Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department, to any “person” who applies for it or to whom the department allots the number without an application.
PAN enables the department to link all transactions of the “person” with the department. These transactions include tax payments, TDS/TCS credits, returns of income/wealth/gift/FBT, specified transactions, correspondence, and so on. PAN, thus, acts as an identifier for the “person” with the tax department.
PAN was introduced to facilitates linking of various documents, including payment of taxes, assessment, tax demand, tax arrears etc. relating to an assessee, to facilitate easy retrieval of information and to facilitate matching of information relating to investment, raising of loans and other business activities of taxpayers collected through various sources, both internal as well as external, for detecting and combating tax evasion and widening of tax base.
Why PAN is required?
In General every person* who is required to furnish income tax return must need a Valid PAN number. However per section 139A of The Income Tax Act, 1961 direct and lays down framework for PAN e.g, who is required to apply for PAN, who else can apply for PAN, who will allot PAN, transactions where PAN is required to be quoted, use of PAN in TDS certificates and TDS returns, that one person can have only one PAN and the manner of applying for PAN.
Transaction for which PAN is required
It is mandatory to quote PAN on return of income, all correspondence with any income tax authority. From 1 January 2005 it will be mandatory to quote PAN on challans for any payments due to Income Tax Department.
It is also compulsory to quote PAN in all documents pertaining to the following financial transactions :-
(a) sale or purchase of any immovable property valued at five lakh rupees or more;
(b) sale or purchase of a motor vehicle or vehicle, [the sale or purchase of a motor vehicle or vehicle does not include two wheeled vehicles, inclusive of any detachable side-car having an extra wheel, attached to the motor vehicle
(c) a time deposit, exceeding fifty thousand rupees, with a banking company ;
(d) a deposit, exceeding fifty thousand rupees, in any account with Post Office Savings Bank;
(e) a contract of a value exceeding one lakh rupees for sale or purchase of securities; (f) opening a bank account;
(g) making an application for installation of a telephone connection (including a cellular telephone connection);
(h) payment to hotels and restaurants against their bills for an amount exceeding twenty-five thousand rupees at any one time ;
(i) payment in cash for purchase of bank drafts or pay orders or banker’s cheques for an amount aggregating fifty thousand rupees or more during any one day;
(j) deposit in cash aggregating fifty thousand rupees or more with a bank during any one day;
(k) payment in cash in connection with travel to any foreign country of an amount exceeding twenty-five thousand rupees at any one time.
Understand PAN
A typical PAN is AAAPK7190K.
First three characters i.e. “AAA” in the above PAN are alphabetic series running from AAA to ZZZ
Fourth character of PAN i.e. “P” in the above PAN represents the status of the PAN holder. “P” stands for Individual, “F” stands for Firm, “C” stands for Company, “H” stands for HUF, “A” stands for AOP, “T” stands for TRUST etc.
Fifth character i.e. “K” in the above PAN represents first character of the PAN holder’s last name/surname.
Next four characters i.e. “7190” in the above PAN are sequential number running from 0001 to 9999.
Last character i.e. “K” in the above PAN is an alphabetic check digit.
Forms required for PAN application?
Form No. 49A – NEW PAN FOR INDIAN CITIZEN
Form No. 49AA- NEW PAN FOR FOREIGN CITIZEN
How to Apply for Pan?
PAN card can be apply in any mode either offline or offline.
Application for fresh allotment of PAN can be made through Internet. Further, requests for changes or correction in PAN data or request for reprint of PAN card (for an existing PAN) may also be made through Internet.
Online application can be made either through the portal of NSDL
or portal of UTITSL
(http://www.utitsl.co.in/utitsl/uti/newapp/newpanapplication.jsp)
Charges for PAN
Fee for processing PAN application: 105 ( 93 + service tax) for PAN card to be dispatched in India. For dispatch outside India, fee is 971 (including service tax) i.e. there are no additional charges. Payment of application fee can be made through credit/debit card or net-banking. Once the application and payment is accepted, the applicant is required to send the supporting documents through courier/post to NSDL/UTITSL. Only after the receipt of the documents, PAN application would be processed by NSDL/UTITSL
Documents required
Applicant is required to submit Proof of Identity, Address and Date of birth (applicable for Individuals & Karta of HUF) and in case of online application online acknowledgment receipt is also required.
| Document acceptable as proof of identity, address and date of birth as per Rule 114 (4)of Income Tax Rules, 1962 |
| Proof of Identity | Proof of Address | Proof of date of birth |
| Indian Citizens (including those located outside India) |
| Individuals & HUF |
(i) Copy of- Aadhaar Card issued by the Unique Identification Authority of India; or
- Elector’s photo identity card; or
- Driving License; or
- Passport; or
- Ration card having photograph of the applicant; or
- Arm’s license; or
- Photo identity card issued by the Central Government or State Government or Public Sector Undertaking; or
- Pensioner card having photograph of the applicant; or
- Central Government Health Service Scheme Card or Ex-Servicemen Contributory Health Scheme photo card
(ii) Certificate of identity in Original signed by a Member of Parliament or Member of Legislative Assembly or Municipal Councilor or a Gazetted officer, as the case may be (in prescribed format); or (iii) Bank certificate in Original on letter head from the branch(along with name and stamp of the issuing officer) containing duly attested photograph and bank account number of the applicant (in prescribed format) | (i) Copy of- Aadhaar Card issued by the Unique Identification Authority of India; or
- Elector’s photo identity card; or
- Driving License; or
- Passport; or
- Passport of the spouse; or
- Post office passbook having address of the applicant; or
- Latest property tax assessment order; or
- Domicile certificate issued by the Government; or
- Allotment letter of accommodation issued by Central or State Government of not more than three years old; or
- Property Registration Document; or
(ii) Copy of following documents of not more than three months old - Electricity Bill
- Landline Telephone or Broadband connection bill
- Water Bill
- Consumer gas connection card or book or piped gas bill
- Bank account statement or as per note 2
- Depository account statement
- Credit card statement
(iii) Certificate of Address in Original signed by a Member of Parliament or Member of Legislative Assembly or Municipal Councilor or a Gazetted officer, as the case may be (in prescribed format) (iv) Employer certificate in original (in prescribed format). | Copy of- Birth Certificate issued by the Municipal Authority or any office authorized to issue Birth and Death Certificate by the Registrar of Birth and Deaths or the Indian Consulate as defined in clause (d) of sub-section (1) of section 2 of the Citizenship Act, 1955 (57 of 1955); or
- Pension payment order; or
- Marriage certificate issued by Registrar of Marriages; or
- Matriculation Certificate; or
- Passport; or
- Driving License; or
- Domicile Certificate issued by the Government; or
- Affidavit sworn before a magistrate stating the date of birth
|
Note:
1. In case of Minor, any of the above mentioned documents as proof of identity and address of any of parents/guardians of such minor shall be deemed to be the proof of identity and address for the minor applicant.2. For HUF,
(a) An affidavit by the karta of the Hindu Undivided Family stating the name, father’s name and address of all the coparceners on the date of application; and (b) Copy of any document applicable in the case of an individual specified above, in respect of karta of the Hindu undivided family, as proof of identity, address and date of birth. | Note:
1. Proof of Address is required for address mentioned in item no.7.2. In case of an Indian citizen residing outside India, copy of Bank Account Statement in country of residence or copy of Non-resident External (NRE) bank account statements (not more than three months old) shall be the proof of address. | |
| Proof of identity | Proof of Address |
| Company registered in India |
Copy of
a) Certificate of Registration issued by the Registrar of Companies. | Copy of
a) Certificate of Registration issued by the Registrar of Companies. |
| Firm |
Copy of
a) Partnership deed; or
b) Certificate of Registration issued by the Registrar of Firms | Copy of
a) Partnership deed; or
b) Certificate of Registration issued by the Registrar of Firms |
| Limited Liability Partnership |
Copy of
a) Certificate of Registration issued by the Registrar of LLPs. | Copy of
a) Certificate of Registration issued by the Registrar of LLPs. |
| Trust |
Copy of
a) Trust deed; or
b) Certificate of registration number issued by Charity Commissioner. | Copy of
a) Trust deed; or
b) Certificate of registration number issued by Charity Commissioner. |
| Association of persons (other than Trusts) or Body of Individuals or Local authority or Artificial Juridical Person |
Copy of
a) Agreement; or
b) Certificate of registration number issued by charity commissioner or registrar of cooperative society or any other competent authority; or
c) Any other document originating from any Central or State Government Department establishing identity and address of such person. | Copy of
a) Agreement; or
b) Certificate of registration number issued by charity commissioner or registrar of cooperative society or any other competent authority; or
c) Any other document originating from any Central or State Government Department establishing identity and address of such person. |
How to know the status of PAN application?
Status of new application can be checked online through NSDL SIDE with acknowledgement number or with the following details
Date of birth/Incorporation date and Name of the applicant
Also PAN staus can be cheked through UTI website with CUPON NUMBER
Can a person obtain or use more than one PAN?
Obtaining or possessing more than one PAN is against the law, for which penalty of Rs.10,000/- may be imposed
Is there any TATKAL facility for allotment of PAN?
NO, There is no such facilities
Is father’s name compulsory?
NO,
CBDT has revised PAN Application form 49A and 49AA wef from 16.05.2014 vide its notification no. 26/2014 , Dated- 16-5-2014. Revised Form 49A and 49AA provides option to get printed Mothers Name on PAN card. So those applying for New PAN card or for revised PAN card have the option to get printed on their PAN card printed the name of his/her mother.But applicant can select only one option, he /she cannot have the name of both mother and father printed on PAN card. In case Applicant do not exercise his/her option than by default Father’s name will get printed on PAN card.
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