PAN Card – What is PAN?, Eligibility, Types, Download Pan, Uses

May 17, 2023

12 min read

All taxpayers in India, are mandatorily required to furnish their Permanent Account Number (PAN). So, it is compulsory to obtain a PAN card because it should be necessarily quoted in all communications with the Income Tax Department.

What is a PAN Card?

The income tax department of India issues a laminated card which states the unique Permanent Account Number (PAN) and other identity details of any person who has applied to obtain a PAN Card.

A PAN number is a unique, 10 digit alphanumeric code that is used to club all transactions of an individual with the IT department. These transactions involve tax payments, TDS/TCS credits, etc.

Structure of a PAN Number

Character(s) of the PAN Number	What does it represent?
First Three Characters	Alphabetical series that run from AAA to ZZZ
Fourth Character	It represents the status of a PAN holder. For example, “P” represents an Individual, “F” represents a firm.
Fifth Character	Initial letter of the PAN holder’s last name
Next four characters	Numerical series running from 0001 to 9999
Last character	An alphabetic check digit

Advantages of a PAN Card

Necessary for all communications and payments to and from the Income Tax Department of India

To claim a tax refund, pay tax, submit tax deducted at source or tax collected at source, etc. you need to have a unique PAN number.

Valid Identity Proof

A PAN card qualifies as a valid identity proof all across the country. It contains all important details such as name, date of birth, photograph, signature, etc.

Enables verification of payments

A PAN card ensures that all of your payments will be clubbed under your PAN number so, it becomes easier to verify your payments.

PAN card is mandatory for certain financial transactions

PAN card is necessary for certain financial transactions, for example, the sale and purchase of vehicles other than two-wheelers, applying for a credit or debit card, opening a Demat account with SEBI, etc.

Registration of Businesses

An entity such as a company, a firm, a HUF, etc. cannot register their businesses without a PAN card.

Eligibility to apply for a PAN Card

PAN cards can be applied by individuals, HUFs, companies, institutions, NRIs and anyone who is liable to pay taxes in India.

Types of PAN Cards

Individual
HUF-Hindu undivided family
Company
Firms or Partnerships
Trusts
Society
Foreigners

PAN Card for Individuals – Can be applied through form 49A by any resident of India including students and minors.
PAN Card for Non-Resident Individuals – They too have to submit form 49A and can be eligible to apply for the same if they pay taxes in India.
PAN Card for foreign entities paying tax in India – Any company registered outside India but pays taxes in India can avail of a PAN Card by filling out form 49AA.
PAN Card for OCI and NRE – Overseas Citizens of India and Non-Resident Entities can also apply for a PAN Card through form 49AA
PAN Card for Indian Companies – Firms and companies can also apply for a PAN Card for tax-related transactions.

Other who can obtain a PAN card?

An individual
Association of Persons (AOP)
Body of Individuals (BOI)
Trust
A company
A firm
Hindu undivided family (HUF)
Government
Local Body
Artificial Judicial Persons

How to Apply for a PAN Card?

Application for a PAN card can be submitted either online or offline.

Offline PAN Application:

Step 1: An applicant needs to download a copy of a PAN card form from the NSDL or UTIITSL website – https://incometaxindia.gov.in/forms/income-tax%20rules/103120000000007917.pdf . The same can also be collected from UTIITSL agents & Instructions to fill out the form – https://tin.tin.nsdl.com/pan/Instructions49A.html

Step 2: The applicant needs to fill out this form and submit the relevant documents to the NSDL office along with a processing fee.

Step 3: The PAN card will be delivered to the address mentioned in the application within 15 working days.

Online PAN Application:

Step 1: Visit the NSDl or UTIITSL website for PAN application online – https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html

Step 2: Click on “New PAN”

Step 3: Individuals need to fill in PAN form 49A.

Step 4: The applicant needs to deposit a processing fee.

Step 5: The final page will be generated after the payment, and this will consist of a 15-digit acknowledgment number.

Step 6: The acknowledgment form shall be sent to NSDL online along with all relevant documents.

Step 7: Upon verification of the application and documents, the physical card would be dispatched within 15 working days.

Required PAN Card Documents

An individual applicant needs to submit identity proof (such as an Aadhar Card, Voter Id Card, Arm’s Card, Pension card with photograph, Central Government’s Health Scheme Card, etc.), address proof (such as Aadhar Card, electricity bills, bank statement, voter id card, water bill, postpaid mobile phone bill, driving license, passport, etc.) date of birth proof (such as matriculation certificate, driving license, passport, etc.)

PAN card forms

There are two types of PAN card forms i.e. Form 49A and Form 49AA.

Form 49A: Form 49A is supposed to be filled by Indian nationals. Minors and students can also apply for a PAN card by filling out form 49A.

Form 49AA: Form 49AA is supposed to be filled by foreign nationals who wish to obtain a PAN card in India. Both forms contain details like the Assessing Officer (AO) code, name, address, e-mail id, phone number, etc. of the applicant.

How to update or edit PAN card details?

The applicant can visit the official website of NSDL and select the update PAN section. Then he must select “correction” and update the details to be changed on PAN card.

A copy of POI or POA documents is required to do the needful

The DO’s and DON’T’s for updating PAN details

The form must be filled only in capital letters
All the fields must be properly filled.
Updating the correct mobile number is mandatory
Preferably the form should be filed in English but an option to fill in the local language is also provided.
Important to add salutations to the name
The complete address should be updated
Signatures and thumbprints should be thoroughly checked and be done properly
If there is any kind of misleading information, incorrect information or inconsistency in the form, it will result in a cancellation

What if the PAN card is lost?

In case the Pan card is lost the applicant can file for a duplicate Pan card online by requesting for the same through the official website of SDL and filling in the form 49A for citizens and 49AA for foreigners. A payment needs to be made online after which the Pan card will be issued within 45 days. The PAN card is valid for a lifetime.

Why does an individual need a PAN Card:

PAN is a unique identification number that enables tax-paying in India and can act as the following

Mandatory for Filing Taxes
Proof of Identity
Eligibility to open and operate Bank Accounts
Financial transactions
Proof of Address
Registration of Business
Phone Connection
Gas Connection
Mutual Funds

Uses of PAN card in Financial Transactions:

While paying taxes
When registering a new business
Financial transactions like:
Sale or purchase of immovable property above Rs.5 lakh
Payments made to fulfill travel requirements that is above Rs.25,000
Sale or purchase of a vehicle besides a two-wheeler
Payments made towards hotels and restaurants above Rs.25,000
Payments towards bank deposits of more than Rs.50,000
Purchase of shares worth Rs.50,000 or more
Purchase of bonds of more than Rs.50,000
Purchase of insurance policies of more than Rs.50,000
Purchase of mutual funds
Purchase of jewelry of more than Rs.5 lakhs
To send money out of India.
Any transfer of funds from NRO or NRE account

What is the consequence if the citizen or tax-payer does not have a Pan Card

Flat 30% tax on your earnings and wealth,
The applicant won’t be able to purchase a vehicle, open a bank account, buy an immovable property that is above Rs. 10 lakhs, etc.
Businesses won’t be able to conduct major functions like financial activities and procurement.

How is PAN card allotted?

PAN center verified and analyses the form which is filled for the applicant of the Pan card.
assess the application details. The details are further cross-verified by the Assessing Officers against the details of existing PAN Cardholders in the database.
If there is no record of a previous PAN given to the applicant, then the request is processed.
A PAN is allotted to a person as per his classification as a taxpayer.

PAN for e-KYC has huge benefits for the applicant and government as well

The e-KYC process is paperless
PAN cardholders can share information within minutes, thus eliminating long waiting periods
Information shared between the user and service provider is through secured channels.
These documents cannot be forged
Information shared by e-KYC contains authenticated data
It is legal for the stakeholders involved in the transaction.
The entire system is paperless making it a cost-effective and time-saving process.

e-PAN Card – Eligibility & Application Process

PAN Card Status Online by PAN Number, Name, DOB and Coupon Number

e-PAN Card – How to Download & Reprint Duplicate e-PAN Card Online through NSDL/UTIITSL

PAN Card Correction & Update – How to Change Name, Address in PAN Card

PAN Card Details Search By Name, DoB, PAN Number & Address

PAN Card Apply Online: How to Apply PAN Card Online in 5 Minutes

How to Link Aadhaar with PAN Card Online by Using e Filing Website, SMS

Aadhar Card Status

Aadhaar Card Download

Instant PAN Card through Aadhaar

PAN Card Mistakes – To Avoid

How to Link Aadhaar with PAN Card

PAN Card FAQs:

1. Is it possible to edit details in a PAN card?

Yes, one can make changes in PAN card. In order to do that, you are required to fill a PAN card correction form.

2. Can a minor apply for a PAN card?

Yes, minors are eligible to apply for a PAN card. A representative assessee can represent a minor for the same.

3. Are foreign nationals required to obtain a PAN in India?

Any person or a group of persons undertaking business in India is required to obtain a PAN number. This is mandatory because every business has to file tax returns.

4. What is the fee for PAN card application?

While applying for a PAN card, one needs to submit a processing fee i.e. Rs. 93 (excluding GST) for delivery of the card to Indian address and, Rs. 864 (excluding GST) for delivery to a foreign address. (Such prices are subject to change as per discretion of the Income Tax Department).

5. Do I need to furnish an income statement for obtaining PAN?

No, income statements are not required for obtaining a PAN. You need to submit an identity proof, address proof and date of birth proof.

6. What is the validity of a PAN card?

A PAN card once obtained, has a life-long validity. PAN Card is not affected by changes in the database of an individual. However, such changes must be notified to the Income Tax department in the form ‘Request for New PAN/Correction in PAN’

7. Can a person obtain more than one PAN?

No, obtaining more than one PAN attracts a penalty of Rs. 10,000 under the Income Tax Act. If any person has been allotted more than one PAN, the additional PAN cards must be surrendered immediately.

8. Is it mandatory for a female to enter her father’s name on the PAN card and can it be replaced by her husband’s name later?

The only name a female, whether married, unmarried, divorcee or widow, is her father’s and not her husband’s in any case.

9. What are the different ways, through which PAN card information can be obtained?

PAN card details for any person can be obtained by entering the following information: • Pan Card Number • Name • Date of Birth • Full Address • Mobile Number

10. Is it mandatory to link PAN with Aadhar?

Yes, it helps in identifying one person with one PAN card and prohibits the issuance of multiple PAN cards to the same person. This is further helpful in tax filling if the citizen of India has an Aadhar card assigned to him.

PAN Card News

PAN Card is mandatory for certain specific withdrawals and deposits: A New Indian Income Tax rule

PAN Card and Aadhaar cards have been made mandatory for particular withdrawals and deposits. Earlier the bank should ensure that the exceeded transactions should have PAN but now the bank should keep the PAN number in the records and should inform the Income tax department of any large amount transactions.

There was a rule that a PAN number is mandatory for above 50,000 cash withdrawals in a single day.
Now every person should reveal their PAN number if they exceed above 2 million cash withdrawals and deposits in a financial year from one or more bank accounts.
The person should pay a penalty of 100 percent of the money received if they have done transactions above the limits.
This rule has been applicable since May 26 and it has been introduced to reduce financial frauds and money crimes.

So, every person should have a PAN account number and if not should apply for it seven days prior to the transactions.

News Updated Date: 01st September 2022