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What is the Purpose of Having a PAN?

All Indian tax-paying entities can avail a range of advantages through their Permanent Account Number (PAN).

·         Verification of personal details

·         Confirmation of residential address

·         Obligation to file taxes

·         Enrolment of business entity

·         Money transfers

·         Qualification for opening a bank account

·         Activation of telephone services

·         Acquisition of gas supply

·         Enhancing the advantages of having a PAN by fulfilling e-KYC protocol.

Starting from 1 September 2019, the utilization of Aadhaar instead of PAN has been made mandatory for taxpayers submitting their income tax returns in accordance with the union budget of 2019. As per the provisions outlined in the 2019 union budget, PAN numbers can be directly allocated by income-tax officers to individuals who choose to file their returns utilizing Aadhaar.

Seeking a PAN card registration

·         Go to the NSDL website and provide the required information, input the captcha code, and select submit. Keep track of the token number that is generated, and continue with the application for PAN.

·         Upon proceeding, you will be guided to a webpage that elucidates three distinct alternatives for submitting the mentioned proof documents. These alternatives encompass the digital submission method by means of e-KYC and e-sign, the option to submit scanned images through e-sign, or the possibility of delivering the physical documents to your closest branch (or dispatching them through registered post).

·         Afterward, you will be guided to a webpage where you shall be required to complete various sections with your personal details, including the origins of your earnings, residential address, and additional means of contacting you.

·         To proceed further, it is necessary to assign your Assessing Officer and determine your tax jurisdiction. All the required information can be found on the NSDL website, where you need to access the AO Code Search for PAN link. After that, simply click on next to access the document details.

·         Lastly, it is mandatory to furnish details pertaining to all the documents that have been submitted as evidence, coupled with the requirement of uploading a photograph and signature. Once these tasks are accomplished, simply click on the Submit button.

·         Once the application is sent and the fee is paid, a one-time password (OTP) will be sent to the mobile number associated with your Aadhaar number. By inputting the OTP, you will obtain a 15-digit acknowledgment number and a receipt.

·         Remember to print out this receipt, sign it, and send it via courier to the NSDL office within 15 days from the date of application. Do not forget to use capital letters when writing or printing the phrase APPLICATION FOR PAN-N-(15-digit acknowledgement number) on the envelope.

Important Facts to Keep in Mind when Applying for a PAN Card

·         Ensure the form is thoroughly completed and precisely filled in. Provide genuine documentation that proves your identity and current address.

·         Your signature must fit within the assigned area, while the photograph should display a recent and flawless image.

·         Make absolutely certain that the applicant's name is accurately spelled.

Steps to Rectify PAN Card Details

You have multiple options to rectify any mistakes found in your PAN Card details by means of the following methods:

For making corrections, there are two options available: online and offline.

·         In the online option, you have the choice to access the websites of NSDL or UTIITSL, where you can apply for correction by submitting the required documents.

·         Alternatively, in the offline option, you can download the form from the NSDL or UTIITSL website. After that, you need to submit the form along with the relevant documents to the nearest TIN facilitation centre.

What requirements must be met to qualify for a PAN Card?

The PAN Card application is open to all individuals living in India, regardless of their nationality or citizenship.

Here are the requirements for obtaining a PAN Card:

a) People

Residents of India who possess Indian citizenship

Indians currently living abroad

Non-Indian individuals residing within Indian territories

b) Enterprises and Corporations

Companies or firms that are officially recognized and certified in India

c) Trusts, Organizations, and Community Groups

Organizations in India that have achieved official recognition include registered trusts, associations, and societies.

d) Younger Individuals

It is possible for a minor to seek a PAN Card, however, it is necessary for them to go through the application process with the assistance of a guardian or parent.

 Tracking your PAN Card

You can conveniently monitor the progress of your PAN card application on the NSDL website by providing either your name or date of birth as submitted in the application form or utilizing the 15-digit acknowledgement number.

Connecting your bank account with your PAN card: steps to follow

You can adhere to the outlined procedure below in order to connect your bank account with your PAN Card number:

·         Fill out the appropriate form either online on your bank's website or in person at a local branch.

·         Include a photocopy of your PAN Card when you submit the form.

·         Upon completion of the verification procedure, your bank account will be successfully linked to your PAN Card.

Steps to Track the Progress of Your PAN Card Application

To track the progress of your PAN Card application, adhere to the provided instructions outlined below:

To inquire about the progress of your PAN Card application, please follow these steps:

1. Go to the NSDL or UTIITSL website.
2. Click on the 'Track PAN Card Status' option.
3. Choose the relevant application type, either 'New PAN Card' or 'Change/Correction in PAN Data'.
4. Enter the 15-digit acknowledgment number provided during your application.
5. Input your name and date of birth exactly as mentioned in the application.
6. Click on the 'Submit' button.
7. The screen will display the status of your PAN Card application. It will indicate whether your application is currently being processed, dispatched, or if there are any issues with it.

Different PAN Application Forms

Application for New PAN Card:

This form is intended for individuals who have yet to request a PAN Card and wish to acquire one.

Application for Correction or Modification of PAN Card Information:

This request is intended for individuals who possess a PAN Card but wish to amend the current data, including alterations to their name, date of birth, address, and more.

How to apply for a PAN card?

To initiate the PAN Card application procedure, kindly adhere to the given instructions:

1.      Go to the official NSDL or UTIITSL website.

2.      Choose the option 'Apply for new PAN Card' or 'Change/Correction in PAN Data', depending on your specific requirement.

3.      Select the appropriate application form based on your citizenship; Indian citizens should opt for Form 49A while foreign nationals should opt for Form 49AA.

4.      Ensure to accurately and comprehensively fill in the form with your personal and contact details, including name, date of birth, address, mobile number, email ID, and other necessary information.

5.      As per the instructions mentioned in the application form, submit the required documents such as identity proof, address proof, and photographs.

6.      Proceed to make the online payment for the application fee using a credit card, debit card, or net banking.

7.      Upon successful payment, you will be furnished with an acknowledgment receipt containing a unique 15-digit acknowledgment number.

8.      Print the receipt and affix two recent passport-sized photographs in the designated spaces provided.

9.      Finally, sign or thumb print the receipt in the designated area to complete the application process.

10.  Please ensure to include the required documents, such as proof of identity, proof of address, and proof of payment, together with the receipt.

11.  Kindly send the completed application by post or courier to the address provided in the acknowledgment receipt.

12.  Upon successful verification of your application, your PAN Card will be promptly dispatched to your registered address within a timeframe of 15-20 working days.

PAN Card Advantages:

·         The PAN card is a valuable document that can be used as proof of identity. One of the main reasons people need a PAN card is for taxation purposes.

·         If someone fails to link their PAN number to their bank account and earns an annual interest of over Rs. 10,000, they will face a deduction of 30% in TDS returns instead of the usual 10%.

·         Having a PAN linked to their bank account enables individuals to claim a tax refund if they have been subjected to excessive TDS deductions.

·         A Tax Registration Number (TRN) is required for a business and can only be obtained if it possesses a Permanent Account Number (PAN).

·         The ability for an individual or organization to engage in transactions related to the buying or selling of assets necessitates the possession of a PAN. This PAN must be mentioned in the sales or purchase agreement for any immovable property valued at Rs. 10 lakh or higher.

·         If cash payments exceeding Rs. 50,000 are made for foreign travel purposes, including purchases in foreign currencies, a PAN is required.

·         In addition, a PAN is necessary for time deposits made with the post office, co-operative banks, or non-banking financial companies. Furthermore, any deposits totaling Rs. 5 lakh or more annually will mandate the possession of a PAN.

·         To initiate the process of opening a savings or current account with any public, private, or co-operative bank, it is mandatory for an individual or company to have a bank account in their name. The only exception is the Pradhan Mantri Jan Dhan Yojana, which allows individuals to open a zero balance account using their voter card or any other valid identification.

·         A PAN card is also a prerequisite for any individual or entity wishing to open a Demat account, enabling them to hold shares in a dematerialized format.

·         If the amount to be paid for hotel and restaurant bills exceeds Rs. 50,000/-, it is mandatory for the payer to possess a PAN.

·         Quoting a PAN is necessary for cash payments totaling more than Rs. 50,000/ within a year, involving cash cards and pre-paid instruments.

·         Transactions involving the purchase or sale of goods and services over Rs. 2 lakh per transaction must be accompanied by a PAN.

·         For transactions exceeding Rs. 50,000/ in a day, PAN cards are required for bank drafts, pay orders, and banker's cheques.