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PAN Card- What is PAN, How to apply Pan card online

A PAN card, short for Permanent Account Number card, is a unique 10-character alphanumeric identification number issued by the Income Tax Department of India. This card serves as a crucial document for individuals, companies, Hindu Undivided Families (HUFs), and other entities. It not only helps in tracking financial transactions but also plays a significant role in preventing tax evasion. In this comprehensive guide, we will explore the importance of PAN cards, eligibility criteria, and the step-by-step process of applying for a PAN card online and offline.

What is a PAN Card?

A PAN card is a vital document that contains essential personal details of the cardholder, including their full name, photograph, father's name (mother's name in case of a single parent), date of birth, PAN number, and signature. This unique identification number enables the Income Tax Department to monitor various financial transactions such as depositing money in fixed deposit accounts, buying or selling property, and conducting transactions above a certain limit. Additionally, a PAN card is required for opening bank accounts, filing income tax returns, and conducting specified financial transactions.

Significance of PAN Card

The PAN number acts as your identity in front of the Income Tax Department. It is a 10-digit number that is mentioned on your PAN card and is used for various financial activities. The Income Tax Department mandates the possession of a PAN card in several circumstances, including:

  1. Income Tax Liability: If your income exceeds Rs. 2,50,000/- in a financial year, you are liable to pay income tax.
  2. Tax Deducted at Source (TDS): If TDS is deducted from your income, you are required to have a PAN card.
  3. Professionals and Businessmen: If you are a professional or businessman with gross receipts exceeding Rs. 5 lakhs in a year, you need a PAN card.
  4. Importers and Exporters: Individuals or entities involved in import or export activities and are required to obtain an Import Export Code must possess a PAN card.
  5. Charitable Trusts: Charitable trusts that are required to furnish returns under Section 139(4A) of the Income Tax Act must have a PAN card.
  6. Specified Financial Transactions: Various financial transactions, such as opening a bank account, obtaining a credit card or debit card, purchasing life insurance policies, investing in mutual funds, and buying or selling immovable property or securities, require quoting of PAN.

Apart from the Income Tax Department, other institutions, such as banks and insurance companies, also mandate the quoting of PAN for certain transactions exceeding specified limits.

Eligibility to Apply for a PAN Card

Individuals, companies, non-resident Indians (NRIs), and anyone residing in India are eligible to apply for a PAN card. Whether you are an Indian citizen or a foreign citizen, the application process is the same. However, foreign citizens need to fill out Form 49AA instead of Form 49A.

Types of PAN Card Forms

There are two types of PAN card application forms:

  1. Form 49A: This form is for Indian citizens who want to apply for a PAN card or make changes or corrections to their existing PAN card details.
  2. Form 49AA: Foreign citizens who wish to apply for a PAN card can fill out this form.

Additionally, for companies that have not been registered under the Companies Act, 2013, the application for a PAN card can be made using Form No.INC-7 specified under Section 7(1) of the said Act for company incorporation.

Applying for a PAN Card Online

The online application process for a PAN card can be done through the NSDL or UTIITSL websites. Follow the steps outlined below:

NSDL Website

  1. Visit the official website of NSDL and select the PAN card application form for Indian citizens.
  2. Fill in the required personal and contact details, such as name, address, phone number, and email ID.
  3. Pay the application fee through credit/debit card, demand draft, or net banking.
  4. Once the payment is successful, an acknowledgment will be displayed and sent to your email ID.
  5. Send the required documents to the NSDL office in Pune via courier or post.
  6. The PAN application will be processed by NSDL, and upon verification of the application and documents, the PAN card will be issued within 15 days.

UTIITSL Website

  1. Fill the PAN card application form available on the UTIITSL website.
  2. Pay the application fee, and an acknowledgment will be displayed and sent to your email ID.
  3. Send the required documents to the UTIITSL office within 15 days of online form submission.
  4. UTIITSL will process the application and documents and issue the PAN card within 15 days.

Applying for a PAN Card Offline

If you prefer the offline application method, follow the steps below:

  1. Download Form 49A or 49AA from the official websites of NSDL or UTI or collect a physical copy from any authorized PAN agency.
  2. Fill in the form with the required personal and contact details.
  3. Attach the necessary documents, including proof of identity, address, and date of birth.
  4. Pay the application fee through demand draft or by cash at authorized PAN agencies.
  5. Submit the application form, documents, and fee at any authorized PAN agency or send them by post to the nearest NSDL or UTI office.
  6. Note down the acknowledgment number given by the authorized agency for future reference.
  7. You can track the status of your PAN card application online through the NSDL or UTI website using the acknowledgment number. It usually takes around 15 to 20 days to receive your PAN card.

Instant PAN Facility

The Finance Minister has introduced the "Instant PAN" facility, allowing individuals to obtain a PAN card instantly by quoting their Aadhaar number. This facility is available free of cost and can be availed within minutes. To know more about this facility, visit the Income Tax Department's official website.

Lost or Misplaced PAN Card

In case you have lost your PAN card, there is no need to apply for a new one. Instead, you can apply for re-issuance or reprinting of your PAN card. Submit a valid ID, address, and date of birth proof, along with an attested photocopy of the old PAN card, to the Income Tax Department. Applying for a duplicate PAN card is a simple process, and the department is responsible for issuing PAN cards.

Updating PAN Card Details

If you need to correct any mistakes or update your PAN card details, you can do so by filling out a request for re-issue of a PAN card. Select the appropriate option on the application form and provide the correct documents as proof of the changes or corrections.

Contraventions and Penalties

Failure to comply with provisions related to PAN can lead to penalties under Section 272B of the Income Tax Act, 1961. The penalties include:

  1. Not obtaining a PAN when required
  2. Quoting an incorrect PAN knowingly
  3. Providing an incorrect PAN to a person liable to Tax Deducted at Source (TDS)
  4. Providing an incorrect PAN to a person liable to Tax collection at source (TCS)
  5. Holding two PAN cards

Each contravention can result in a penalty of Rs. 10,000 per default.

Conclusion

A PAN card is a crucial document for individuals, companies, and other entities in India. It serves as an identification number for various financial transactions, helps prevent tax evasion, and is required for opening bank accounts, filing income tax returns, and conducting specified financial transactions. Whether you choose to apply for a PAN card online or offline, the process is simple and well-defined. Ensure that you provide accurate information and submit the necessary documents to avoid any delays or complications. By obtaining a PAN card, you can fulfill your tax obligations and enjoy a hassle-free financial experience in India.

 

author

The Tax Heaven

Mr.Vishwas Agarwal✍📊, a seasoned Chartered Accountant 📈💼 and the co-founder & CEO of THE TAX HEAVEN, brings 10 years of expertise in financial management and taxation. Specializing in ITR filing 📑🗃, GST returns 📈💼, and income tax advisory. He offers astute financial guidance and compliance solutions to individuals and businesses alike. Their passion for simplifying complex financial concepts into actionable insights empowers readers with valuable knowledge for informed decision-making. Through insightful blog content, he aims to demystify financial complexities, offering practical advice and tips to navigate the intricate world of finance and taxation.

Frequently Asked Questions

A PAN card typically contains the holder's name, PAN number, date of birth (in the case of individuals), and a photograph.

A PAN card, or Permanent Account Number card, is a unique 10-character alphanumeric identifier issued by the Income Tax Department of India. It is essential for various financial transactions, including filing income tax returns, opening bank accounts, and conducting high-value transactions.

Any individual or entity, including residents, non-residents, minors, and foreign nationals, who intends to engage in financial transactions in India or is required to file income tax returns, is eligible to apply for a PAN card.

One can apply for a PAN card online by visiting the official website of the Income Tax Department of India or authorized PAN service providers. The application process typically involves filling out an online form, uploading supporting documents, and making the required payment.

The documents required to apply for a PAN card online include proof of identity, proof of address, and proof of date of birth (in case of individuals). Acceptable documents may include Aadhaar card, passport, voter ID, driving license, and birth certificate.

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