PAN Card Application

A PAN (Permanent Account Number) card is a vital document issued by the Indian Income Tax Department, featuring a unique 10-digit alphanumeric identifier. It is essential for individuals, companies, NRIs, and foreign nationals conducting financial transactions in India. The PAN card contains crucial information such as the cardholder's name, father's name, date of birth (or registration date for companies), and the all-important PAN. It is crucial for filing income tax returns, company registrations, financial transactions, and utility connections.

IndiaFilings simplifies your PAN card application process, offering expert guidance for both online and offline methods. Choose IndiaFilings for a hassle-free PAN card application today!

What is PAN Card?

A PAN (Permanent Account Number) card is a document issued by the Indian Income Tax Department under the provisions of the Income Tax Act, 1961. It features a distinctive 10-digit alphanumeric identifier that is computer-generated and exclusive to each cardholder. This unique code is designed to be valid for the entirety of the holder's lifetime, serving as a crucial identifier for individuals and entities engaging in financial transactions and tax-related activities within India.

PAN 2.0 - An Overview

The Income Tax Department has launched PAN 2.0 to modernise the process of issuing and managing Permanent Account Numbers (PAN). This initiative introduces e-PAN cards with a secure QR code, sent directly to the registered email IDs of applicants at no extra cost, with a minimal fee for physical PAN cards. It aims towards a fully digital, streamlined, and technology-driven PAN system that aligns with the vision of Digital India. It includes key features such as a QR code, a unified digital platform, enhanced cybersecurity, eco-friendly operations, a secure PAN data vault, and advanced data analytics to detect and prevent fraudulent activities.

Note: The existing PAN card will remain valid even if it has no QR Code, and taxpayers do not need to apply for a new PAN card.

Who can Apply for a PAN Card

Eligibility for obtaining a PAN card extends to a broad spectrum of entities and individuals who engage in financial transactions and are liable to pay taxes in India. This includes:

• Individuals: Indian citizens, regardless of their age or employment status, are eligible to apply for a PAN card. This includes minors, whose applications must be submitted by their parents or guardians.
• Companies: Any company registered in India, irrespective of its size or the nature of its business, is required to have a PAN.
• Non-Resident Indians (NRIs): NRIs who earn taxable income in India or engage in financial transactions that require a PAN are eligible to apply.
• Foreign Nationals: Foreign citizens who conduct business or transactions that necessitate a PAN in India can apply for one.
• Partnerships/LLPs: Partnership firms and Limited Liability Partnerships operating in India need a PAN for tax-related purposes.
• Trusts, Associations, and Other Organizations: Trusts, associations, clubs, and other non-individual entities engaged in economic activities in India are also eligible for PAN.

Structure of PAN Card – PAN Card Details

A PAN card contains essential information that serves as proof of identity and age, complying with Know Your Customer (KYC) guidelines. The key details included on a PAN Card are as follows:

• Name of the Cardholder: The primary and most prominent detail on the PAN Card is the name of the cardholder. It displays the individual's name, the registered name of the company (in the case of a company), or the name of the firm (in the case of a partnership firm).
• Name of the Father: Applicable in the case of individual cardholders, the name of the cardholder's father is mentioned beneath the individual's name.
• Date of Birth: The cardholder's date of birth is mentioned beneath the name of the father on an individual's PAN card.
• Permanent Account Number (PAN): The most crucial content of the PAN card is the PAN, a 10-character alphanumeric unique identifier. The PAN is generated based on the entity's details, with each character representing specific information. T

Format of PAN

The Permanent Account Number format is as follows:

First three letters (Alphabetical): These letters are purely alphabetical and range from A to Z.

Fourth letter: Represents the category of taxpayer. Various entities and their respective characters are:

A – Association of Persons

B – Body of Individuals

C – Company

F – Firms

G – Government

H – Hindu Undivided Family

L – Local Authority

J – Artificial Judicial Person

P – Individual

T – Association of Persons for a Trust

Fifth letter: The first letter of the individual's surname.

Remaining letters: Consist of random characters, with the first four being numbers and the last one being an alphabet.

Signature of the Individual: The PAN card also includes the signature of the individual cardholder.

Photograph of the Individual: The photograph of the cardholder is present on the lower right-hand side of the PAN Card.

Advantages of PAN Card

The PAN Card offers various advantages and serves multiple purposes, making it a crucial document for individuals and entities in India:

• Filing Tax Returns: Individuals and entities, including companies, partnership firms, and Hindu Undivided Families (HUFs), must use their PAN when filing tax returns. It is a mandatory requirement, and without a PAN, individuals and entities may be subject to a flat tax rate of 30%, regardless of their income tax bracket.
• Registration of Business: Entities seeking to register their businesses, such as companies, partnership firms, and HUFs, require a PAN to include in their registration details. PAN is essential for business registration processes.
• Financial Transactions: PAN is necessary for various financial transactions, including:

• Sale or purchase of immovable property valued at Rs. 5 lakh and above.
• Sale or purchase of vehicles (except two-wheelers).
• Depositing amounts exceeding Rs. 50,000 in a bank.
• Buying bonds valued at Rs. 50,000 or more.
• Remitting funds outside India.
• Incurring travel expenses exceeding Rs. 25,000 for overseas travel.
• Investing in mutual fund schemes, insurance policies, or shares valued at Rs. 50,000 and above.

• Availing Utility Connections: PAN Cards are handy when applying for utility connections such as post-paid mobile phone connections, LPG connections, electricity connections, and internet connections. While PAN is useful, alternate ID proofs like a driver's license (DL) or Voter ID card can also be used if available and acceptable.
• Opening a Bank Account: Banks require PAN Cards to comply with Know Your Customer (KYC) norms when opening bank accounts. PAN verification is a primary requirement for account opening.

These advantages demonstrate the importance of a PAN Card in various aspects of financial and official transactions, taxation, and business operations.

Types of PAN Cards and Corresponding Forms

Types of PAN Cards and the Corresponding Forms to be submitted to obtain a PAN Card are listed as follows:

Documents Required for PAN Card Application by Business Type

When applying for a PAN card, applicants must provide specific documents along with their application form (as mentionedabove) or the acknowledgment receipt if applying online. Below is a summarized list of essential documents needed for different types of applicants:

A. Individual Applicants

Identity Proof (submit any one):

• Government-issued ID (Aadhaar, Driving License, Voter ID, etc.)
• Arm's License
• Pensioner Card with photograph
• Photo ID card issued by Central/State Government or PSUs
• Health Scheme Card from the Central Government or Ex-Servicemen Contributory Health Scheme
• Bank certificate on letterhead with attested photograph and account number

Address Proof (submit any one):

• Utility bills (Electricity, Landline, Broadband, Water)
• Postpaid mobile bill
• LPG/Gas connection bill or book
• Bank account/Credit card/Deposit account statement
• Passport, Voter’s ID, Driving License, Property registration, Domicile certificate
• Employer certificate from a reputed company
• Date of Birth Proof (submit any one):
• Birth certificate
• Matriculation certificate
• Pension Payment order
• Passport, Marriage certificate, Driving license, Domicile certificate
• Affidavit before a magistrate stating the date of birth

B. Hindu Undivided Family (HUF)

• Affidavit by the Karta stating names, addresses, and father’s names of all coparceners
• Karta’s ID, address, and date of birth proof as for individual applicants

C. Companies Registered in India

• Certificate of Registration from the Registrar of Companies

D. Firms and Limited Liability Partnerships

• Registration Certificate from the Registrar of Firms or LLPs
• Partnership Deed

E. Trusts Registered in India

• Trust Deed or Certificate of Registration Number from Charity Commissioner

F. Associations of Persons

• Agreement or Certificate of Registration Number from Registrar of Co-operative Society, Charity Commissioner, or competent authority, or any government-issued document

G. Non-Indian Citizens

Identity Proof (submit any one):

• Passport, PIO/OCI Card, national or citizenship Identification Number or TIN (attested as required)

Address Proof (submit any one):

• Passport, PIO/OCI Card, national or citizenship Identification Number or TIN (attested as required), bank statement from residential country, NRE bank statement, resident certificate, FRO registration certificate, Indian VISA and appointment letter.

These documents must accompany the PAN application form to validate the applicant's identity, address, and date of birth, ensuring a smooth verification process.

Consequences of Not Having a PAN Card

As mentioned above, not having a PAN Card can have several consequences and limitations, including:

• Can't do transactions over Rs 50,000.
• Needed for property deals.
• Can't file Income Tax Returns.
• Credit card/loan applications may get rejected without it.

So, we recommend speaking to our experts to get your PAN card application started today!

How to Apply for PAN Card?

Applying for a PAN card can be conveniently done through two primary methods: online and offline.

Online Application

The online process involves visiting the official websites authorized by the Income Tax Department, such as the NSDL (National Securities Depository Limited) or the UTIITSL (UTI Infrastructure Technology And Services Limited). Applicants can fill out the form, upload necessary documents, and pay the application fee digitally.

Offline Application

For the offline mode, applicants need to download or collect the PAN application form (Form 49A for Indian citizens or Form 49AA for foreign nationals) from an authorized PAN agency. After filling out the form and attaching the required documents, it can be submitted to the nearest PAN application center.

At IndiaFilings, our experts are equipped to assist you through both processes, ensuring that your PAN application is seamless and error-free.

Why Choose IndiaFilings for Your PAN Card Application?

At IndiaFilings, we understand the importance of having a PAN card for various financial and legal transactions. Whether you're an individual, a company, an NRI, or any other entity, obtaining a PAN card is essential. Our team of experts is well-prepared to assist you through both the online and offline application processes.

We provide comprehensive guidance on form filling, document submission, and any other related requirements, making your PAN card application hassle-free.

Let IndiaFilings experts simplify your PAN application process today!