Pancard

Permanent Account Number or PAN is a means of identifying various taxpayers in the country. PAN is a 10-digit unique identification alphanumeric number (containing both alphabets and numbers) assigned to Indians, mostly to those who pay tax .

permanent account number (PAN) is a ten-character alphanumeric identifier, issued in the form of a laminated “PAN card”, by the Indian Income Tax Department, to any “person” who applies for it or to whom the department allots the number without an application.

  • PAN Card is issued to individuals, companies, NRI or anyone who pay taxes in India.

There are three types of applications:
1) Application for allotment of PAN (Form 49 A)
This application should be used when the applicant has never applied for a PAN or does not have PAN allotted to him.

2) ‘Request for New PAN Card or/and Changes or Correction in PAN data’
This application should be used when PAN has been allotted already to applicant but a new PAN card is required or when data associated with the PAN (e.g. name of applicant / date of birth / address) is required to be updated in the records of Income Tax Department.

3) Application for allotment of PAN (Form 49AA) – applicable for foreign citizens
This form should be used when the applicant has never applied for a PAN or does not have PAN allotted to him. An applicant can visit Income Tax Department (ITD) website to find whether a PAN has been allotted to him or not.

A PAN card is a very crucial document for every Indian. Nowadays, it is not only used for tracking taxpayers but also some of the most important day to day transactions. It is also needed on every investment platform. Hence, it is imperative to know where and how PAN is used.

PAN is used for the following purposes:

    • Identity proof: A PAN card is widely accepted as a valid identification proof. It is a trusted identification document for all financial institutions and other organizations.
    • IT Return filing: All individuals who are eligible to pay income tax should file their IT returns. For filing IT returns, one should have the PAN card. It is a compulsory document for filing IT returns.
    • Opening a bank account: All the co-operative, public and private banks have made it mandatory for an individual to have a permanent account number (PAN) in order to open a savings or a current account.
    • (Note: Under Pradhan Mantri Jan Dhan Yojana, a person can open a bank account on the basis of other documents, such as Voter ID card and Aadhaar card)
    • Purchase and sale of property: One of the best benefits of PAN card is that it is accepted in formalities involved during buying or selling immovable assets. A PAN card is mandatory for a transaction valued Rs. 10 lakhs or more.
    • To claim income tax refund: Many times, a taxpayer needs to pay more than the actual tax amount. To get the refund, the individual needs to link his/her PAN card to the bank account.
    • For Startups: In order to start a business or a company, it is mandatory to have a PAN card in the name of the organization.
    • Tax deduction: A PAN card is very important for taxation. If an individual who is receiving Rs. 10,000 in the form of interest from either a savings account or an FD and has not linked his PAN card with the bank account, then the bank will debit 20% of TDS instead of 10%.
    • For Banker’s cheque and Pay order: A PAN card is essential while requesting for a pay order, bank cheques and drafts. If an individual is transacting more than Rs. 50,000 then he/she will need the PAN card to complete the transaction.
    •  Restaurant and hotel bills: If your hotel or restaurant bill exceeds Rs. 50,000 then for paying the bill you will need a PAN card.
    • To open a demat account: An individual should possess a PAN card to open a demat account, which is used to hold shares in the dematerialized form.
    • For taxation: A PAN card helps the Income Tax Department to assess an individual or entity’s monetary transactions. It helps in identifying persons involved in tax evasion. The PAN card has the name, photograph and other related information that even make it a valid identity proof.
    •  Low misuse chances: The possibility of PAN card misuse is minimal. Notably, a PAN card will not change even if it is lost or stolen.
    •  For tax evaluation: A PAN card is a tool that evaluates total tax revenue in India.
    • Easy accessibility: A minor can also avail a PAN card by providing his/her guardian’s PAN detail

Besides all the PAN card advantages, linking PAN with the Aadhaar card also brings some additional perks. Notably, it is compulsory to link PAN card with Aadhaar card if an individual has the latter. This will help the government to detect duplicate PAN under one name. Linking both is also mandatory for paying taxes.

Documents Required for Pan-

For Individuals & HUF:

1. Documents accepted as Proof of Identity :

Copy of (any 1)

  • Voter’s ID card

  • Passport  

  • Aadhar card

  • Ration card having Applicant’s photo

  • Driving License

  • Photo ID card which are issued by central government, state government or any undertaking of

  • public sector​

  • A certificate issued by a bank that should be duly attested, containing applicant’s photo and the bank a/c number

  • Arm’s license

  • School leaving certificate

Additional Notes:

(i) In case of a minor applicant, parents’/guardian’s proof of identity shall be deemed to be the proof of identity and address for the minor applicant.

(ii) In case of HUFs, an affidavit by the karta of the HUF stating the name, father’s name and address of all the coparceners on the date of application will work as a proof of identity.

2.Documents accepted as proof of Address :

Copy of (any 1)

  • Electricity Bills

  • Landline connection Bills

  • Bills for Broadband connection

  • Aadhaar card

  • Passbook of Post office account containing applicant’s address

  • Latest order for property tax assessment

  • Domicile certificate allotted by government

  • Allotment letter of accommodation issued by Central or State Government of not more than three years old

  • Property Registration Documents

3. Documents accepted as Proof of Date of Birth :

Copy of (any 1)

  • Birth certificate issued by any office that is certified for issuing Birth as well as Death Certificate, like Municipal Authority

  • Birth Certificate issued by Indian Consulate

  • Matriculation certificate from a recognized board

  • Aadhaar Card

For Company, Trust, LLP, Firm, BOI, AOP & Local Authority

COMPANY

  •  Certificate of Registration issued by the Registrar of Companies (In Copy)
  •  Company PAN Card (In Copy) – Only in Case of Lost PAN Card / Correction in PAN Card
  •  ROCs certificate for name change (FOR CHANGES IN PAN CARD) (In Copy)

LLP

  •  Certificate of Registration issued by the Registrar of LLPs (In Copy)
  •  LLP PAN Card (In Copy) – Only in Case of Lost PAN Card / Correction in PAN Card
  •  Registrar of LLPs certificate for name change (FOR CHANGES IN PAN CARD) (In Copy)
  •  Partnership deed (In Copy)

FIRMS / PARTNERSHIP FIRM

  •  Certificate of Registration issued by the Registrar of Firms (In Copy)
  •  Firm PAN Card (In Copy) – Only in Case of Lost PAN Card / Correction in PAN Card
  •  Partnership deed (In Copy)
  •  Registrar of Firms certificate for name change (FOR CHANGES IN PAN CARD) (In Copy)

TRUST / SCHOOLS

  •  Certificate of registration number issued by Charity Commissioner (In Copy)
  •  Trust Deed (In Copy)
  •  Revised Deed/ Agreement (In Copy) (FOR CHANGES IN PAN CARD)
  •  Revised registration certificate (In Copy) (FOR CHANGES IN PAN CARD)

AOP, BOI & Local Authority

  •  Certificate of registration number issued by Charity Commissioner (In Copy)
  •  Copy of Agreement (In Copy)
  •  Certificate of registration number issued by registrar of cooperative society (In Copy)
  •  Certificate of registration number issued by any competent authority (In Copy)
  •  Document originating from any Central or State Government Department establishing identity and address of such person (In Copy)