All individuals/non-individuals (including foreign citizens/entities) earning taxable income in India must have a PAN card. All tax-related information of a person/entity is linked and stored against this 10-digit alpha-numeric code. However, before applying for a PAN card individuals and entities must consider their specific PAN card eligibility criteria and documentation requirement.
This article discusses in detail PAN card eligibility, importance of having a PAN card along with answers to some common queries.
Eligibility Criteria for PAN Card Application
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.
Basic PAN Card Eligibility Criteria to Apply Online (For Indian Citizens)
Indian citizens/companies/entities need to apply for PAN card using Form 49A. Some of the basic and important eligibility criteria and supporting documents required by Indian citizens/companies/entities who want to apply for PAN card is mentioned below:
- Individual:Applicant should be an Indian citizen with valid identity proof, address proof and date of birth proof.
- 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 minors 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 from government establishing identity and address of such person.
To know more about the exact list of acceptable documents require to apply for a PAN card, click here.
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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 and documents required to obtain a PAN card:
A. Foreign Citizens/Individuals: Foreign individuals who intend to do any financial transactions in India have to apply for PAN card by submitting valid ID and address proof along with date of birth proof. They can furnish a copy of below-mentioned 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 account statement (from the country where he/she resides)
- NRE (Non-resident External) bank account statement 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.
B. Foreign Entities:They are eligible to apply for PAN card by submitting the below-mentioned documents along with PAN Form 49AA:
- A photocopy of Registration certificate issued by the country where the entities are 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 issued in India or approval obtained from Indian authorities to setup a branch office in India.
Why is PAN Card Necessary
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 valuation of Rs. 5 lakh or more
- Any payment to restaurants exceeding Rs. 25,000
- Depositing into bank account an amount of Rs. 50,000 and more
- For sale or purchase of a car or any other vehicle (apart from two wheeler)
- Payment of an amount Rs. 50,000 or more towards investment purpose
- For jewelry purchase after the prescribed limit
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FAQs
Q. If a person wants to apply for a new PAN card, then is it necessary for the person to destroy the old PAN card?
Ans. It is illegal to possess more than one PAN card. A PAN once issued remains valid forever and all persons who have been allotted PAN need not apply for it again. However, in case a person wants the new tamper-proof PAN card or wants to make changes/correction to their existing PAN details they will have to destroy their old PAN card.
Q. What is PAN card eligibility age?
Ans. As per section 160 of the Income Tax Act, there is no minimum age requirement to avail a PAN card. All Indian and foreign citizens (including minors) and entities are eligible to apply for a PAN card.
Q. Do I have to be in India to apply for PAN Card?
Ans. No, you can apply for a PAN card online anytime-anywhere via the NSDL (now Protean) website or UTIITSL portal.
Read more: How to Apply for PAN Card Online through NSDL (Protean) and UTIITSL
Q. Is it possible for someone to apply on behalf of a minor, lunatic, non-resident, idiot or court of ward?
Ans. As per Section 160 of IT Act, 1961, minor, lunatic, non-resident, idiot, court of wards and other such persons can be represented through a Representative Assessee. In such cases, application for PAN can be made by the Representative Assessee.