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PAN Card - Permanent Account Number in India

TeamAckoNov 7, 2024

In today's digital world, the Pan Card has become an essential document for individuals in India. It serves as a unique identification number that is crucial for various financial and legal transactions.

Whether you're opening a bank account, filing your income tax returns, or engaging in any financial activity, having a PAN Card is mandatory. In this comprehensive guide, we will delve into the intricacies of PAN Card, its significance, and the process of obtaining one. Let's explore the world of PAN Card together!

Contents

What is a PAN card?
PAN Card – Overview
The importance of PAN Card
What is a PAN card used for?
Eligibility for PAN
Types of PAN
Documents Required for PAN
How to apply for a PAN card
What are the do’s and don’ts while applying for a PAN card?
How to Update/Edit PAN Details
Lost PAN Card?
Tracking PAN Applications and Transactions
PAN for e-KYC (Know Your Customer)
Wrapping up
Frequently Asked Questions (FAQs)

What is a PAN card?

A PAN card, short for Permanent Account Number, is a unique ten-digit code given by the Income Tax Department of India. It acts as a means of verifying a person's identity and is crucial for engaging in financial transactions and adhering to income tax rules. The PAN card includes important details like the person's name, date of birth, photograph, and, notably, the distinct PAN card number.

PAN Card – Overview

Topic	Information
Authority issuing PAN	Income Tax Department, Govt. of India
PAN Customer Care Number	020 – 27218080
Inception of PAN Card	1972
Validity Of PAN Card	Life Time
Cost of PAN Card	Rs. 110
Number Of Enrolments	25 crore (approximate)

The importance of PAN Card

Having a Pan Card brings with it a multitude of benefits. Let's take a closer look at why it is so crucial:

1. Facilitates Financial Transactions

With a Pan Card, individuals can carry out a wide range of financial transactions smoothly. From opening a bank account and applying for a loan to making investments and purchasing property, the Pan Card acts as a proof of identity and helps streamline these processes.

2. Enables Income Tax Compliance

One of the primary purposes of the Pan Card is to ensure income tax compliance. It is mandatory for individuals earning a taxable income to possess a Pan Card. Filing income tax returns, claiming tax refunds, and fulfilling other income tax obligations require the Pan Card number.

3. Prevents Tax Evasion

The PAN card plays a significant role in preventing tax evasion. By connecting financial transactions to a distinct identification number, the government can effectively monitor and trace individuals' financial actions, promoting a transparent and equitable taxation system.

What is a PAN card used for?

A PAN card serves multiple purposes and is widely used for the following.

Identification: PAN card is primarily used as a proof of identity. It verifies the identity of individuals, including their full name, photograph, and unique PAN number.

Income Tax Filing: PAN card is mandatory for filing income tax returns in India. It helps the government track financial transactions and ensures tax compliance.

Financial Transactions: PAN card is required for various financial transactions such as opening a bank account, making high-value transactions, investing in mutual funds, buying or selling property, etc. It helps in maintaining a record of financial activities and preventing tax evasion.

Employment: PAN card is often requested by employers for verification purposes during the hiring process. It helps employers maintain accurate employee records and comply with tax regulations.

Banking and Investments: PAN card is essential for opening bank accounts, applying for loans, and conducting financial investments such as buying stocks, bonds, or other securities. It enables financial institutions to monitor transactions and comply with anti-money laundering regulations.

GST Registration: PAN card is required for businesses to register under the Goods and Services Tax (GST) system in India. It helps in the identification of businesses and facilitates seamless tax administration.

Government Subsidies: PAN card is used to avail government subsidies, benefits, and schemes. It ensures proper identification and prevents duplication or misuse of subsidies.

Proof of Identity: PAN card can be used as a valid proof of identity and address while applying for various services, such as getting a SIM card, applying for a passport, or obtaining a driving licence.

It is important to note that the PAN card is specific to India and has limited use outside the country. However, it plays a crucial role in the Indian financial and administrative systems, facilitating efficient tax administration and preventing tax evasion. PAN is one of the important required documents for passport.

Eligibility for PAN

PAN cards are issued to individuals, companies, non-resident Indians, and anyone who pays taxes in India. It is a mandatory requirement for all taxpayers to possess a PAN card. Regardless of your taxpayer category, PAN enables you to conduct various financial transactions, open bank accounts, register businesses, and more.

Types of PAN

PAN cards are available for different taxpayer categories, including:

Individual

HUF (Hindu Undivided Family)

Company

Firms/Partnerships

Trusts

Society

Foreigners

Documents Required for PAN

To apply for a PAN card, you need to provide two types of documents: Proof of Address (POA) and Proof of Identity (POI). Here are some acceptable documents

Applicant	POI/POA
Individual Applicant	Aadhaar Card, Passport, Voter ID, Driving License
Hindu Undivided Family	An affidavit issued by the head of HUF along with POI/POA details
Company registered in India	Certificate of Registration issued by Registrar of Companies
Firms/Partnership (LLP)	Certificate of Registration issued by the Registrar of Firms/Limited Liability Partnerships and Partnership Deed
Trust	Copy of Trust Deed or Certificate of Registration Number issued by a Charity Commissioner
Society	Certificate of Registration Number from Registrar of Cooperative Society or Charity Commissioner
Foreigners	Passport PIO/OCI card issued by the Indian Government, Bank statement of the residential country, Copy of NRE bank statement in India

How to apply for a PAN card

Now that we understand the significance of the Pan Card, let's explore the process of obtaining one. The application process for a Pan Card is relatively straightforward and can be completed online. Here's a step-by-step guide:

Step 1: Determine the Appropriate Form

To apply for a Pan Card, you need to fill out the relevant form based on your status. The Income Tax Department provides separate forms for individuals, companies, foreign nationals, and other entities. Ensure that you choose the correct form to avoid any delays or complications in the application process.

Step 2: Gather the Required Documents

Before initiating the application, gather the necessary documents. Typically, you will need proof of identity, proof of address, and proof of date of birth. Valid documents include Aadhaar card, voter ID card, passport, driving licence, and ration card, among others. Make sure the documents are up to date and accurately reflect your information.

Step 3: Fill Out the Form

Once you have the necessary documents, proceed to fill out the application form. Provide accurate and up-to-date information to avoid any discrepancies. Double-check all the details before submitting the form to ensure its accuracy.

Step 4: Pay the Application Fee

After completing the form, you will need to pay the application fee. The fee varies depending on whether the communication address is within India or outside India. The payment can be made online using various methods such as credit/debit card, net banking, or demand draft.

Step 5: Submit the Application

After paying the fee, submit the application online. Upon successful submission, you will receive an acknowledgment containing a unique fifteen-digit acknowledgment number. Note down this number for future reference and tracking purposes.

Step 6: Verification and Processing

Once the application is submitted, it undergoes a verification and processing stage. The Income Tax Department verifies the information provided and conducts necessary checks. If any discrepancies or errors are found, you may be asked to rectify them or provide additional documents.

Step 7: Pan Card Dispatch

Once the application is approved and processed, the Pan Card is dispatched to the communication address provided during the application. You can track the status of your application online using the acknowledgment number. Ensure that you collect the Pan Card from the designated courier or post office promptly.

What are the do’s and don’ts while applying for a PAN card?

Here are the things that you should and should not do while applying for a PAN card.

Do's:

Ensure that you have all the required documents and information before starting the PAN card application process.

Fill in the form, providing accurate and up-to-date information.

Use black ink and capital letters to fill out the application form.

Provide supporting documents such as proof of identity, address proof, and date of birth proof as per the specified requirements.

Make sure that the supporting documents are valid and not expired.

Double-check all the details provided in the application form before submitting it.

Keep a copy of the application form and the supporting documents for your records.

Submit the application form at the designated PAN card application centre or online portal.

Pay the applicable fee for the PAN card application.

Follow up on the status of your application through the official channels or online portals.

Don'ts:

Do not provide incorrect or false information in the PAN card application form.

Do not use any abbreviations or acronyms while filling out the form.

Avoid any alterations or overwriting on the application form. If any mistakes are made, start over with a fresh form.

Do not submit invalid or expired supporting documents.

Avoid submitting incomplete application forms or missing any required information.

Do not forget to sign the application form where required.

Avoid submitting photocopies or scanned copies of supporting documents unless specified.

Do not delay in submitting the application form once it is filled out completely.

Do not engage in any fraudulent activities while applying for a PAN card.

Do not share your PAN card application details or personal information with unauthorised individuals or websites.

Remember to follow the guidelines provided by the official PAN card issuing authority or the online portal for a smooth and successful application process.

How to Update/Edit PAN Details

Updating or editing your PAN details can be done through the following steps:

Visit the UTIITSL website and select the update PAN section.

Choose the option "Change/Correction in PAN Card" in existing PAN data.

Click on the "Apply for Change/Correction in PAN Card details" option.

Enter the details that need to be changed, upload the relevant documents, and submit the form.

Pay the processing fee.

PAN card with updated details will be dispatched within 15 days.

Lost PAN Card?

If you have lost your PAN card, don't worry. You can apply for a duplicate PAN card online or offline. Here's how:

Fill out Form 49-A for Indian citizens or Form 49-AA for foreigners.

Make the payment online for a duplicate copy of your PAN card.

The PAN card will be dispatched within 45 days.

Tracking PAN Applications and Transactions

The Income Tax Business Application (ITBA) provides a tracking facility for PAN applications and transactions. This enables taxpayers to track their PAN-related transactions for tax calculation purposes.

PAN for e-KYC (Know Your Customer)

Linking PAN to Aadhaar is mandatory for e-KYC and verification to avail services and benefits from respective service providers. PAN for e-KYC is a significant service requirement for many providers and offers benefits to both the end-user and the government. Here's why:

Paperless: The e-KYC process is paperless, making it easy for service providers to manage documents efficiently.

Quick: PAN card holders can share information with service providers through secure channels within minutes, eliminating long waiting periods associated with physical documents.

Secure: Information shared between the user and service provider is tamper-proof digital documents sent through secured channels, ensuring the protection of the holder's information. These documents cannot be forged or used without the consent of both the service provider and the PAN card holder.

Authorized: The e-KYC information contains authenticated data, making it legal and acceptable for the parties involved in the transaction.

Cost-Friendly: The entire e-KYC system is paperless and online, eliminating the physical movement of information and making it a cost-effective and time-saving process.

Wrapping up

The Pan Card is a vital document for individuals in India, serving as a unique identification number for various financial and legal transactions. It facilitates financial activities, ensures income tax compliance, and prevents tax evasion. Obtaining a Pan Card is a simple process that can be completed online. By following the steps outlined in this guide, you can acquire your Pan Card efficiently. Remember to provide accurate information and keep track of your application status. Embrace the convenience and benefits of having a Pan Card today!

Frequently Asked Questions (FAQs)

Here are some common questions about PAN card.

What is the purpose of a PAN Card?

The Pan Card serves as a unique identification number and is essential for financial transactions, income tax compliance, and preventing tax evasion.

Is a PAN Card mandatory for all individuals?

No, a Pan Card is mandatory for individuals earning a taxable income and those engaging in specific financial activities.

Can I apply for a PAN Card offline?

Yes, you can apply for a Pan Card offline by obtaining the physical application form from designated centres and submitting it with the required documents.

How long does it take to receive a PAN Card after applying?

The processing time for a Pan Card application is typically around 15 to 20 working days. However, it may vary based on the volume of applications and other factors.

Can I update my details on the PAN Card?

Yes, you can update your details on the Pan Card by applying for a correction or modification. The process involves submitting the required documents and following the prescribed procedure.

What should I do if my PAN Card is lost or damaged?

In case of loss or damage, you can apply for a duplicate Pan Card by following the specified procedure. Report the loss to the nearest police station and provide the necessary documents for obtaining a duplicate card.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.