Permanent Account Number, known as PAN, is a unique 10-digit alphanumeric number allotted to Indian taxpayers by the Income Tax Department under the Income Tax Act, 1961. The government keeps track of an individual’s tax-related activities and transactions using their unique credentials. Account no. It enables the tax collector to link all tax related activities with the department.
What is pan card?
- The PAN number records an individual’s financial transactions and is required for all payment methods.
- A PAN card is a literal plastic card that contains one’s PAN number, name, DOB and photograph.
- As it is not affected by changes in address or job profile, the PAN number is valid for life and hence can be used as a form of identification.
Permanent Account Number: Structure
- Initial three letters – alphabetical series that runs from AAA to ZZZ.
- Fourth Character – It represents the status of a PAN holder. For example, “P” stands for a person, while “F” stands for a firm.
- Fifth Letter – First letter of PAN holder’s surname.
- The following four characters – 0001 to 9999 in a numeric series.
- Final character – an alphanumeric check digit.
Different types of PAN cards
There are numerous PAN cards offered, each with a unique purpose.
- PAN card for businesses and organizations.
- Cooperative Societies and Trust PAN Card.
- Individual taxpayers must have a PAN card.
- PAN Card for Corporation or Partnership.
Who is eligible for PAN card?
The Income Tax Act states that Indian citizens who fall into four categories are entitled to a PAN card:
- Self-employed workers or business owners with annual income of Rs. 5 lakh or more.
- Those who are liable to tax or who pay income tax.
- Persons involved in import and export activities.
- Registered bodies, societies and trusts.
Indian citizens as well as NRIs (Non-Resident Indians), PIOs (Persons of Indian Origin), OCIs (Overseas Citizens of India), and foreigners recognized by the Income Tax Act, 1961 are eligible to apply for a PAN card.
Benefits of PAN Card
Mandatory for all communications and transactions from the Income Tax Department of India
You must have a unique PAN number to claim tax refund, pay tax, deposit tax deducted at source or deposit tax collected at source.
Identity verification
A PAN card is recognized as a valid form of identification across the country. It includes all relevant information like name, date of birth, photograph, signature etc.
Allows payment verification
A PAN card guarantees that every payment you make is consolidated under your PAN number, making it easy to authenticate your payments.
Several financial transactions require the use of a PAN card
A PAN card is required for certain financial transactions, such as sale and purchase of automobiles other than two-wheelers, applications for credit or debit cards, registration of a demat account with SEBI, etc.
Business registration
A company, a firm, a HUF, or any other entity cannot conduct its business without a PAN card.
Online PAN Card Verification: Required Documents
Following are the documents that an entity must provide for Online PAN Card Verification:
Organizational details
- Entity name
- Personal information about
- Personal details of the entity
- PAN and TAN of the entity
- Entity contact information
- Entity classification
Signature Details
- Digital Signature Certificate Serial Number
- Name of Certifying Authority
- Digital signature certificate class
Payment details
- Payment method
- Amount of payment
- Number of instruments
How to Apply for PAN Card through NSDL
- Go to NSDL website and select ‘Application Type’.
Visit: https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html
Visit: https://www.onlineservices.nsdl.com/paam/ - Select the appropriate application form: Form 49A is for Indian citizens, while Form 49AA is for foreign nationals.
- After that, choose the category from the available options
- Enter your details carefully, such as title and full name.
- Choose your DOB/Date of Incorporation/Formation in DD/MM/YY format.
- Enter your active email address and a valid mobile number.
- Mark the guidelines with a tick.
- Finish the PAN application after entering the captcha code.
- Then you will be taken to the payment page, where you must pay Rs.93 for your PAN card. If you opt for Form 49AA, you will have to pay Rs.864. Complete the transaction.
- After successfully submitting your PAN card application you will get an acknowledgment number page. Print a copy and keep it safely for future reference.
- Place your passport-size photograph on the acknowledgment page, sign in black ink and return the receipt to the Income Tax Department. Submit your residence verification, identity proof or other supporting documents within 15 days of the online process date.
- Following your successful validation the documents, your PAN card number will be sent to your provided mobile number and email address.
