PAN Card or Permanent Account Number is a ten digit alphanumeric code (number) allotted by the Indian Income Tax Department to the person who applies for it.
An example of PAN Card Number would be in the form of JRKLC1164B.
A PAN Card is issued by the Income Tax Department of India under the supervision of the Central Board for Direct Taxes (CBDT).
A PAN Card acts as an important proof of identification.
The PAN has become mandatory for a majority of financial transactions, including opening a bank account, filing income tax return, receiving taxable salary or professional fees, sale or purchase of assets, especially high-value transactions.
The PAN is unique for every individual and remains valid throughout the entire life of the holder, throughout India.
Another important point about PAN is that once issued; it is not affected by a change of address.
A PAN Card serves as a universal identification for all financial transactions and is used as a primary means for preventing tax evasion by keeping track of monetary transactions.
However, a PAN Card is also issued to foreign nationals (such as investors) who hold a valid visa and so it does not serve as a proof of Indian citizenship.
Provisions and Structure of PAN Card
- PAN Card is issued under Section 139A of the Indian Income Tax Act.
- The structure of PAN Card is as follows: AAAPL1234D
- The first characters are letters, next four are numerals, and the last character is a letter.
- The first three letters contain alphabets from AAA to ZZZ.
- The fourth character in the PAN Card No. identifies the type of holder. Each type of holder is uniquely defined as shown below:A – Association of Persons (AOP)
B – Body of Individuals
C – Company
F – Firm
G – Government
H – Hindu Undivided Family (HUF)
L – Local Authority
J – Artificial Juridical Person
P – Individual
T – Trust
K – Krish (Trust Krish)
- The fifth letter in the PAN Card Number signifies the first character(a) Of the surname or last name of the person where the holder is “Personal” PAN Card, wherein the fourth character is “P.”
(b) Of the name of the Entity, Organization, Society, or Trust in the case of
Company/HUF/AOP/BOI/Firm/Local Authority/Government/Artificial Judicial Person
- The last character in the PAN Card No. is an alphabetic check digit.
Why you need a PAN Card?
PAN Card, issued by the Indian Income Tax Department, has become one of the most important documents nowadays.
Whether it is filing Income Tax Returns, opening a bank account, purchase of foreign currency, sale and purchase of immovable property, vehicles, and bank deposits above Rs.50000, you will need PAN Card for each of these activities.
PAN Card links all financial transactions done by a particular individual or entity. PAN Card enables Income Tax Department to have a detailed record of all major transactions for tax purposes. So, it is used by Income Tax Department for preventing tax evasion by individuals.
Here, we have listed down the uses of PAN Card:
Filing of Income Tax Returns – A PAN Card is mandatory for the filing of Income Tax Returns.
The opening of Bank Account – All banks, whether cooperative, private, or public, need a PAN Card submission to open a new bank account with them, whether savings bank account or current account.
Purchase of Jewellery – When buying any sort of jewelry worth above Rs. 5,00,000, you need to furnish your bank account details when making the purchase.
Applying for a Debit or Credit Card – At the time of applying a debit card or credit card with any bank or financial institution, you need to furnish your PAN Card details. The debit card or credit card will not be issued if this criterion is not met.
Buying or Selling a Motor Vehicle – At the time of buying or selling a motor vehicle worth above Rs. 5,00,000, you need to provide your PAN Card details, when making the transaction.
Making Investments – When you invest in securities, you need to provide your PAN details for any transactions above Rs.50,000. It applies to investment in equities, mutual funds, bonds, and debentures.
Foreign Exchange – Whenever you are traveling abroad and want to convert your Indian currency into foreign currency, you need to furnish your PAN details at the money exchange bureau or bank where you convert your money.
Property – You need to submit your PAN Card proof while buying, selling, or renting property in India. At the time of buying of property, the PAN details of the buyer and as well of the seller is listed on the sales deed or any other such document for making the sale complete.
Fixed Deposits – While investing your money in a Fixed Deposit (FD) with a bank amounting to above Rs.50,000, you need to provide your PAN details. It is done as the bank deducts TDS (Tax Deductible at Source) on the interest earned on FD.
Loans – At the time of applying for a loan with a bank or any other financial institution, you need to provide your PAN details for getting the loan approved. It is applicable for all types of loans, including educational loan, as well as a personal loan.
Cash Deposits – At the time of making cash deposits with a bank amounting to over Rs.50,000 at a time, you will need to provide your PAN details.
Insurance Payments – PAN details have to be submitted while making payments exceeding Rs.50,000 a year.
Telephone Connection – At the time of applying for new telephone or mobile phone connection, you may need to submit your PAN details, as some cellular operators will not provide a connection without PAN.
Proof of Identity – A PAN Card is recognized as a valid proof of identity throughout India. It is also considered as proof of age. A PAN Card can be used as a proof of identity while making an application for a driving license, passport, Voter ID Card, etc.
So, we see that there are numerous uses of PAN Card, both financial and non-financial.
How to apply for PAN Card?
Application for a new PAN Card should be made complying Rule 114 of the Income Tax Rules. As per the Rule 114, application for new PAN Card is required to be made in Form49A.
For applying PAN, you need to submit the prescribed PAN application to the authorized PAN agency of the district.
PAN Card application can also be made online by submitting to NSDL website, UTI along with proof of ID, two recent passport size color photographs, Proof of Address, Date of Birth proof, and fee. Users having Aadhaar Card can also submit e-KYC.
You can apply for New PAN Card online by submitting Form 49A on the following NSDL website
You need to fill out the application form furnishing all details on the link mentioned above. The fields marked (*) are mandatory. You have to mention the Ward, Circle, Range, & the AO Code.
Once you submit the details, an acknowledgment will be generated signifying that the application has been accepted. It would contain a 15 digit Acknowledgement number. You need to save and print this acknowledgment.
You need to furnish the following with the printed acknowledgment:-
- You need to affix two recent color photographs in the space provided in the acknowledgment.
- You need to sign within the space provided in the acknowledgment form.
- You also have to cross-sign on the photo affixed on the left side. A part of your signature should be on the photo and a portion of the acknowledgment form.
- In the case of applicants other than individuals, the authorized signatory has to sign on the acknowledgment and affix appropriate seal and stamp.
Once this is done, you need to send the acknowledgment form along with requisite documents and Demand Draft (if any) to NSDL at:
“Income Tax PAN Services Unit, NSDL E-Governance Infrastructure Limited, 5Th Floor, Mantri Sterling, Plot No. 341, Survey No. 997/8, Model Colony, Near Deep Bungalow Chowk, Pune – 411016.”
You should super-scribe the envelope in which the acknowledgment form is sent with “Application for PAN – Acknowledgement Number.” The acknowledgment form needs to reach NSDL within 15 days from the date when the online application is made.
PAN Card Fees
PAN Card Fees for resident Indians is Rs. 105. The PAN Card Fees can be paid either by Demand Draft/Cheque/Credit Card/Debit Card/Net Banking.
The Cheque should be drawn in favor of NSDLPAN and deposited in any HDFC Bank Branch.
Applicants who make payment using Credit Card(Debit Card)/Net Banking shall be charged an additional Rs.5 /Rs.4 respectively.
PAN Card Fee for applicant residing outside India is Rs. 971. In this case, the payment is only accepted through Demand Draft.
In both of the above cases, the Demand Draft should be drawn in favor of “NSDL-PAN” and should be payable at Mumbai.
Document Requirement for Applying for PAN Card
The PAN Card applicant has to provide his proof of identity, proof of address, and proof of date of birth while sending the acknowledgment form to NSDL.
The applicant needs to submit a copy of any one proof of identity, along with any 1 proof of address and date of birth proof. It should be noted that all documents should be in the name of the applicant.
The complete list of documents that can be submitted against new PAN Card application can be obtained from the following link.
Checking PAN Card Status
The status of new PAN Card application can be tracked through the NSDL website after three days of making the application.
The applicant has to enter the acknowledgment number or name and date of birth on the link mentioned below for getting the status of his PAN Card application.
The link for checking PAN Card Status is as follows: https://tin.tin.nsdl.com/tan/StatusTrack.html
SMS facility is also available for checking PAN Card Status.
You need to type:
NSDLPAN15 digit acknowledgment number
And send it to 57575
In the case of any query, you can contact:-
Income Tax PAN Services Unit,
NSDL E-Governance Infrastructure Limited,
5Th Floor, Mantri Sterling, Plot No. 341, Survey No. 997/8, Model Colony, Near Deep Bungalow Chowk, Pune – 411016
Tin Call Centre: 020-27218080; Fax: 020-27218081
Linking PAN Card to Aadhaar Card
Under the Services section, there is “Link Aadhaar” displayed.
Click on the “Link Aadhaar.”
A Page will be displayed where you have to enter your PAN, Aadhaar Number, and Name as per Aadhaar.
Then enter the Captcha code.
Finally, click on “Link Aadhaar” button.
A pop-up message is displayed that informs you that your Aadhaar Card has been successfully linked to your PAN Card.
However, the details on your PAN Card should match the details mentioned on your Aadhaar Card.
The Government of India has made it mandatory to link PAN Card of an individual with that of the Aadhaar Card while filing IT return.