Embassy. Applicant can even get this attested by the consulate of the country where he/she resides or from an authorized official of Indian scheduled bank branch situated overseas.
- A copy of Registration Certificate obtained in India or approval obtained from Indian authorities to setup a branch office in India.