PAN card is a 10-digit alphanumeric Unique photo identity card Number issued by Income Tax Department, Ministry of Finance (Government of India) to every card holder.With the increase in the development of the Internet, even the Government has started taking an online route. The Internet has made everything convenient and mandatory for all of us. The facility of online PAN card application was rolled out in the year 2003 by the Income Tax Department. And two agencies which were roped in for providing people with an online interface to all the citizens of India for applying for a PAN card or reprint/modification/correction of PAN card were National Securities Depository Limited (NSDL) and UTI Infrastructure Technologies and Services Limited (UTIITSL).
The online facility to apply for a PAN Card is one of the most convenient ways because it is hassle free as you just need to fill the application form with the correct details. It is an efficient and quick process. The two agencies, NSDL and UTIITSL, have provided with full-fledged instructions and guidelines for applicants to go through a smooth application process. The application of a PAN card can be categorized into two categories, one for the people in India or living in abroad and second for the foreigners who have business in India.
Contents
What is PAN (Permanent Account Number) card?
PAN Card is a Permanent Account Number which is allotted to every tax payer by the Income Tax Department. It is a 10-digit unique photo identity card which is issued under Central Board of Direct Taxes supervision. It is an identity proof of an individual which is mandatory for all the financial transactions including sale or purchase of assets, receiving the taxable salary, professional fees, buying or selling mutual funds and much more. A PAN card is used as a universal identification key for tracking the financial transactions in order to prevent the tax evasions. Throughout India, the PAN number remains unchanged regardless change in your address.
Who must apply for PAN Card?
People including the foreign nationals who earn taxable income in India or pays taxes here must apply for a PAN card. Also, people who run their businesses including consultancy, retail or services having total sales or gross receipts, turnovers exceeding the amount of 5, 00,000 INR of the previous financial year must apply for a PAN card.
Why having a PAN card is so important?
As we have already mentioned above that PAN card is the Permanent Account number which is issued to all individuals i.e. to every income tax payer by the Income Tax Department. It is one of an essential document which is required by some of the authorities for carrying forward the financial transactions smoothly.
- While opening a New Bank Account
No matter in which bank you are applying for a new account, whether a co-operative, public, private or any other, it is must produce a PAN card photocopy. However, it is not compulsory to provide a photocopy of a PAN card in the recently started financial inclusion program, PradhanMantri Jan DhanYojana (PMJDY). - While applying for a New Debit or Credit Card
While applying for a New Debit or Credit card, it is must quote your PAN card or else your application will be rejected. If once your credit card gets rejected, it can cause problems in future while getting a new credit card or a loan. - Insurance Payment
If you are planning to make a premium payment exceeding 50,000 in a year to any insurance company, then CBDT has a mandatory insurance policy to produce the PAN details. - While buying or selling a vehicle
If you are willing to buy or sell any vehicle for more than 5, 00,000 INR then it is mandatory to submit a copy of your PAN card. - While buying or selling a Property (immovable asset)
If you are willing to purchase or sell a property amounting more than 5, 00,000 INR then it is compulsory to mention the PAN card details. If you do not have PAN card, then it is impossible to purchase or sell a property. Also, if it is a joint property, then each person has to produce their PAN details. - Jewelry Purchase
If you are planning to buy high-value jewelry for more than 5, 00,000 INR then you have to provide your PAN details. - Fixed or Cash Deposit
If you are willing to open a fixed deposit cash account at any bank exceeding the amount of 50,000 INR, then it is mandatory to provide your PAN details. And if you fail to submit it, the TDS will get deducted by 20%, in a case of FD interest amount exceeds 10,000 INR. This value is higher than the current percentage of 10 (10%). - New Telephone Connection
The Government of India has informed all the telecom companies to get the PAN details for every cellular connection by each applicant. - Investing in Securities
All the investors have to produce their PAN card details for the transactions exceeding an amount of 50,000 INR for bonds/equities/debentures/mutual funds. - Opening Account at Broker
It is mandatory to submit your PAN details for opening an account at a broker. You need this account for trading in share market. Your application will get rejected if you fail to provide it.
Documents required applying for PAN Card
- Passport size color photo with white background
- Cheque/Demand draft of 107 INR (India) or 994 INR (International)
- Proof of address
- Proof of Identity
From the following list, attach any one Proof of Address and Proof of Identity
Proof of Address
- Electricity bill
- Telephone bill
- Depository account statement
- Credit card statement
- Bank account statement/bank pass book
- Rent receipt
- Employer certificate
- Passport
- Voters Identity Card
- Property tax assessment order
- Driving License
- Ration card
- Certificate of address signed by Member of Parliament or Member of Legislative Assembly or Municipal Councillor or Gazetted Officer.
Proof of Identity
- School leaving certificate
- Matriculation certificate
- Degree from a recognized educational institution
- Depository account statement
- Credit card statement
- Bank account statement/bank pass book
- Water bill
- Ration card
- Property tax assessment order
- Passport
- Voters Identity Card
- Driving License
- Certificate of identity signed by Member of Parliament or Member of Legislative Assembly or Municipal Councillor or Gazetted Officer
Please Note: The documents which are mentioned under Proof of Address no. 1 to 7 must not be more than six months old from the date of application.
How to Apply for PAN card Online?
You can use Form 49A or Form 49AA to apply for a PAN card in India. You can find more details on the official website www.incometaxindia.gov.in.
From the Income Tax Department or National Securities Depository Limited (NSDL) sites, you can easily find the PAN card offices locations nearby. To apply for a PAN card, you need to:
- Photo Identity proof
- Address proof
- Payment to be made through demand draft, cash or cheque
- The online processing fee can be paid via debit or credit card or net banking
We will brief you about the method on how to apply for a PAN card online. - Fill the Form 49A or 49AA as applicable
- After filling and moving forward, it will ask you to check the details provided by you and edit or confirm
- After checking and confirmation, an acknowledgment card will be displayed on-screen with a 15-digit unique number
- You must save or get a print of the acknowledgment card
- While applying for a PAN card, you must have your two recent pictures with white background and affix in the acknowledgment
- The sign and the thumb impression should be done in the space provided on the acknowledgment card
- Also, the thumb impression must be attested by a Gazette officer with an official stamp and seal
- After applying online, you must get the printout of your application and submit in the NSDL e-Gov along with the required documents
- If the user is MINOR, then you must mention MINOR on the top of your application
- The fees for a PAN card is 107 INR which can be paid through demand draft, cheque or credit/debit card if the communication is within India
- The charges of a PAN card is 994 INR which can be paid only through demand draft or credit/debit cards if the communication is outside India
- The cheque or demand draft must be in favor of ‘NSDL-PAN.’
- After the verification process, the update will be provided
Download PAN Card Forms Online
The PAN card forms can be downloaded from the official website www.incometaxindia.gov.in. The applicants can also fill and submit the application form through https://tin.tin.nsdl.com/pan/newpan.html.
PAN Card is an essential document for most of the people in India, especially the ones with taxable salaries or mutual funds. It is not just necessary for filing the tax returns, but it is even used as a unique identification number. At present, having a PAN card is essential for all of the Indian citizens whether having a taxable income or not.Adding to this, there are some legitimate websites which work as facilitators for PAN application. These sites help the applicants for collecting the documents and sending on your behalf to the NSDL or UTIITSL. They charge a minimal service fee and perform the process smoothly.
