Ms. Priyanka Dubey, 18 years old, Jaipur resident recently applied for a PAN Card. She has started earning part-time along with her studies. Like Priyanka, many youngsters today are conscious and getting their PAN Cards online. Why? We will let you know.
PAN or Permanent Account Number is a nationalized identity or identity proof. This is required for opening a bank account. Any financial transaction in the nation is considered incomplete if the PAN Card does not back it.
The Income Tax Department allocates this ten digit alphanumeric account. However, to use it, one has to apply for a PAN card and get it issued.
Brief Overview of PAN Card
As mentioned above, the Permanent Account Number is an alphanumeric code assigned by the Income Tax Department in India to every citizen above 18 years of age. This card is an identity proof and is also required at the time of financial transactions. Every taxpayer is assigned this card, and he/she uses this card at the time of transactions.
The concept was first introduced in the year 1972 by the Government of India. At the time of introduction, PAN card was not, but later, it was made indispensable for every taxpayer under the Section 139A of the Income Tax Act 1961. Earlier, the process of application was tedious as the entire protocol was manual, however, with digitalization, now people can apply for PAN card online. In the year 1995, this decision was made, and since then people can apply for PAN card both online and offline.
PAN Card Structure
PAN Card consists of 10 alphanumeric characters; the first 5 characters are alphabets while the next 4 are number followed by 1 character which is an alphabet.
Some other facts about the unique code on the PAN card-
1. The first 3 characters are a random sequence of the alphabet.
2. The fourth character shows the type of applicant like individual, legal authority, company, etc.
3. The fourth character signifies the kind of taxpayer that you are.
A — Association of Persons (AOP)
B — Body of Individuals (BOI)
C — Company
F — Firm
G — Government
H — HUF (Hindu Undivided Family)
L — Local Authority
J — Artificial Judicial Person
P — Individual
T — AOP (Trust)
K — Krishi (Trust Krishi)
In this case, if the individual is applying for PAN card then the fourth character would be ‘P’. So if an individual obtains PAN, his/her PAN will have the fourth character as ‘P’ which stands for the individual taxpayer.
4. The fifth character can be the applicant’s surname. It can be the first charter of the name of the company, local, etc. So, if your name is Rohit Gajpati, then the fifth character is going to be G
5. The last character is an alphabet.
Types of PAN Cards
By now, you know that PAN card is indispensable for every individual, company, NGOs, partnership firms and even the foreign firms who are operating in India come under this jurisdiction. So, the PAN card is issued for both, individuals and companies.
PAN Card for Individuals- As it is apparent from the name, PAN card for an individual is issued to individuals. It helps in keeping track of all the financial transactions.
PAN Card for Companies- PAN card for companies is similar to that of an individual. However, in a PAN card for the company, you will not find any pictures. Also, in place of date of birth, you will find the date of registration of the company.
PAN for Foreign Citizens in India- Any foreign citizen who wishes to start a business in India must get a PAN card. The process of application is similar that an Indian national needs to follow. But, foreign citizen needs to fill Form 49AA instead of Form 49A.
Any HUFs, Trusts or Individuals can also apply for PAN card.
Old PAN Series
The first PAN series was launched in the year 1972. However, it was discontinued for certain reasons.
- There was no central database which made verification of multiple PAN allocation to taxpayer difficult.
- Ill-structured storage of data. Also, it had only basic information like name, address, etc.
- PAN did not have a permanent number as it depended on the jurisdiction of the assessee.
New PAN Series
Earlier the registration of taxpayer made use of the General Index Register Number or GIR, but the new methodology which replaced it had Permanent Account Number or PAN. But, it still had certain drawbacks that needed to be rectified. So, the final transformation in this was done in the year 1995 under section 139A of the Income Tax Act, and that’s how we got the new series of PAN card.
How the new series was better than the old series:
- It linked all the tax-related information to a single identification number similar to UID or Unique Identification number.
- Easily retrievable data from the central database.
- All financial information was linked to a single PAN. Thus it was more authentic and could be used during loan approval.
What information is present on the PAN card?
The PAN card has the following information-
1. It contains your name
2. Date of Birth
3. The PAN Number
4. The date of issue of PAN card
Since all these facts are authorized and approved by the Government of India, PAN card is considered as a indispensable document and is used as ID proof for most of the business processes.
How to apply for a PAN card?
Analogous to the earlier time, applying for PAN card has become very simple nowadays. The application and approval process is also simplified. To apply for the card, you need to submit application form supported by various identity proofs and other information that is mentioned on the form.
The process of application is very straightforward, you can either apply online, or you can also go for the offline application. All you need to do is go to the NSDL website and fill the online application form and upload the required documents.
If you don’t wish to go with online way, then you can download the form from NSDL website and submit the filled application form along with the supporting documents to the PAN Service center near your place.
PAN Card Application Process
How to Apply for PAN Card Online?
PAN card application online is a fairly simple process. The entire process is mentioned on the NSDL website. The applicant needs to go to the website and go to form 49A. This is the PAN application form and one who needs to get a new PAN card needs to fill and submit it.
A PAN card can be applied for through the NSDL (National Securities Depository Limited) as well as through the UTIISL (UTI Infrastructure Technology and Services Limited). Applicants can submit their PAN card applications either offline or online.
Online PAN Card Application Process - Keep yourself ready with three types of documents
Any of these Identity Proof Documents
Any of these Address Proof Documents
Any of these proof for Date of Birth
Electricity Bill, Telephone Bill, Broadband connection, gas Bill or Water bill – of not more than 3 months old.
Municipal Authority or any office authorized birth or death certificate
Ration Card with applicant’s photo
Account statement of the bank
Marriage certificate issued by Registrar of Marriages
Account statement of the depository account
Credit Card Statement
Pension payment order
Post office Pass Book with applicant’s address
Your’s or Spouse Passport
Latest ID Proof
Government-issued domicile certificate
Pensioner Card with applicant’s photo
Government-issued domicile certificate
Health Scheme Card, issued by the central government or Ex-servicemen Contributory Health Scheme photo card
UIDAI issued Aadhaar Card, property registration documents
An identity certificate issued by a Member of Parliament, State Assembly, Local Municipality or a Gazetted Officer
Central or State Government issued a letter of accommodation, not more than 3 years old.
Bank Certificate on letterhead from the branch clearly showcasing the name and stamp of the issuing officer, duly attested pictures and bank account number of the applicant.
Address certificate issued by a Member of Parliament or Member of Legislative Assembly or Municipal Councillor or a Gazetted Officer
For more details click here
The online application process for a PAN card is mentioned below:
- Log in to NSDL website or UTIISL website and choose, the NEW PAN option
- Now you need to choose Form 49A - this form is for PAN card application. This is useful for Indian nationals, NRE, NRI, and OCI individuals.
- Fill all the details like name, address, DOB, gender, income details, etc. Make sure that you fill all the indispensable information.
- Once you have filled the form, submit it for processing.
- After you have successfully submitted the form, then you will get a 15 digit acknowledgment number sheet. You need to print the page and sign in the space provided.
- Attach the passport size pictures on the acknowledgment slip, add proof of identity and address proof along with DD (in case you are making the payment through DD).
- You need to send all these forms to the NSDL office within 15 days of submitting the online form.
- NSDL after assessing the form will send the PAN card to the address mentioned by you on the form, within 15 working days.
- In case one is using the Aadhaar-OTP based verification, he is not required to send the documents to NSDL’s office. It is the complete online process where no offline task is involved.
Offline PAN Card Application Process
- You can visit the local PAN office, or you can download the form from the NSDL or UTIISL website, or you can collect the form from UTIISL agent.
- Fill the form and attach all the necessary documents like address proof, ID proof, and pictures.
- After filling up the form, submit the form to the local NSDL office along with the processing fee.
- After the submission of the form, the application form will be processed, and it will be dispatched within 15 working days.
The filled application form along with the supporting documentation must be sent to the following address:
Income Tax PAN Services Unit
(Managed by NSDL e-Governance Infrastructure Limited)
5th Floor, Mantri Sterling, Plot No. 341,
Survey No. 997/8, Model Colony,
Near Deep Bungalow Chowk,
Pune - 411 016
According to the NSDL guidelines, the application fee for a PAN Card is Rs 107 (processing fee and service tax @15%, but additional charges may apply depending on the payment method. In case, if you wish to send the PAN Card outside the country, the charge is Rs 971.
How many days does it take in processing and printing of a PAN card?
Once you have completely filled the form and submitted it, after processing, it takes around 15 days to print and dispatch the card. Make sure that you keep the acknowledgment number with you. You can track the application status using this number.
Is there any processing fees charged while applying for a PAN card?
The Government of India charges a minimal fee of Rs. 110 which is inclusive of Rs.93 (cost of application) +18% GST.
If you are a foreigner then the processing fee is on a higher side:
Rs. 1020 which is inclusive of Rs. 93(cost of application) + Rs. 771 (dispatch charges) +18% GST.
How to check the PAN card status?
PAN Card Status Online
The following steps will help you in checking the PAN card status-
1. Go to www.tin-nsdl.com
2. Here look for the PAN section, and click on the Services tab
3. Now click on the “Know Status of Your Application”
4. Choose the application type and enter the acknowledgment number
5. You will be prompted with a captcha code.
6. Enter this code in the box and click on the Submit button
7. You will get the status of your PAN application in front of you.
PAN Card Status by SMS
You can also get the details of the status of the application on your mobile number. All you need to do is type "NSDLPAN" followed by the 15-digit acknowledgment number. And send this message to 57575. You will get an SMS mentioning the status of your application.
PAN Card Status by Telephone
You can also make use of their phone number to check the status of PAN card application. You can all on 020-27218080 and get the entire details.
Note: Make sure that you check the status of PAN card 3 days after the submission of the application form.
What if I have lost the PAN card, how can I get a duplicate copy?
PAN card is an important document which consists of the alphanumeric code of 10 digits. It is an important proof of identity and one of the most authentic one. For any kind of financial transaction, you would need a PAN card to support your application form, and hence it is important that you should safely keep this card with you. However, if someone loses this card and want to get a duplicate card, then they need to follow these steps:
1. Similar to the PAN application process, you need to visit the official website of NSDL and apply for the duplicate PAN card request.
2. You need to fill in the desired information mentioned on the form.
3. If you only need a duplicate card and don’t want to change any information out there, then you need to fill the request for the duplicate PAN and submit it. There is a small box on the left margin that would ask if you wish to make any changes. In case you don’t want to change any information and want to continue with the old address, then you have to submit the form.
4. Once you have filled the form, then you need to submit the ID proof like Aadhaar card, passport, and address proof like Voter ID and in addition to this, one needs to submit the form.
5. The applicant needs to pay a small fee which they can pay online. Once this is done, they will get an acknowledgment regarding their application. One must keep this acknowledgment handy and can use it to track the status of their application.
Do’s and Don’ts for PAN Card Application
If you are applying for a PAN card, then you must keep all these points into consideration while going through the application process:
- Make sure that all the details are filled right and matches to the ones that are there in a document supporting your application form.
- Make sure that you get the thumb impression attested by the gazetted officer like Notary office or Magistrate to avoid disqualification of the application form.
- Mention the complete address and accurate contact details.
- Fill the application form in capital letters
- If you are filling the physical form, then don’t overwrite or scribble on the form, it might get the form rejected.
- Do not apply for new PAN card in case it gets stolen, lost or tampered. Apply for a duplicate PAN card.
What are the different kinds of PAN card forms?
As mentioned above, the PAN card forms vary for an Indian citizen to that of a foreign citizen.
Form 49A - This application form is for Indian citizen, whether they stay in India or abroad. NGOs, companies, partnership firms, local bodies, and trusts can also apply for PAN card using Form 49A.
Form 49AA - Foreign citizens who are a taxpayer in India need to fill Form 49AA. LLPs, Trusts, Body of Individuals and Association registered outside India need to submit Form 49AA. Any individual or foreign company who wish to pursue business in India must have the PAN card with them.
When would you need the PAN card?
- It is indispensable when you are paying direct taxes.
- If you are planning to register any business, then you need PAN information.
- While paying tax, the taxpayer needs to add PAN information.
- Many financial transactions would require you to add the PAN information. Here is a glimpse at it :
- While selling and purchase of immovable property which values Rs. 5 lakhs or more.
- If you are paying more than Rs. 25,000 in a hotel
- Sale and purchase of a vehicle (not two-wheeler)
- Payment for travel requirement to other countries. This is needed when the amount exceeds Rs. 25,000/
- In the case of depositing Rs, 50,000 or more in the bank.
- Payment of more than Rs. 5 lakhs towards the purchase of jewelry
- Purchase of mutual fund schemes
- Making a payment of more than Rs. 50,000 while acquiring an insurance policy
- While sending money outside India
- Transferring funds from NRE or NRO account
- Purchasing shares of value more than Rs. 50,000.
Uses of a PAN Card
- You can use this card as proof of identification throughout the nation. It is one of the most authentic pieces of information about an individual’s identity.
- You can keep track of your tax payment.
- You would need a PAN card for a loan application, purchase of property and acquiring electricity and gas connection.
- Since PAN is assigned to every individual, it used to track all the information like payment of taxes, debt liability of an entity and investments made by an individual.
What if a person doesn’t have a PAN card?
Well, PAN card is an important identification proof. If you fall in the taxpayer slab, then you need to have a PAN card, failure of which may result in the following:
- Paying flat 30% tax on your earning and wealth as decided by the Income Tax Department of India. This rule is applicable to individuals, companies and all the entities that fall in the taxpayer slab.
- You would not be able to get a loan or purchase involving or even buy immovable property more than Rs. 10 lakhs. Not having PAN will also not let you open a bank account.
- Businesses would also be charged a TDS of 30% and will not be able to conduct many of its activities. The primary reason for this is that the PAN card is not a indispensable document demanded by the banks and financial institutes.
- How can I apply for a PAN card?
The process of PAN card application is very straightforward. You can either log on to the NSDL website or fill the form online or you can also download the form, fill and post to their headquarter.
- What is the different type of forms for PAN card application?
If you are an Indian citizen, then you need to fill Form 49A.
Foreign nationals need to submit Form 49AA.
- Will I get an acknowledgment after submitting the form?
Once you have filled the form and submitted it, you will get 15 digit acknowledgment numbers which you can also use to track the information or status of your PAN card application.
- Will I get an acknowledgment when I submit my PAN application form at a TIN-FC?
Yes, you will receive an acknowledgment that contains a unique 15-digit number.
- After how many days can I check the status of my PAN card application?
Once you have applied, you need to wait for 3 working days. After 3 days you can check the status of the application form, using your acknowledgment number and logging on to the NSDL website.
- In how many days can I expect to get my PAN card?
If you have applied for a PAN card, then it takes 15 days for it to reach you.
- How many pictures are required? Is it necessary to furnish 2 photos for the application?
If you are applying for a PAN card, then you would need 2 pictures of size 3.5 cm x 2.5 cm. It should be recent pictures, having a white background. The applicant must sign through the pictures in such a way that half of the signature is on the pictures while the other half is on the form.