What is PAN Card, Overview, Importance, Types, and Eligibility
A PAN Card (Permanent Account Number) is a unique 10-digit identifier issued by the Income Tax Department to all taxpayers in India. It is an important identification document that records all tax-related information for individuals and entities. The PAN card can also be used for financial transactions and is a necessary document for banking, tax filing, and business registration.
This blog will help you learn more about the PAN Card guide, different types, and who is eligible for it.
What is a PAN Card?
A PAN Card consists of a unique 10-digit PAN number and is issued by the Income Tax Department of India.
It acts as an individual or entity’s Proof of Identity for various purposes.
An individual’s tax-related information is also recorded and monitored using a PAN Card.
The newer version of the PAN Card, released on 1st January, features a Quick Response (QR) Code carrying the cardholder’s details.
This code contains the cardholder’s details, such as their name, father’s name, date of birth, and signature. It is also used for data verification.
Why do you need a PAN Card?
A PAN Card is required for several reasons, namely:
Official Identity Proof
Your PAN Card will have your photograph, signature, and date of birth. It works as a globally accepted proof of identity.
Tax Compliance
It is a legal necessity to file Income Tax Returns (ITR) and pay direct taxes in India. If you fail to do so, you may face high TDS deductions and penalties.
Banking and Finance
You need a PAN Card if you plan to open a savings account, secure loans, or apply for a credit card.
High-Value Transactions
A PAN Card is necessary for depositing cash exceeding Rs. 50000 at one time, purchasing or selling immovable property or buying vehicles.
Investments
You need a PAN Card to complete e-KYC for buying mutual funds, trading in stocks and investing in other financial instruments.
What are the contents of a PAN Card?
A PAN card has a variety of information related to the PAN holder. These include:
The Cardholder’s Name
This contains the name of the individual, partnership firm, LLP or company.
The Father’s Name
This is for individual cardholders. The father’s or the mother’s name (in case of a single parent) will be printed on the card.
Date of Birth
For an individual, their date of birth will be mentioned. For a company or firm, the date of registration is provided.
PAN Number
It is a 10-digit alphanumeric number. Each character denotes information about the cardholder.
Signature
This is applicable only for individual cardholders. A PAN card acts as proof of an individual’s signature for financial transactions.
The Cardholder’s Photograph
It also serves as photo ID proof for the individual. For companies and firms, there are no photographs on the card.
What are the types of PAN Card?
There are different types of PAN cards for different individuals and cases in India. These are listed below.
Individual PAN card for minors and students
Hindu Undivided Family (HUF)
Company
Partnership Firms
Limited Liability Partnerships (LLP)
Trusts
Society
Association of Persons (AOP)
Body of Individuals (BOI)
Foreigners
What are the different types of PAN Forms?
There are 4 types of PAN forms. Each of them is focused on a specific applicant type. These are:
Form 93: This is for an individual who is an Indian Citizen, including NRIs (Non-Resident Indians).
Form 94: This is for a non-individual entity from India.
Form 95: This is for an individual who is not an Indian Citizen.
Form 96: This is for a non-individual foreign entity
What are the eligibility criteria for a PAN Card?
The eligibility criteria differ for Indian Citizens/Entities and Foreign Individuals/Entities.
For Indian Citizens and Entities
Individuals
This includes all citizens who are salaried, self-employed and professionals who have valid proof of identity and address.
Minors
In case of minors, their parents or guardians can apply on their behalf.
The parents or guardians must submit the necessary documents along with the proof of date of birth for minors.
Students can also apply for a PAN Card.
Hindu Undivided Families (HUFs)
Since it is a separate legal entity, a HUF can apply for a PAN card through its Karta.
The HUF can conduct financial transactions using the PAN Card.
Limited Liability Partnerships (LLPs)
LLPS must apply for a PAN Card to conduct financial transactions and file taxes.
Partnership Firms
The partnership firm must get a PAN card in its name for filing Income Tax Returns.
Companies
All companies doing business in India must apply for a PAN Card.
The company must provide the PAN card number of the company for various kinds of financial transactions.
Trusts and Associations
Entities such as trusts, Association of Persons (AOPs), and Body of Individuals (BOIs) can apply for a PAN card after submitting their Certificate of Registration.
Local Authorities
They can also apply for a PAN Card by providing a copy of the agreement.
Artificial Judicial Persons
Other artificial judicial persons can apply for a PAN card.
They must provide the Certificate of Registration and the necessary government documents proving their identity and address.
For Foreign Citizens
Foreign individuals must apply for a PAN Card if they are involved in financial transactions in India.
They must provide proof of identity, proof of address and proof of date of birth documents.
What documents are required for a PAN Card application?
The documents required for a PAN Card application are listed below.
Proof of Identity
Voter ID Card
Passport
Driving Licence
Aadhaar Card
Ration Card having the photo of the individual
Photo ID card issued by the central or state government
Proof of Address
Utility Bills (such as electricity, water, and gas)
Aadhaar card
Voter ID Card
Passport
Bank Account statements
Domicile Certificate
Proof of Date of Birth
Birth Certificate
Matriculation Certificate
Passport
Driving Licence
Marriage Certificate
Photo Identity Card
How to apply for a PAN Card?
There are 3 ways to apply for a PAN Card. These are listed below:
Via Protean Website
Access the official Protean (formerly NSDL) website.
Choose the application type and category.
Enter the required details, then click on “Submit”.
A Token number will be displayed on the screen. You will also receive it on your email ID.
Click on the “Continue with PAN Application Form” button.
Select the mode of submission of documents. Fill out the form and upload the necessary documents.
Pay the applicable fees. Take a printout of the acknowledgment number or reference number.
Your PAN Card will be dispatched to your registered address within 15–20 days after submitting the application.
Note: If you have opted for a physical document submission, you must send the documents and the filled-out application form to the Income Tax PAN Services unit.
Via UTIITSL Portal
Access the official UTIITSL website.
Under the “PAN Card for Indian Citizen/NRI” tab, select the “Click to Apply” option.
Choose the “Apply for a New PAN Card” tab.
Select the method of submission of documents. Click on “Submit”.
You will receive a reference number. Click on “OK”.
Enter your personal details such as your contact number, address, parents’ names and document details.
Click on “Next Step”. Upload the necessary documents and click on “Submit”.
Verify the details on the form, then click on “Make Payment” to pay the applicable fees.
After the payment is successful, take a printout of the form.
You will receive your PAN Card within 15 days after your application is submitted online.
Note: If you have opted for a physical document submission, you must send the form and documents to the appropriate UTIITSL office.
Via Offline Manner
Go to your nearest PAN centre and get a printout of the PAN Application Form.
Enter all your necessary details on the form and affix your recent passport-sized photograph and signature.
Attach the necessary documents with the application.
Submit the form along with the documents to the PAN centre and pay the applicable fees.
How to check the status of the PAN Card Application?
After you have submitted the PAN application form online, you can track its status by following the steps below.
Visit the UTIITSL PAN Tracking website.
Enter your acknowledgment number or application number.
Enter the captcha code, then click on “Submit”.
The status of the PAN Card will be displayed on the screen.
How to download a PAN Card?
After your PAN Card is processed and generated, you can download a digital version known as an e-PAN Card. To do this, follow the steps below.
Access the Protean or UTIITSL website.
Enter the required details such as your acknowledgment number and date of birth.
Enter the OTP received and pay the applicable fees.
Click on “Download e-PAN”.
What is the fee structure of the PAN Card?
The Points below outlines the fees for PAN Card Application.
Physical PAN Card (Communication Address in India): ₹107
e-PAN Card (Communication Address in India): ₹66
Physical PAN Card (Communication Address Outside India): ₹1,017
e-PAN Card (Communication Address Outside India): ₹66
Note: The application fees are subject to change. Applicants should check the official Protean or UTIITSL portal for the latest fee details before applying.
How to update or correct your PAN Card details?
Follow the steps below to update your details on your PAN Card.
Visit the official Protean (formerly NSDL) or UTIITSL website.
Choose the application type as “Changes or corrections in existing PAN Card/Reprint of PAN Card”.
Enter the details that you need to update.
Upload the required documents, then click on the “Submit” button.
Pay the applicable fees.
Your updated PAN Card will be dispatched within 15 days.
What to do if you have lost your PAN Card?
You can apply for a Duplicate PAN Card if you have lost your original PAN Card. Follow the steps below to do the same.
Access the Protean (formerly NSDL) or UTIITSL website.
Provide the necessary details such as date of birth, GSTIN (if applicable), PAN, and Aadhaar Number.
Enter the captcha code, then click on “Submit”.
Enter the OTP and pay the applicable fees.
Your duplicate PAN Card will be sent to your registered address.
Important things to keep in mind when filling out the PAN Form
Make sure you remember the following points while filling out the PAN application form.
You must make sure to fill the form with your current details and relevant details only.
You must provide the complete address so your PAN Card can be dispatched to the correct address.
Make sure you do not have any abbreviations in the First Name and Last Name section.
If you do have abbreviations in your first name or last name, you must write the full name.
Applicants such as entities are not required to fill in the gender, parents’ details and residence address section.
Individuals are not required to provide the office address if their source of income is not salary, business or profession.
When self-attesting supporting documents, make sure you attach the relevant document with your signature or thumbprints.
Your application might be rejected if you provide incorrect details or lack supporting documents.
Conclusion
A PAN Card is a valuable document for every Indian citizen, NRI, and entities residing in India. Having a PAN card not only helps to prove your identity but also helps to manage your financial transactions, file Income Tax Returns, and complete KYC verifications. You must apply for a duplicate PAN Card if you have lost the original one. By following the application process carefully and submitting the required documents, you can get your own PAN card without any issues.
