PAN Card: About, Benefits, Importance, & Online PAN Application

Since taxation is an important aspect of every country, the assessment of a person’s income to calculate the tax payable by them is very important. However, due to a huge population, it is difficult to keep track of income details and other such info of a person without any proper system in place. For this purpose, the Indian government started the PAN identification system to keep track of all taxpayers. So in this guide, we will let you know everything about a PAN card, from its benefits to structure and steps to track PAN cards, PAN Card reprints, and PAN applications from all the eligible portals.

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Overview

The table showcases the key highlights of the PAN Card:

Latest Coverages On PAN Card

The PAN card stands for Permanent Account Number and is an identity card that gives evidence of identity and control over financial transactions issued by the income tax department of India. In recent times, many changes in PAN card usage and its linking with Aadhaar have come up.

Here are the latest highlights regarding the PAN Card in India that one must know:

• Aadhaar-PAN Linking Deadline: The government extended the deadline for linking PAN with Aadhaar up to June 30, 2023, and announced that the PAN card would become dormant if the same was not linked with Aadhaar by July 1, 2023. However, there are indications that the government might shift the time to the year 2024, particularly December 31st.

• Financial Rule Changes in October 2024: According to the Union Budget 2024, new rules of income tax were introduced on 1st October 2024. Some of the rules are: Transaction Tax (STT), TDS rates, Aadhaar-PAN usage, and changes in the Direct Tax Vivad Se Vishwas Scheme 2024.

• Check PAN Card Status Online: Your PAN card may have been made inactive due to linkage failure or some other causes. You can now check your PAN status online so that you do not encounter any problems financially.

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What Is A PAN Card?

The PAN Card, also known as the Permanent Account Number Card, is a taxpayer and income identification issued by the Income Tax Department. It consists of a 10-character alpha-numeric number that is known as your PAN card number.

The PAN Card helps the government keep a track record of your income and evaluate tax accordingly. A PAN card is a physical card and also has your name, date of birth, father’s or spouse’s name, and photograph. It can also be treated as proof of identity or date of birth.

History Of PAN In India

Before PAN was introduced, taxpayers were assigned a GIR number, which was unique only within a specific ward or under a particular assessing officer but not at the national level. This could lead to errors and mistaken identity during tax assessments.

The GIR number included the assessing officer’s information and was manually assigned. In 1972, the Indian government introduced the concept of PAN, making it statutory under Section 139A of the Income Tax Act of 1961. Initially voluntary, PAN became mandatory for all taxpayers in 1976. Early PAN numbers were allotted manually, with each ward/circle receiving a specific set of numbers to avoid duplication. This manual series was discontinued in 1995.

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Types Of PAN Cards In India

There are different PAN cards for individuals, firms, companies and a few more. The actual number is 4. They are:

1. PAN Card for Indian Individuals

2. PAN Card for Indian Companies

3. PAN for Foreign Citizens

4. PAN for Foreign Companies

Structure of PAN Card

A PAN is a 10-digit alpha-numeric code that is used for the identification of every person. Here’s a breakdown of each part:

First 3 Letters

• The first three characters are alphabets from A to Z (for instance, ABC).

4th Letter

The 4th character denotes the code of the category of the taxpayer. Different categories are:

• A – Association of Persons

• B – Body of Individuals

• C – Company

• F – Firms

• G – Government

• H – Hindu Undivided Family

• L – Local Authority

• J – statutory/Artificial Judicial Person

• P – Individual

• T – Company formed for a Trust

5th Letter

• The 5th character is the first letter of one’s surname or the initial letter of the surname of the first person of the household in case of multiple occupants (for example, R for Ramesh).

Next 4 Digits

• The following four characters are numbers (0–9) randomly distributed.

Last Letter

• The last digit is also a character of the alphabet (A to Z).

New Design Of PAN Cards

Starting from January 1, 2017, the Income Tax Department introduced a new format for PAN Cards. Here are the key updates:

1. QR Code: A QR code is now included on the PAN Card, containing the cardholder’s details. This can be scanned for quick data verification.

2. Additional Sections: The card now features new sections for the cardholder’s name, father’s name, and date of birth.

3. Layout Changes: The positions of the PAN number and the cardholder’s signature have been adjusted.

These changes aim to enhance the security and usability of PAN cards. Furthermore, it is important to stay aware of the PAN Card scam and save yourself from fraud.

What Happens If You Don't Have A PAN Card?

Without a PAN card, you cannot file income tax returns, open certain bank accounts, or conduct high-value financial transactions, which may lead to penalties or transaction delays. Not having a PAN Card may result in the following scenarios for you:

1. The Income Tax Department of India imposes a flat 30% tax on your earnings and wealth. This rule applies to individuals, companies, and all taxable entities, including foreign nationals and firms registered outside India.

2. Without a PAN Card, you won’t be able to purchase a motor vehicle, buy immovable property worth over ₹10 lakh, or open a bank account, among other activities.

3. Businesses will also face significant restrictions on their financial operations and procurement activities.

Who Issues PAN Cards in India?

In India, PAN cards are issued by the Income Tax Department with the help of authorised district-level PAN agencies, UTIITSL, and Protean e-Gov Technologies Limited. There are numerous TIN-Facilitation Centres and PAN centres across the country managed by Protean e-Gov Technologies Limited to assist citizens in obtaining their PAN cards.

The issuance process operates on a public-private partnership (PPP) model to ensure efficiency and effectiveness in managing, processing, and issuing PAN applications.

Also Read: How To Locate Your UAN Number Online

General Uses And Benefits

A PAN card is very important in India as it helps in tracking all financial transactions, inflow and outflow of your money. The PAN system helps protect the economy against financial crimes and frauds, as the IT department uses this information to ascertain your tax and make you liable to pay it accordingly.

Uses Of PAN Card

A PAN card is essential for various financial and official activities.

For Tax Purposes

• Everyone should quote their PAN number while paying direct taxes.

• Needed at the time of filing the income tax returns.

For Business Registration

• Information on PAN is required when registering a business.

For Financial Transactions

PAN details must be provided for the following financial operations:

1. Real Estate: Transactions involving property valued ₹ 5 lakh or more by purchase, sale or exchange.

2. Vehicles: Purchasing or trading any car apart from a motorcycle.

3. Hotels/Travel: Expenses above ₹25,000 for accommodation government, restaurants, or foreign travel.

4. Bank Deposits: Deposits exceeding ₹50,000.

5. Investments:

• As on the balance sheet date, every person having a corpus of ₹50,000 or more acquired during the year— bonds, shares, mutual funds etc.

• Insurance policies of ₹50,000 and above or any high-risk-based policies.

6. Jewellery and Bullion: Any purchase of jewellery or bullion where the price paid exceeds ₹5 lakhs.

7. Fund Transfers:

• Sending money abroad.

• Switching of money from NRE account to NRO account and vice versa.

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PAN Card In Financial Transactions

A PAN card is a very important document that is mandatory for financial transactions. The uses of PAN in financial transactions have been enlisted below:

1. PAN needs to be quoted while paying direct taxes.

2. Taxpayers need to input their PAN when paying income tax.

3. PAN information needs to be furnished while registering a business.

PAN Card Eligibility Criteria

Any Indian citizen, including individuals, businesses, or entities earning taxable income or conducting financial transactions, can apply for a PAN card. The detailed eligibility criteria for getting a PAN card are given below:

1. Individuals

Anyone who has paid or is required to pay taxes to the Income Tax Department, based on the applicable tax slabs.

2. Business Owners and Professionals

Anyone running a business or professional practice with an annual turnover exceeding₹5 lakh in any assessment year.

3. Importers and exporters

Those who are liable to pay taxes or duties under the Income Tax Act or any other relevant laws.

4. Trusts and Charitable Organisations

All types of trusts, charitable organisations, and associations.

The requirement for a PAN Card is given under Section 139 of the Income Tax Act, 1961.

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How To Apply For A PAN Card?

The application procedure to apply for a PAN card is not difficult. It has been summarised below for you! The application can be made through the following three websites:

1. Income Tax Department

2. Protean e-Gov Technologies Limited ( NSDL)

3. UTIITSL

If you prefer, you can also apply offline at any district-level PAN agency. Whether you need a new PAN Card, want to correct or update your information, or need a duplicate or reprint of a lost card, the process is simple.

For a new PAN Card, Indian citizens and NRIs (including companies, NGOs, partnership firms, local bodies, trusts, etc.) should fill out Form 49A. Foreigners and foreign entities need to use Form 49AA. Submit these forms along with the required documents to the Income Tax PAN Services Unit.

After submitting your application, you can track its status using the acknowledgement number provided to you.

Apply For A PAN Card Online Via Income-Tax Portal (Instant E-PAN)

Earlier, users could get an e-PAN merely by filling up the detailed forms, but now those having a valid mobile number linked with an Aadhaar can get an e-PAN within minutes.

Below are the steps to apply for the PAN Card Online Via Income Tax Portal:

Step 1

You need to visit the Income Tax portal and click on the Instant e-PAN tab.

Step 2

Click on ‘Get New e-PAN’.

Step 3

Type your Aadhaar number and click ‘Continue’.

Step 4

It also requires users to enter a one-time password sent to their Aadhaar-linked mobile and accept certain terms. Click ‘Continue’.

Step 5

Your name, date of birth etc., from Aadhaar will be displayed. Click on ‘Continue’ with the icon to verify your e-mail, cheque the checkbox.

After Submission:

• You will receive an acknowledgement number with a confirmation message.

• The e-PAN is usually prepared within half an hour and can be downloaded from the e-PAN portal.

• To get a PAN card physical copy, make an application for reprint under the reprint section by paying extra charges.

Apply For A PAN Card Via NSDL

Visit the NSDL website, fill out Form 49A, upload the required documents, pay the application fee, and track your application using the acknowledgement number. The process to apply for a PAN Card via NSDL is given below:

Step 1

Visit the NSDL official website.

Step 2

Select the application type.

Step 3

Choose the category of your application.

Step 4

Enter all the required information, such as your name, date of birth, email ID, and mobile number.

Step 5

Agree to the terms and conditions.

Step 6

Enter the Captcha Code and click on ‘Submit’.

Step 7

You will be redirected to a new page, where you will get an acknowledgement number.

Step 8

Enter the relevant details from the next page.

Step 9

You will need to upload the relevant documents and make the payment to apply for the PAN.

Step 10

Your PAN Card and number will be issued to you within a few days.

Apply For A PAN Card Online Via The UTIITSL Website

Access the UTIITSL portal, choose the relevant form (49A or 49AA), submit your details and documents, pay the fees, and receive your PAN card after verification. Below are the steps to apply for the PAN Card Online Via UTIITSL:

Step 1

Go to the UTIITSL website.

Step 2

Select either a PAN Card for an Indian Citizen/NRI or a PAN Card for a Foreign Citizen.

Step 3

Click on the link ‘Apply for New PAN Card (Form 49A)’ in case of an Indian citizen and in case of an applicant being a foreign citizen; click on ‘Form 49AA’.

Step 4

Select the method of submission of documents, applicant type and type of PAN Card. Click ‘Submit’.

Step 5

Personal information, contact information, parents, and address sections must be filled in the form. Upload required documents.

Step 6

Complete the payment process.

After Submission:

• An acknowledgement of your receipt will appear on the screen and a copy will also be forwarded to your mail. For tracking purposes, use the reference number.

Read More: How To Know Your PAN Card Number?

How To Apply For A PAN Card Offline?

Collect Form 49A from an authorised centre, fill in the details, attach documents, submit the form, and pay the fees to get your PAN card after processing. You can apply for a PAN Card offline by following the steps given below:

Step 1: Visit the TIN-Protean e-Gov Technologies Limited website (NSDL). On the main page, find the “Downloads” section and click on ‘PAN’. This will take you to a new page where you need to click on ‘Form 49A’. The form will appear as a PDF. Download and print it out.

Step 2: Carefully fill in all the required details. Double-check to ensure everything is correct. Attach all the required documents, including a passport-sized photograph.

Step 3: You will need to pay a registration fee of Rs. 115.90. This can be done via a demand draft made payable to ‘Protean e-Gov Technologies Limited (PAN)’ in Mumbai.

Step 4: Place the completed form and photocopies of your documents in an envelope. Write ‘APPLICATION FOR PAN-N-Acknowledgement Number’ on the envelope.

Validity Of A PAN Card

The validity of a PAN Card is lifetime. You can update information on it in case you change your name or address; however, it does not affect the validity.

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Documents Required

The following table showcases the detailed list of required documents to apply for the PAN Card:

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How To Apply For A Duplicate PAN Card If You Have Lost Your Original PAN Card?

Apply for a duplicate PAN on the NSDL or UTIITSL portal by filling out the form, submitting proof of identity, and paying the prescribed fee to receive a reprinted PAN card. Follow the below mentioned steps for a better understanding.

1. Head to the TIN-Protean e-Gov Technologies Limited (formerly NSDL) or UTIITSL website to start your application. If you’re an Indian citizen, you’ll need to fill out Form 49A, and if you are a foreigner, fill out the form 49AA.

2. Complete the payment for the duplicate PAN card. You can pay online or via demand draft. Once that’s done, print out the form and send it to the following address:

“Income Tax PAN Services Unit,

Protean e-Gov Technologies Limited,

5th Floor, Mantri Sterling,

Plot No. 341, Survey No. 997/8,

Model Colony, Near Deep Bungalow Chowk,

Pune: 411 016.”

PAN Card Enquiry/Tracking/Online Status Check

Steps with which you can easily track the status of your PAN card application by following these steps:

Step 1: Click on the NSDL or UTIITSL website.

Step 2: Enter your acknowledgement number or your application number and solve the captcha code.

Step 3: You will then click the ‘Submit’ button to get the current status of your application on the screen.

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Business PAN Card

A business PAN card, which is issued in the form of a Permanent Account Number, is like a unique ID for your business in India. It’s crucial for a variety of tasks, such as filing taxes, opening bank accounts, ensuring legal compliance, claiming tax deductions, and handling other financial activities.

Essentially, it’s a key tool that helps keep your business operations smooth and in compliance with all rules and regulations.

Types Of Businesses Requiring A PAN Card

To establish business in India, securing a PAN card is essential. This requirement applies to all individuals and corporations, whether domestic or international, engaged in business activities within India.

It is important to note that even if your company earns income abroad, as long as it is registered in India and maintains an office or permanent establishment here, obtaining a PAN card remains mandatory.

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Automatic PAN Allotment For Corporates

The Ministry of Corporate Affairs has linked PAN allotment with the incorporation of companies under Section 434. This means:

Who benefits?

• Individual enterprises, private limited enterprises, public limited enterprises, and limited liability partnerships.

How it works:

• PAN is obtained at the time of incorporation and forms part of the incorporation certificate.

PAN Card Application Do's And Don'ts

It is easy to make some mistakes while applying for a PAN Card, and these mistakes might create problems for you in the future, so to avoid such circumstances, read the do’s and don’ts.

1. Please ensure that all details you provide match the information on your identity and address proof documents.

2. Before submitting the form, have your thumb impression attested by a magistrate or notary to avoid disqualification.

3. Provide your complete address and accurate contact details in the form.

4. Fill out the application form in capital letters and avoid making corrections or overwriting.

5. Do not use initials in the first name or last name fields.

6. If your PAN card is lost, stolen, or defaced, request a duplicate PAN instead of applying for a new one.

7. Use ‘Form 49A’ when requesting the allocation of a PAN.

8. Attach two recent colour photographs with dimensions of 3.5 cm x 2.5 cm.

9. As per Rule 114(4) of the Income Tax Rules, 1962, include proof of identity (POI) and proof of address (POA) with the address listed on the application.

10. If applicable, fill out column 14 of the application form with the representative assessee’s information and provide their identity and address proof.

11. Include your phone number and email address on the application form and ensure the correct ZIP code is entered in the address field.

12. Do not staple or pin the photograph.

13. Submit only address proof and identity proof documents that are in the applicant’s name.

14. Avoid using initials or abbreviating your name.

15. In the signature box, do not include any other information such as a date, designation, or rank.

16. Ensure your signature remains within the designated box.

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Legal Implications Of Having Multiple PAN Card

The term “multiple or duplicate PAN cards” refers to the issuance of more than one Permanent Account Number (PAN) to the same individual. As per Section 139A (7) of the Income Tax Act, it is prohibited for any individual to apply for, possess, or obtain more than one PAN under the new series.

Also read: Now You Can Pay Your Income Tax Using A Credit Card!

PAN Card Forms

To apply for a PAN card, you need to complete an application form. There are two types of forms available online and offline:

The Cost Of PAN Application

The fees for applying for a PAN Card depend on the application mode and dispatch type:

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How To Make Changes Or Corrections In A PAN Card?

Visit the NSDL or UTIITSL portal, fill out the correction form, upload the necessary documents, and pay the fees. The updated PAN card will be sent to your registered address. If you need to make changes or corrections to your PAN Card online, follow these steps:

Step 1: Visit the official site for PAN services.

Step 2: Select ‘Changes or Corrections in Existing PAN Data/Reprint of PAN Card (No changes in existing PAN Data)’.

Step 3: Enter the required information.

Step 4: Click on ‘Submit’.

Step 5: A token number will appear on the screen.

Step 6: Click on ‘Continue with PAN Application Form’ to proceed.

Step 7: Enter the necessary details on the next page.

Step 8: Choose how you would like to submit the application form.

Step 9: Indicate the type of PAN you are applying for.

Step 10: Provide your contact information.

Step 11: Upload the relevant documents.

Step 12: Click on ‘Submit’.

Step 13: Complete the payment process.

Your updated PAN Card will be dispatched to your address within two weeks from the date your application is received. You can check current status by visiting the official website.

Also Read: Different Ways To Check Your PAN Card Status

How Is PAN Allotted?

When you submit your PAN application along with the completed form and supporting documents, the PAN Centre will verify it against the original documents. For the online process, you’ll need to submit the form online and then send self-attested photocopies of the documents to Protean e-Gov Technologies Limited.

Assessing Officers will review your application details and cross-check them against the central database of existing PAN cardholders. If there’s no record of a previous PAN allotted to you, your request will be accepted and processed, and a PAN will be issued based on your taxpayer classification.

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Permanent Account Number (PAN) For e-KYC

You can use your PAN for e-KYC, which is a key requirement for many service providers and comes with several benefits, which have been listed below:

1. Quick Processing

PAN e-KYC allows you to share your information with a service provider in just a few minutes through secure channels, speeding up the process significantly.

2. Hassle-Free

PAN e-KYC makes managing documents and information much easier since it’s a paperless process.

3. Authorisation

The data shared through PAN e-KYC is authentic and legally accepted nationwide by all parties involved.

4. Secured Data

The information transferred between you and the service provider is secure and cannot be tampered with. Additionally, the data cannot be used without the consent of both parties involved.

To use e-KYC, a PAN Aadhaar link is mandatory. This linkage helps verify and allows you to access various services and benefits from different providers.

What Happens To Pan Card After Death?

After the passing away of a person, the Aadhar and PAN after death become invalid. However, the PAN must be retained until the taxpayer’s final income returns are filed and all financial matters are resolved.

MyPAN App

You can use the MyPAN App, which is available to both Android and iOS users, to apply for a new PAN Card, or a duplicate PAN Card or to get your information changed or updated. You can also download your PAN Card from there. It also provides a certain grievance redressal mechanism.

PAN Card SCAM

A PAN card is essential for identification as a taxpayer besides being useful for financial monitoring. However, the problem of misuse of PAN cards has risen, resulting in identity theft and financial fraud.

Some cases of PAN Card Fraud Cases

• Loan Fraud

Through your PAN, the criminals get loans you never sought, and these have to be repaid.

• Bank Fraud

This account which was opened with the PAN would have been involved in illegality.

• Scam Messages

This is because using the OTPs, one can be led to losing money after receiving fake SMS prompts on updates of the PAN.

• Credit Card Fraud

It means that the PAN details are not only capable of generating credit cards but they would be in your name.

• Jewellery Purchases

They can defraud you or make any purchase of any item, including costly ones, if they have your PAN.

Learn the complete details of the PAN Card scams and how to report them. Read this complete guide on Jaagruk Bharat.

Conclusion

Whether you are applying for a new PAN card or updating your existing details, understanding its importance and the application process can help you navigate the financial landscape more effectively. Stay informed and ensure your PAN card details are always up-to-date to avoid any inconveniences.

To know more about such documents and licensing, stay connected to Jaagruk Bharat. You can also share your thoughts or ask questions with us by reaching out to our community page.

Government Sources

NSDL website

UTIITSL Website

MyPAN App Playstore Link

MyPAN App Apple Store Link