PAN Application

A Permanent Account Number (PAN) is a unique 10-digit code assigned to eligible taxpayers by the Income Tax Department. This 10-digit code entails both alphabets and numbers. The PAN system lets a tax authority keep track of taxpayers and their finances that fall under the tax regime. All the tax-based details of the taxpayer are recorded against an assigned PAN number.

Since PAN entails a unique code, it is assigned on an individual basis- meaning no two people can have a single PAN.

The allocation of PAN to an entity leads to a grant of a PAN card issued by the IT department. This card highlights key taxpayer information such as name, DOB, and father’s or spouse’s name. Plus, it has a taxpayer’s photograph.

The PAN card can serve as legit evidence in most government-based licenses and registration. It helps authorities affirm the applicant’s identity or DOB. Your PAN card does not have a limited validity.

On March 28, 2023, the Finance Ministry announced the extension of the deadline for PAN-Aadhaar linking till June 30, 2023. The citizens are required to complete this undertaking on the IT department portal and against a fee of Rs 1000.

If someone missed this extended deadline, their PAN shall become non-functional. But, it can be reactivated within 30 days upon intimation of the Aadhaar to the competent authority.

There are many PAN centers pan India that work under Protean eGov Technologies Ltd and let users secure their PAN.

The process concerning PAN facilitation operates on a model called PPP (Public Private Partnership). This model helps with the seamless processing and management of PAN applications.

PAN cards are accorded to various entities falling under the tax regime. This is what serves as a ground for PAN classification. The following types of PAN are available in the status quo:

• PAN Card for Indian Individuals
• PAN Card for Indian Entities
• PAN for Foreign Nationals
• PAN for Foreign Entities

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How to file an application for a PAN card?

• Online Method
• Offline Method

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Securing a PAN card is an absolute mandate for taxpayers because it helps tax authorities to keep eye on your cash flow. PAN lets taxpayers pay taxes, receive tax refunds, and have correspondence with the IT department. PAN continues to remain a mandatory gateway to execute a large number of fiscal transactions.

The card holders can also use a PAN card as an identity proof to serve various purposes such as applying for a license or enrollment for a specific course or opening a demand account.

Common Uses of PAN in Financial Transactions

• The taxpayer needs to furnish PAN details while paying direct taxes
• PAN details need to be quoted while paying income tax.
• Furnishing PAN information is vital for company registration or incorporation
• Almost every type of financial transaction requires PAN information.
• What are the benefits of having a PAN from a Taxpayer’s standpoint?
• Since a PAN card entails basic information, including the contact details of the taxpayer, it can serve as a legit identity proof.
• PAN helps orchestrate tax payments and keep all past transactions intact, helping taxpayers to keep up with financial dynamics.
• Since PAN has a unique code, its duplication or misuse is practically impossible.
• PAN can help sign up for different utility connections such as telephone, power connection, gas, and internet.
• Opening of bank account becomes hassle-free with a PAN card at your disposal
• A PAN card also comes in handy when taking a vital decision like a property purchase.
• It can help get a new credit card from designated banks.

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If the eligible taxpayer chooses to skip the Pan card, he/she may encounter the following consequences:

• 30 percent tax deduction on earnings and wealth shall come into effect. This condition applies to every taxable individual, entity, overseas national, and entity situated abroad.
• The possibility of buying any automobile, or immovable property worth exceeding Rs 10 lac will become zero.
• Opening a bank account shall not be possible without a PAN
• Businesses cannot execute a large pool of fiscal transactions or procurement.

Filing a PAN card application also requires the submission of mandatory paperwork, which goes along with Form 49A or 49AA. The section below shows the list of documents that one must share with authority without fail.

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For an individual applicant

Identity proof-Aadhar or Voter ID

Address proof- water bill, power bill, credit card statement or bank account statement

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For Hindu Undivided Family (HUF)

Affidavit accorded by the HUF’s Karta. It must reflect the name, address, and father’s name.

Individual applicants falling under HUF must submit address proof, identity proof, and date of birth proof.

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For companies, partnership firms, and Trusts

Copy of certification of incorporation accorded by the MCA (for companies falling under the Companies Act, 2013)

Partnership Deed (for partnership firm)

Registration Certificate Number (for trusts)

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For Association of Persons

Agreement copy or registration number accorded by the Charity Commissioner or Registrar of Co-operative Society.

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For foreign nationals

Identity proof such as a copy of OCI, passport copy, or copy of PIO issued by the competent authority.

Address proof in the form of a bank statement, copy of VISA, certificate of registration accorded by FRO, etc.

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