What is a PAN card
PAN stands for Permanent Account Number. It is issued by the Income Tax Department under Income Tax Act, 1961. PAN Card is a 10-digit a unique alphanumeric number, issued in the form of a laminated tamper-proof card, by Income Tax Department under Income Tax Act, 1961 of India.
The PAN- Permanent Account Number is unique to an entity or individual and it is valid across India. PAN once allotted to an individual or entity is unaffected by a change the Details like name, address within or across states in India and other factors.
Types of PAN
- HUF-Hindu undivided family
PAN Card Cost
The cost of the Permanent Account Number (PAN) card is Rs. 110 or Rs. 1,020 (approximately) if the PAN card is to be dispatched outside of India.
Structure of PAN Card
Permanent Account Number (PAN) card contains information such as an identity, age proof and also complies with the Know Your Customer (KYC) guidelines.
PAN card details are as follows:
Name of the cardholder – Individual or Company
Name of father of the cardholder – Applicable for individual cardholders.
Date of birth (DOB) – the cardholder’s DOB in case of an individual or date of registration is mentioned in case of a firm or company.
PAN Number It is a 10 letter alpha-numeric number and each character represents distinct information of the cardholder.
First three letters – are purely alphabetical in nature and contain 3 letters of the alphabet from A to Z.
The fourth letter – this shows the category of the taxpayer. The repersents various entities and their respective characters are as follows:
A – Association of Persons
B – Body of Individuals
C – Company
F – Firms
G – Government
H – Hindu Undivided Family
L – Local Authority
J – Artificial Judicial Person
P – Individual
T – Association of Persons for a Trust
The fifth letter – the fifth letter is the first letter of the individual’s surname
Remaining letters – remaining characters are random. The first and Fourth characters are numbers while the last one is an alphabet.
Signature of individual – PAN Card also including acts as a proof of the individual’s signature requirement for financial transactions.
Photograph of an individual – PAN Card including acts as a photo identity proof of the individual. In the case of firms and companies, no photo is present on the card...
Online PAN Card Application Process
- Visit the TIN NSDL or UTIISL websites or portal and select the ‘New PAN’ option
- Select Application Form 49A for Indian citizens (including NRE/NRI/OCI individuals)
- Fill up all details in the online form, mentioning details such as your full name, address, date of birth, gender, telephone or phone number and income details, etc.
- On filling the form and submit it and Payment the fee
- Print page with the 15-digit acknowledgment & sign up in the space provided.
- Affix passport sized photo on the acknowledgment, proof of identity and documents of address Proof and Demand Draft (if you are paying through DD).
- The above is to be sent to the NSDL office by post PAN card within 15 days of submitting the online application.
- The PAN will then be sent your address within 15 working days.
Offline PAN Card Application Process
- Download the PAN card application form 49A from the National Securities Depository Limited (NSDL) or UTIISL websites or potal or collect a copy from UTIISL agents.
- Fill up in the form and attach supporting documents (proof of identity, photographs and address)
- Submit the form and documents to the NSDL office along with the Payment the fee.
- The PAN card will be sent address mentioned in the form within 15 working days.
- And As per the NSDL website or Portal, the entire process of printing and dispatching cards takes approximately 15 days. The status can be tracked by following the steps mentioned below:
- Visit tin-nsdl.com.
- Select ‘PAN’ under the ‘Services’ tab.
- Next, click on ‘Know Status of Your Application’.
- Select the application type and provide the acknowledgment number.
- Enter the captcha code.
- Click on ‘Submit’.
- In doing so, the details are provided in the corresponding screen.
Types of PAN Applications
- Issuance of new PAN Application (Form 49A)
- Change/Correction in PAN —(Form 49A)
Why do you need PAN?
- Proof of Identity
- Proof of Address
- Mandatory for Filing Taxes
- Registration of Business
- Financial transactions
- Eligibility to open and operate Bank Accounts
- Phone Connection
- Gas Connection etc.
Document required for PAN Card
- Proof of Identity
- Proof of Address
- Proof of Age
Some details fill up the Form
- Name, Father’s name and Date of birth
- Residential address
- Source of income
- Aadhar number
- Telephone number, Email id.
Uses of PAN Card
It is a unique alphanumeric number, 10-digit number imprinted on the laminated tamper-proof card or laminated plastic card. Individuals, Firm, Association of persons, Hindu Undivided Family, Company (Like LLP, Private/Public Limited Company, One Person Company etc), Body of Individual, co-operative society, Artificial Juridical Person, Government Agencies, Local Authority, Limited Liability Partnership (LLP), Trust and all those whose income are taxable under the Income Tax Act, 1961 are required to acquire a PAN Card. Pan Card use the following fields-
1. Opening a bank account
2. Buying or selling a motor vehicle>
3. Applying for a credit or debit card
4. Making investments
5. Proof of Identity
6. Foreign Exchange
9. Fixed Deposits
10. Cash Deposits