Information

At the present time PAN or permanent account number is one of the essential document required. PAN is a unique 10-digit alphanumeric identity allotted to each taxpayer by the Income Tax Department under the supervision of the Central Board of Direct Taxes. It also serves as an identity proof. PAN is mandatory for financial transactions such as receiving taxable salary or professional fees, sale or purchase of assets above specified limits, buy mutual funds and more.

The primary objective of PAN is to use a universal identification key to track financial transactions that might have a taxable component to prevent tax evasion. The PAN number remains unaffected by change of address throughout India.

In addition to this PAN card is a photo ID issued by a government body and it serves as proof of identity anywhere within the country. The card is valid throughout the holder’s lifetime.

Features of PAN Registration :-

  1. Deduction of fraudulent transactions
  2. Reduce tax evasion
  3. Transparency in transactions between buyer and seller

Documents Required :-

Type of Applicant Proof of Identity Proof of Address Proof of Date of Birth
For Individuals & HUF - Indian Citizen
  1. Aadhaar Card issued by the Unique Identification Authority of India
  2. Elector’s photo identity card
  3. Driving License
  4. Passport
Ration card having photograph of the applicant Post office passbook having address of the applicant Birth certificate issued by the municipal authority or any office authorized to issue birth and death certificate
Certificate of Identity in original signed by a Member of Parliament/ Member of Legislative Assembly Copy of following documents of not more than three months old
  1. Electricity Bill
  2. Landline Telephone or Broadband connection bill
  3. Water Bill
  4. Consumer gas connection card or book or piped gas bill
  5. Bank account statement or as per Note 2
  6. Depository account statement
  7. Credit card statement
  • Marriage Certificate issued by Registrar of Marriages
  • Domicile Certificate issued by the Government
For NRI Holding Indian Passport Copy of Passport Banking statement showing your foreign address + name or any other address proof apostilled (like resident card, electricity, utility, telephone bill, etc Not required
For Foreign Passport Holder Passport copy showing your name and picture Bank statement certified or attested by the bank manager
or
any other address proof like a utility bill, etc but apostilled.
Not required
FOR OCI or PIO card holder Passport copy with your photo, father name, Copies of OCI or PIO cards, Bank Statement certified

Type of Applicant Documents to be submitted
Company Copy of certificate of registration issued by Registrar of Companies
Partnership Firm Copy of certificate of registration issued by Registrar of firms or Copy of Partnership Deed
Limited Liability Partnership Copy of Certificate of Registration issued by the Registrar of LLPs
Association of Persons (Trust) Copy of trust deed or copy of certificate of registration number issued by Charity Commissioner
Association of Person, Body of Individuals, Local Authority, or Artificial Juridical Person Copy of Agreement or copy of certificate of registration number issued by charity commissioner or registrar of cooperative society or any other competent authority or any other document originating from any Central or State Government Department establishing identity and address of such person

Process Flow of PAN Registration :-

  1. Fill up an Easy Form
  2. Submit the required documents and the scan photo and signature of the applicant/ authorized
  3. We will process the application form in (2 working days)
  4. Acknowledgement copy will be provided to you on your registered email id and confirmation message on your registered mobile number

FAQ :-

What is the structure of PAN?

A typical Permanent Account Number is would look like AFZPK7190K. The logic behind the array of numbers and alphabets is as follows:

  • First three characters i.e. "AFZ" in the above PAN are alphabetic series running from AAA to ZZZ
  • Fourth character i.e. "P" in the above PAN represents the status of the PAN holder
    • "P" stands for Individual
    • "F" stands for Firm
    • "C" stands for Company
    • "H" stands for HUF
    • "A" stands for AOP
    • "T" stands for TRUST
  • Fifth character i.e. "K" in the above PAN represents first character of the PAN holder's last name/surname
  • Next four characters i.e. "7190" in the above PAN are sequential number running from 0001 to 9999
  • Last character i.e. "K" in the above PAN is an alphabetic check digit
How long does it take to get PAN card now?

New PAN card takes approx 15 to 20 working days. Correction or Replacement card takes anything from 30 to 40 working days; however this may vary depending on the authorities' discretion and load.

Who should apply for PAN card?

All existing assessees or taxpayers or any persons who earns a taxable income in India, including foreign nationals and are required to furnish a return of income, either on behalf of self or others, must obtain PAN. Any person, who intends to enter into economic or financial transactions were quoting PAN is mandatory, must also obtain PAN.

Can minor apply for a PAN card?

Section 160 of Income Tax Act, 1961 provides that a non-resident, minor, lunatic, idiot, and court of wards and such other persons may be represented through a Representative Assessee. In such cases, application for PAN will be made by the Representative Assessee.

Who should apply for a new PAN card?

One should apply for new PAN Card when the applicant has never applied for a Permanent Account Number (PAN) or does not have a PAN allotted to him.

Who should apply for a change or correction in PAN card?

One should make an application when he/she wants to make some changes or corrections in their existing PAN details such as Change in applicant name on account of marriage or due to spelling mistake, Change in father's name, Change in date of birth.

Who should apply for a duplicate PAN card?

One should apply for a duplicate PAN card when a Permanent Account Number (PAN) has already been allotted to the applicant but he/she requires a new duplicate PAN Card due to the following reason:

  • Lost the PAN Card
  • Damaged the PAN Card
  • Wants to change from old to new tamper proof PAN card
Can a person obtain or use more than one PAN?

Obtaining or possessing more than one (Permanent Account Number) PAN is against the law.

How will the new PAN card be delivered to me?

The PAN card processing authorities to whom the application is submitted will ensure delivery of new PAN card at the address indicated by you in the application Form.

Why to apply for PAN card?
  • For payment of direct taxes
  • To file income tax returns
  • To avoid deduction of tax at higher rate than due
  • To enter into specific transaction such as:
    1. Sale or purchase of immovable property valued at Rs 5 lakh or more
    2. Sale or purchase of a vehicle other than a two wheeler
    3. Payment to hotels or restaurants an amount exceeding Rs 25,000 at any one time
    4. Payment in cash an amount exceeding Rs 25,000 in connection with travel to any foreign country
    5. Payment of an amount of Rs 50,000 or more to the Reserve Bank of India for acquiring bonds
    6. Payment of an amount of Rs 50,000 or more to a company or an institution for acquiring bonds or debentures
    7. Payment of an amount of Rs 50,000 or more to a company for acquiring shares
    8. Any mutual fund purchase
    9. Deposit exceeding Rs 50,000 with any single banking institution in 24 hours
    10. Payment exceeding Rs 5 lakh for purchase of bullion and jewellery
What is form 49A?

Form 49A is a Application for Allotment of Permanent Account Number in case of Indian Citizen/ Indian Companies/Entities incorporated in India/Unincorporated entities, Local authorities formed in India.

What is form 49AA?

Form 49A is a Application for Allotment of Permanent Account Number in case of Individuals who are not Indian Citizen/ Companies registered outside India/ Entities incorporated outside India.

What are the reason for PAN card rejection?
  • Inconsistency in the PAN Application form vis a vis Supporting Documents: At times applicant fill the details wrongly such as name, age, gender, date of birth, address etc. than which is there in your identity proof.
  • Inconsistency in Supporting Documents attached: At times, the documents that are posted to the PAN department as address or identity proofs, are not printed clearly enough for the authorities to recognize these as valid proofs. Also, there are times when, the documents that are required for identity proof are not furnished and some other document is attached.
What are circumstances one cancel their PAN Card?
  • The assessee is moving out of the country permanently.
  • The assessee has been mistakenly allotted more than one PAN card by the Income Tax Department of India.
  • The existing PAN card of an individual contains any errors.
  • In the event of death of an assessee, their immediate relatives can apply for cancellation of PAN to the Income Tax Department.
  • For any company/ firm/ partnership, one can apply for PAN Card cancellation if they go out of business.
Is it mandatory for NRIs to hold PAN cards?

It is not mandatory for Non Resident Indians to hold a PAN card. In the event where PAN is necessary, like purchasing a vehicle, they can apply for Form 60 which exempts them for proving a PAN Card.

What is the use of the jurisdiction AO code for those who already own a PAN card?

The jurisdiction Assessing Officer code helps in identifying the jurisdiction under which the PAN cardholder falls in.

What are the steps involved in knowing PAN jurisdiction?

The steps involved in knowing one’s PAN jurisdiction are as follows:

  • The individual needs to visit the official website of the Income Tax Department
  • Next, click on ‘Know Your AO’ section
  • Provide the PAN card and mobile number
  • Insert the One Time Password (OTP) sent on the registered mobile number
  • The jurisdiction details of the PAN as well as its status is displayed
What does the code of the assessing officer reflect?

The code shows the Commissioner’s charge, Chief Commissioner’s region, the range of the Joint Commissioner along with the place and designation of the Assessing Officer.

Deductee is foreigner and does not have PAN. Do I need to deduct TDS?

Yes. Any person who intends to enter into economic or financial transactions where quoting PAN is mandatory, must also have a PAN. In case the person does not have PAN, tax should be deducted at the rate of 20% or higher.

What happen if incorrect PAN is quoted in the Self Assessment/ Advance tax payment Challan?

In such cases, your tax payment details will not be reflected in Form 26AS. It is important for you to correctly state your PAN in the tax payment challan. For correction in challan within 7 days, you need to approach the bank and after 7 days, you may approach the jurisdictional assessing officer.

Which form a Foreign Citizen can used to apply for PAN?

A foreign citizen can apply for a PAN by submitting Form 49AA at www.tin-nsdl.com

Can deductor deduct TDS on higher rate along with surcharge if PAN provided by deductee is invalid?

TDS along with surcharge (in case applicable) should be deducted at higher rate if invalid PAN is provided

What is PAN verification?

This functionality helps deductor in verifying whether the PAN provided by the deductee (Tax Payer) is valid as per Income Tax Department database.

How to verify PAN?

Login to TRACES as deductor and click on 'PAN Verification' under 'Statements / Payments' tab. Enter PAN and select Form Type and proceed. Status of the PAN (whether valid / invalid) and name of PAN holder will be displayed as per PAN database.

Information

At the present time PAN or permanent account number is one of the essential document required. PAN is a unique 10-digit alphanumeric identity allotted to each taxpayer by the Income Tax Department under the supervision of the Central Board of Direct Taxes. It also serves as an identity proof. PAN is mandatory for financial transactions such as receiving taxable salary or professional fees, sale or purchase of assets above specified limits, buy mutual funds and more.

The primary objective of PAN is to use a universal identification key to track financial transactions that might have a taxable component to prevent tax evasion. The PAN number remains unaffected by change of address throughout India.

In addition to this PAN card is a photo ID issued by a government body and it serves as proof of identity anywhere within the country. The card is valid throughout the holder’s lifetime.

  1. Deduction of fraudulent transactions
  2. Reduce tax evasion
  3. Transparency in transactions between buyer and seller
Type of Applicant Proof of Identity Proof of Address Proof of Date of Birth
For Individuals & HUF - Indian Citizen
  1. Aadhaar Card issued by the Unique Identification Authority of India
  2. Elector’s photo identity card
  3. Driving License
  4. Passport
Ration card having photograph of the applicant Post office passbook having address of the applicant Birth certificate issued by the municipal authority or any office authorized to issue birth and death certificate
Certificate of Identity in original signed by a Member of Parliament/ Member of Legislative Assembly Copy of following documents of not more than three months old
  1. Electricity Bill
  2. Landline Telephone or Broadband connection bill
  3. Water Bill
  4. Consumer gas connection card or book or piped gas bill
  5. Bank account statement or as per Note 2
  6. Depository account statement
  7. Credit card statement
  • Marriage Certificate issued by Registrar of Marriages
  • Domicile Certificate issued by the Government
For NRI Holding Indian Passport Copy of Passport Banking statement showing your foreign address + name or any other address proof apostilled (like resident card, electricity, utility, telephone bill, etc Not required
For Foreign Passport Holder Passport copy showing your name and picture Bank statement certified or attested by the bank manager
or
any other address proof like a utility bill, etc but apostilled.
Not required
FOR OCI or PIO card holder Passport copy with your photo, father name, Copies of OCI or PIO cards, Bank Statement certified

Type of Applicant Documents to be submitted
Company Copy of certificate of registration issued by Registrar of Companies
Partnership Firm Copy of certificate of registration issued by Registrar of firms or Copy of Partnership Deed
Limited Liability Partnership Copy of Certificate of Registration issued by the Registrar of LLPs
Association of Persons (Trust) Copy of trust deed or copy of certificate of registration number issued by Charity Commissioner
Association of Person, Body of Individuals, Local Authority, or Artificial Juridical Person Copy of Agreement or copy of certificate of registration number issued by charity commissioner or registrar of cooperative society or any other competent authority or any other document originating from any Central or State Government Department establishing identity and address of such person
  1. Fill up an Easy Form
  2. Submit the required documents and the scan photo and signature of the applicant/ authorized
  3. We will process the application form in (2 working days)
  4. Acknowledgement copy will be provided to you on your registered email id and confirmation message on your registered mobile number
What is the structure of PAN?

A typical Permanent Account Number is would look like AFZPK7190K. The logic behind the array of numbers and alphabets is as follows:

  • First three characters i.e. "AFZ" in the above PAN are alphabetic series running from AAA to ZZZ
  • Fourth character i.e. "P" in the above PAN represents the status of the PAN holder
    • "P" stands for Individual
    • "F" stands for Firm
    • "C" stands for Company
    • "H" stands for HUF
    • "A" stands for AOP
    • "T" stands for TRUST
  • Fifth character i.e. "K" in the above PAN represents first character of the PAN holder's last name/surname
  • Next four characters i.e. "7190" in the above PAN are sequential number running from 0001 to 9999
  • Last character i.e. "K" in the above PAN is an alphabetic check digit
How long does it take to get PAN card now?

New PAN card takes approx 15 to 20 working days. Correction or Replacement card takes anything from 30 to 40 working days; however this may vary depending on the authorities' discretion and load.

Who should apply for PAN card?

All existing assessees or taxpayers or any persons who earns a taxable income in India, including foreign nationals and are required to furnish a return of income, either on behalf of self or others, must obtain PAN. Any person, who intends to enter into economic or financial transactions were quoting PAN is mandatory, must also obtain PAN.

Can minor apply for a PAN card?

Section 160 of Income Tax Act, 1961 provides that a non-resident, minor, lunatic, idiot, and court of wards and such other persons may be represented through a Representative Assessee. In such cases, application for PAN will be made by the Representative Assessee.

Who should apply for a new PAN card?

One should apply for new PAN Card when the applicant has never applied for a Permanent Account Number (PAN) or does not have a PAN allotted to him.

Who should apply for a change or correction in PAN card?

One should make an application when he/she wants to make some changes or corrections in their existing PAN details such as Change in applicant name on account of marriage or due to spelling mistake, Change in father's name, Change in date of birth.

Who should apply for a duplicate PAN card?

One should apply for a duplicate PAN card when a Permanent Account Number (PAN) has already been allotted to the applicant but he/she requires a new duplicate PAN Card due to the following reason:

  • Lost the PAN Card
  • Damaged the PAN Card
  • Wants to change from old to new tamper proof PAN card
Can a person obtain or use more than one PAN?

Obtaining or possessing more than one (Permanent Account Number) PAN is against the law.

How will the new PAN card be delivered to me?

The PAN card processing authorities to whom the application is submitted will ensure delivery of new PAN card at the address indicated by you in the application Form.

Why to apply for PAN card?
  • For payment of direct taxes
  • To file income tax returns
  • To avoid deduction of tax at higher rate than due
  • To enter into specific transaction such as:
    1. Sale or purchase of immovable property valued at Rs 5 lakh or more
    2. Sale or purchase of a vehicle other than a two wheeler
    3. Payment to hotels or restaurants an amount exceeding Rs 25,000 at any one time
    4. Payment in cash an amount exceeding Rs 25,000 in connection with travel to any foreign country
    5. Payment of an amount of Rs 50,000 or more to the Reserve Bank of India for acquiring bonds
    6. Payment of an amount of Rs 50,000 or more to a company or an institution for acquiring bonds or debentures
    7. Payment of an amount of Rs 50,000 or more to a company for acquiring shares
    8. Any mutual fund purchase
    9. Deposit exceeding Rs 50,000 with any single banking institution in 24 hours
    10. Payment exceeding Rs 5 lakh for purchase of bullion and jewellery
What is form 49A?

Form 49A is a Application for Allotment of Permanent Account Number in case of Indian Citizen/ Indian Companies/Entities incorporated in India/Unincorporated entities, Local authorities formed in India.

What is form 49AA?

Form 49A is a Application for Allotment of Permanent Account Number in case of Individuals who are not Indian Citizen/ Companies registered outside India/ Entities incorporated outside India.

What are the reason for PAN card rejection?
  • Inconsistency in the PAN Application form vis a vis Supporting Documents: At times applicant fill the details wrongly such as name, age, gender, date of birth, address etc. than which is there in your identity proof.
  • Inconsistency in Supporting Documents attached: At times, the documents that are posted to the PAN department as address or identity proofs, are not printed clearly enough for the authorities to recognize these as valid proofs. Also, there are times when, the documents that are required for identity proof are not furnished and some other document is attached.
What are circumstances one cancel their PAN Card?
  • The assessee is moving out of the country permanently.
  • The assessee has been mistakenly allotted more than one PAN card by the Income Tax Department of India.
  • The existing PAN card of an individual contains any errors.
  • In the event of death of an assessee, their immediate relatives can apply for cancellation of PAN to the Income Tax Department.
  • For any company/ firm/ partnership, one can apply for PAN Card cancellation if they go out of business.
Is it mandatory for NRIs to hold PAN cards?

It is not mandatory for Non Resident Indians to hold a PAN card. In the event where PAN is necessary, like purchasing a vehicle, they can apply for Form 60 which exempts them for proving a PAN Card.

What is the use of the jurisdiction AO code for those who already own a PAN card?

The jurisdiction Assessing Officer code helps in identifying the jurisdiction under which the PAN cardholder falls in.

What are the steps involved in knowing PAN jurisdiction?

The steps involved in knowing one’s PAN jurisdiction are as follows:

  • The individual needs to visit the official website of the Income Tax Department
  • Next, click on ‘Know Your AO’ section
  • Provide the PAN card and mobile number
  • Insert the One Time Password (OTP) sent on the registered mobile number
  • The jurisdiction details of the PAN as well as its status is displayed
What does the code of the assessing officer reflect?

The code shows the Commissioner’s charge, Chief Commissioner’s region, the range of the Joint Commissioner along with the place and designation of the Assessing Officer.

Deductee is foreigner and does not have PAN. Do I need to deduct TDS?

Yes. Any person who intends to enter into economic or financial transactions where quoting PAN is mandatory, must also have a PAN. In case the person does not have PAN, tax should be deducted at the rate of 20% or higher.

What happen if incorrect PAN is quoted in the Self Assessment/ Advance tax payment Challan?

In such cases, your tax payment details will not be reflected in Form 26AS. It is important for you to correctly state your PAN in the tax payment challan. For correction in challan within 7 days, you need to approach the bank and after 7 days, you may approach the jurisdictional assessing officer.

Which form a Foreign Citizen can used to apply for PAN?

A foreign citizen can apply for a PAN by submitting Form 49AA at www.tin-nsdl.com

Can deductor deduct TDS on higher rate along with surcharge if PAN provided by deductee is invalid?

TDS along with surcharge (in case applicable) should be deducted at higher rate if invalid PAN is provided

What is PAN verification?

This functionality helps deductor in verifying whether the PAN provided by the deductee (Tax Payer) is valid as per Income Tax Department database.

How to verify PAN?

Login to TRACES as deductor and click on 'PAN Verification' under 'Statements / Payments' tab. Enter PAN and select Form Type and proceed. Status of the PAN (whether valid / invalid) and name of PAN holder will be displayed as per PAN database.