A PAN card often addressed as a Permanent Account Number card is a special ten-digit alphanumeric number given to you i.e., an Indian resident by Income Tax Department. A PAN card is the identity for various financial transactions that contains your number of bank accounts, investing details and income tax return details. The card involves the holder’s name, signature, picture, birth date and other important details. In the case, you have applied for a PAN card and are yet to receive it, then you can check the PAN card status through online mode.
Who can place an application for a PAN card?
Everyone residing in India or earning an income source can place an application for a PAN card. This covers Indian residents, visitors and even kids. Partnerships, companies, and trusts are the perfect examples of entities that can place an application for a PAN card.
A PAN card majorly is required in India for everybody or for entities to pay taxes and conduct financial activities. An individual might still place an application for a PAN card as it serves as identity proof even if they earn no taxable income.
What are the documents required for the PAN card?
∙ Identity proof (voter ID card, Aadhaar card or driving license)
∙ Date of birth proof
∙ Address proof (voter ID, Aadhaar card or passport)
Date of birth proof for applying for the PAN card online –
When placing an application for a PAN card through the online mode, birth date proof that can be provided involves the listed –
∙ Birth certificates issued by any office or municipal authority authorised to issue the death and birth certificates by the Registrar of Deaths and Births
∙ Pension payment order
∙ Passport
∙ Matriculation certificate
∙ Domicile certificate issued by the Indian government
∙ Driving license
If you as an applicant cannot offer any of the documents mentioned above, they can then submit a Form 60 or 61 according to the Income Tax (IT) Act, 1961, mentioning your birth date.
PAN card structure – PAN card information –
PAN card structures in India are as follows –
∙ PAN card is nothing but laminated plastic with a measurement of 85.60 X 53.98 mm.
∙ PAN cards come with a blue background with the card number printed on the front side.
∙ PAN card consists of the below-mentioned information –
o Entities or individual’s name.
o Photos of individual or entity’s registered office.
o PAN card number (ten-digit alphanumerical code).
o Issue date of PAN card
o Signature of the individual or authorised signatory for the entities.
o Jurisdictional AO (assessing officer) code.
The PAN’s back side has a magnetic stripe that is utilised for reading the PAN card electronically.
∙ PAN card is just a valid identification form and is required for distinct financial transactions like filing ITR (income tax returns), opening savings or current bank account and conducting investments.
∙ PAN’s fourth character represents the taxpayer’s category and entity. The distinct entities and corresponding PAN are –
o T – Association of persons for trust
o P – Individual
o L – Local authority
o J – Artificial judicial person
o H – Hindu undivided family
o G – Government
o F – Firms
o C – Company
o B – Body of individuals
o A – Association of persons
Knowing your category of PAN is necessary as it shows your filing requirements and tax liabilities. If you require clarification on the PAN category, ensure to consult with the tax experts or check out with the IT (income tax) department.
Benefits of PAN –
PAN card has various benefits. These include –
Income tax identification
PAN is basically used as a unique identification number for income tax purposes. PAN quotation while filing IT returns, paying taxes, and conducting financial transactions surpassing a particular limit is necessary.
Opening bank accounts
A PAN card is a necessary and valid identification form that is accepted by banks when opening an account involving fixed deposits, savings accounts, and investment accounts.
Investing in securities
PAN is mandatory for making investments in securities like bonds, stocks, mutual funds, and other necessary financial instruments.
Applying for the loans
Financial institutions and banks require the PAN when processing your credit application involving home loans, personal loans, and auto loans.
Buying property
PAN is a mandatory document for buying property, involving buildings, land, and other necessary immovable assets.
Conducting business
PAN is a must for all the necessary financial transactions linked with business involving making payments, receiving payments, and filing tax returns.
Prevents tax evasion
PAN assist the Indian government to track financial transactions as well as prevent tax evasion. This ensures entities and individuals pay taxes on their investments, income, and crucial financial transactions.
How can you place an application for the PAN card through online mode?
You can place an application for a PAN card through online mode by following the steps mentioned below –
No. 1 step –
Visit the official site of the NSDL (National Securities Depository Limited) or the UTI PAN site. These two sites allow you to apply for a PAN card.
No. 2 step –
Hit on the option “apply for the new PAN” or the other option “online PAN application. Once done, next choose the appropriate form for the PAN type you are looking to apply for.
No. 3 step –
Fill out all the required details on the online form like name, birth date, contact details and address.
No. 4 step –
Ensure to upload the required documents involving identity proof, address, and birth date.
No. 5 step –
Make the payment of the application fee through your debit card, credit card or Internet banking.
No. 6 step –
After you submit the application as well as make the payment, you will get a slip of acknowledgement with a unique 15-digit number.
No. 7 step –
Print and then sign the acknowledgement. Once done affix 2 passport-sized photos.
No. 8 step –
Send a signed acknowledgement and supporting documents to UTI PAN or NSDL office within fifteen days of providing the online application.
No. 9 step –
Once your documents are authenticated and processed, your PAN card would be delivered to your provided address in the PAN application within a week.
