The Income Tax Department in India issues PAN cards to all Indian citizens and anyone else who applies for it. The PAN Card serves a variety of purposes. Even those who already have an Income Tax PAN card must be aware of its uses and significance. To this effect, Housing News answers every possible question you may have about your PAN card.
What is a PAN card?
AÂ Permanent Account Number (PAN) is a 10-digit alphanumeric number. It is issued in the form of a laminated card by the Income Tax Department.
See also:Â PAN card: Your complete guide to its uses and application process
What is the use of PAN?
PAN acts as an identifier for the ‘person’ with the tax department. PAN helps the income tax department keep track of the financial transactions of taxpayers in India.
Who must have a PAN card?
- All existing taxpayers who are required to furnish a return of income, even on behalf of others, must obtain PAN.
- Any person carrying on any business or profession whose total sales, turnover or gross receipts exceed or are likely to exceed Rs 5 lakh in any
- Any person who intends to enter any financial transaction where quoting PAN is mandatory must obtain PAN.
What are the types of PAN cards?
Based on its purpose, the PAN can be of the following types:
- PAN card for individual taxpayers
- PAN card for business units or partnership firms
- PAN card for organisations and companies
- PAN card for cooperative societies and trusts
Is PAN an address proof?
Since the PAN card shows no address, it is not considered proof of residence.
Is a PAN card accepted as identity proof?
Yes, a PAN card is accepted in India as identity proof.
Is PAN a business identification number?
Yes, the income tax PAN card is a business identification number along with nearly 20 other central- and state-level business identification numbers in India. Plans are afoot to make the PAN card the single business identification in the country.
Is PAN card a proof of Indian citizenship?
No, the PAN card is not proof of Indian citizenship.
What does a PAN look like?
A typical PAN is AFZPK7190K.
The first three characters are alphabetic series from AAA to ZZZ.
The fourth character represents the status of the PAN holder
(P stands for Individual, F for Firm, C for Company, H for HUF, A for AOP and T for TRUST).
The fifth character represents the first character of the PAN holder’s last name/surname.
The next four characters are sequential numbers from 0001 to 9999.
The last character is an alphabetic check digit.
What kind of transactions does the income tax department track through PAN?
The transactions tracked through a taxpayer’s PAN include tax payments, TDS/TCS credits, returns of income/wealth/gift/FBT, specified transactions, correspondence, etc.
Is it compulsory to quote PAN on the return of income?
Yes, it is compulsory to quote PAN on the return of income. A penalty of Rs 10,000 is levied in case of default.
Is it necessary to have PAN?
Quoting PAN is mandatory in the following situations:
- To file an income tax return
- To make any payments to the Income Tax Department
- Sale or purchase of immovable property valued at Rs 5 lakh or more
- Sale or purchase of a motor vehicle
- For bank deposits exceeding Rs 50,000
- Post Office Savings Bank deposit exceeding Rs 50,000
- For a contract of a value exceeding Rs 1 lakh for the sale or purchase of securities
- To open a bank account
- To apply for a telephone connection
- To make a one-time payment to hotels and restaurants for an amount exceeding Rs 25,000
- For cash payment for the purchase of bank drafts/pay orders/banker’s cheques for an amount aggregating Rs 50,000 or more in a day
- Cash deposits aggregating Rs 50,000 or more with a bank during a day
- Cash payment for travel to a foreign country for an amount exceeding Rs 25,000
Where to apply for PAN?
You can apply with the UTI Investor Services Ltd (UTIISL) and the National Securities Depository Limited (NSDL) to get a PAN card.
Which form is used to apply for PAN?
Form 49A (for Indians) and Form 49AA (for foreign nationals) are used to apply for PAN cards.
What documents are needed to apply for a PAN card?
Documents required for PAN card online application for Indian citizens include:
| Proof of Identity | Proof of Address | Proof of birth and age |
| Voter ID card | Voter ID with photograph | Birth certificate issued by the municipal authority or registrar |
| Aadhaar card | Aadhaar card | Pension payment order |
| Ration card with photo | Latest electricity bill | Marriage certificate issued by the Registrar of Marriage |
| Passport | Spouse and individual passport | Passport |
| Driving license | Driving license | Driving license |
| Arm’s license | Latest landline telephone bill | Matriculation certificate |
| Photo identity card issued by apex government, state government or by Public Sector Undertaking | Latest broadband connection bill | Central or state government-issued domicile certificate |
| Central government health scheme card | Post office passbook with person’s address | Magistrate signed date of birth affidavit |
| Bank certificate with a person’s attested photo and bank account number | Bank account statement | Any document that serves as proof of birth date |
| Pensioner card with applicant’s photograph | Credit card statement | |
| Certificate of identity signed by a Member of Parliament, Member of the Legislative, Assembly, or Municipal Councillor | Domicile certificate issued by the government body | |
| Any of the above-mentioned documents can serve as identification proof | Allotment letter | |
| If applying for minors, the above-mentioned documents of parents or minors can serve as identification proof | Latest property tax assessment order |
Documents required for foreign PAN applicants
| Proof of Identity | Proof of Address | Proof of birth and age |
| Passport | Passport | Passport |
| Aadhaar card | Aadhaar card | Aadhaar card |
| Voter Id card | Voter Id card | Voter Id card |
| Driving license | Driving license | Driving license |
| Ration card | Post office passbook | Matriculation certificate |
| Pensioner card | Post office passbook | Photo identity card issued by apex or state government |
| Photo identity card issued by apex or state government | Post office passbook with applicant’s address | Birth certificate |
| Domicile certificate | Domicile certificate |
Additional documents required for foreign PAN applicants
- Passport copy
- Overseas address proof
- Two overseas bank statement
- Two passport-size photos
What is the PAN card application fee?
You have to pay Rs 93 (excluding GST) to apply for a PAN card in India. Those applying for a PAN card from outside the country have to pay Rs 864Â (excluding GST).
How to pay the PAN card application fee?
You can pay the PAN application charges by credit/debit card, demand draft or internet banking.
Is there any TATKAL facility for PAN allotment?
Yes, there is a tatkal facility for PAN allotment known as instant PAN.
What is an ePAN?
An ePAN is a digitally signed, electronic PAN card. It is proof of allotment of your PAN card. In other words, an ePAN is a PAN card in a PDF format.
What is the income tax PAN card customer care number?
In case you have a complaint or a question about PAN, call the numbers mentioned below per the city you live in:
| City | PAN card customer care number |
| Mumbai |
|
| Chennai |
|
| New Delhi |
|
| Kolkata |
|
See also:Â What is the PAN card customer care number?
What is the AO code on the PAN card?
The AO code or the Assessing Officer Code is needed to identify a PAN card holder’s jurisdiction in India.
Is it compulsory to link Aadhaar with a PAN card?
Yes, it is compulsory to link your Aadhaar with your PAN card by March 31, 2023, to carry out all financial activities in India.
Read also:Â What is the last date to link Aadhaar with PAN?
Can I apply for a PAN card offline?
Yes, you may apply for a PAN Card by visiting PAN centres. Fill in the PAN application form and submit it with two passport-size photographs, all supporting documents and processing fees.
How many days does it take for a PAN card to be delivered after application?
Your PAN card will be delivered within 15 days of the date of submission of the application form.
