Permanent Account Number is a number allotted to a person by the Assessing Officer for the purpose of identification. PAN of the new series has 10 alphanumeric characters and is issued in the form of laminated card with photograph.
PAN enables the department to link all transactions of the “person” with the department. These transactions include tax payments, TDS/TCS credits, returns of income, specified transactions, correspondence, and so on. PAN, thus, acts as an identifier for the “person” with the tax department.
Section 139A of the Income Tax Act provides that every person whose total income exceeds the maximum amount not chargeable to tax or every person who carries on any business or profession whose total turnover or gross receipts exceed Rs.5 lakhs in any previous year shall apply for PAN. Besides, any person not fulfilling the above conditions may also apply for allotment of PAN.
Transactions in which quoting of PAN is Mandatory in following transactions:
| S.N. | Nature of transactions | Value of transaction |
|---|---|---|
| 1 | Sale or purchase of a motor vehicle (Other than two wheeler) | All such transactions |
| 2 | Opening an account [other than a time-deposit referred to at Sl. No. 12 and a Basic Savings Bank Deposit Account] with a bank/co-operative bank | All such transactions |
| 3 | Making an application to a bank/co-operative bank/any other company or institution, for issue of a credit or debit card | All such transactions |
| 4 | Opening of a demat account | All such transactions |
| 5 | Payment to a hotel or restaurant against a bill or bills at any one time. | Payment in cash of an amount exceeding Rs. 50,000 |
| 6 | Payment in connection with travel to any foreign country or payment for purchase of any foreign currency at any one time. | Payment in cash of an amount exceeding Rs. 50,000 |
| 7 | Payment to a Mutual Fund for purchase of its units. | Amount exceeding Rs. 50,000 |
| 8 | Payment to a company or an institution for acquiring debentures or bonds issued by it. | Amount exceeding Rs. 50,000 |
| 9 | Payment to the Reserve Bank of India for acquiring bonds issued by it. | Amount exceeding Rs. 50,000 |
| 10 | Deposit with a bank/co-operative bank/post office | Deposits in cash exceeding Rs. 50,000 during any one day |
| 11 | Purchase of bank drafts/pay orders/banker’s cheques from a bank/co-operative bank | Payment in cash for an amount exceeding Rs. 50,000 during any one day |
| 12 | A time deposit with bank/co-operative bank/post office/Nidhi/non-banking financial company | Amount exceeding Rs. 50,000 or aggregating to more than Rs. 5,00,000 during a financial year |
| 13 | Payment for one or more pre-paid payment instruments to a bank/co-operative bank/any other company or institution | Payment in cash or by way of a bank draft or pay order or banker’s cheque of an amount aggregating to more than Rs. 50,000 in a financial year |
| 14 | Payment as life insurance premium to an insurer | Amount aggregating to more than Rs. 50,000 in a financial year |
| 15 | A contract for sale or purchase of securities (other than shares) | Amount exceeding Rs. 1,00,000 per transaction |
| 16 | Sale or purchase, by any person, of shares of a company not listed in a recognised stock exchange | Amount exceeding Rs. 1,00,000 per transaction |
| 17 | Sale or purchase of any immovable property | Amount exceeding Rs. 10,00,000 or valued by stamp valuation authority referred to in section 50C at an amount exceeding Rs. 10,00,000 |
| 18 | Sale or purchase of goods or services of any nature other than those specified at Sl. Nos. 1 to 17 of this Table by any person | Amount exceeding Rs. 2,00,000 per transaction |
Apart from above PAN is mandatory for payment of direct taxes, to file income tax returns and to avoid deduction of tax at higher rate.
You can fill up the PAN application Form 49A Online or offline via NSDL / UTI offices.
Steps For Online Application
1. Only Indian citizens should use this form for submitting application for allotment of PAN. Indian citizens located outside India should also use this form.
2. Applicant will initially register by selecting Form 49A along with category and title of the applicant and enter the required details and submit. A token number will be generated and displayed to the applicant before filling the form. This token number would also be sent on e-mail ID (provided in the application form) for reference purpose. There is a facility to save the details entered in the application form such that this data can be viewed and edited by the applicant prior to its final submission by using this temporary token number.
3. Applicant can select any one of the four options while filling online PAN application
4. If the data submitted fails in any format level validation, a response indicating the error(s) will be displayed on the screen. The applicant shall rectify the error(s) and re-submit the form.
5. If there are no format level error(s), a confirmation screen with data filled by the applicant will be displayed.
6. The applicant may either edit or confirm the same
7. On confirmation, and in case of credit card / debit card / net banking payment (on successful payment), an acknowledgment screen with downloadable acknowledgement receipt will be displayed. An e-mail containing this acknowledgement receipt (in PDF) as well as payment receipt (in PDF) as attachments will be sent to applicant’s e-mail ID mentioned in the application.
8. Applicant shall save and print this acknowledgment.
9. ‘Individual’ applicants making “Application for allotment of new PAN” should affix two recent colour photographs (3.5 cm x 2.5 cm) in the space provided in the acknowledgment. The photograph should not be stapled or clipped to the acknowledgment. (The clarity of the image on PAN card will depend on the quality and clarity of the photograph affixed on the form).
10. Signature / Left hand thumb impression should be provided across the photo affixed on the left side of the acknowledgement in such a manner that portion of signature/impression is on photo as well as on acknowledgement receipt.
11. The signature/ left thumb impression SHOULD NOT BE ON THE PHOTOGRAPH affixed on right side of the acknowledgement. If there is any mark on this photograph such that it hinders the clear visibility of the face of the applicant, the application may not be processed.
12. Signature / left thumb impression should only be within the box provided in the acknowledgment. In case of non-individual PAN applicants, the acknowledgement receipt shall be signed by the authorized signatory (Karta in case of HUF, Director in case of Company, Partner in case of Partnership Firm / LLP, Trustee in case of Trust and Authorized signatory in remaining categories). In case of PAN applications from non-individuals, Seal and/or Stamp is not required on PAN application Form 49A.
13. Thumb impression, if used, should be attested by a Magistrate or a Notary Public or Gazetted Officer, under official seal and stamp.
14. If Physical mode of submission is selected in Online PAN application then the acknowledgment duly signed, affixed with photographs (in case of ‘Individuals’) along with demand draft, if any, and proof of identity, proof of address and proof of date of birth (applicable for Individuals & Karta of HUF) needs to be sent to NSDL e-Gov at ‘Income Tax PAN Services Unit, NSDL e-Governance Infrastructure Limited, 5th Floor, Mantri Sterling, Plot No. 341, Survey No. 997/8, Model Colony, Near Deep Bungalow Chowk, Pune – 411 016’.
15. For e-KYC & e-Sign, e-Sign based or DSC based online PAN application, there is no need to send physical documents to NSDL e-Gov as all these are paperless mode of PAN application.
16. It is mandatory to quote Aadhaar /Enrolment ID of Aadhaar application form, for making an application for allotment of Permanent Account Number (Form 49A) and copy of Aadhaar allotment letter / Copy of Enrolment ID receipt of Aadhaar application form should also be enclosed along with the acknowledgement.
17. Superscribe the envelope with ‘APPLICATION FOR PAN — N-15 digit Acknowledgement Number’ (e.g. ‘APPLICATION FOR PAN — N-881010200000097’).
18. Your acknowledgment, demand draft, if any, and proofs, should reach NSDL within 15 days from the date of online application.
19. Applications received with demand draft as mode of payment shall be processed only on receipt of relevant proofs and realisation of payment.
20. Applications received with credit card / debit card / net banking as mode of payment shall be processed on receipt of relevant documents (acknowledgment and proofs).
Documents are required at the time of applying for PAN Card:
| Sr No | Applicant | Documents as proof of identity, address and date of birth |
|---|---|---|
| 1 | Individual who is a citizen of India | (A) Proof of identity—
(i) Copy of,─ (a) elector’s photo identity card ; or (b) ration card having photograph of the applicant; or (c) passport; or (d) driving licence; or (e) arm’s license; or (f) AADHAR Card issued by the Unique Identification Authority of India; or (g) photo identity card issued by the Central Government or a State Government or a Public Sector Undertaking; or (h) Pensioner Card having photograph of the applicant; or (i) Central Government Health Scheme Card or Ex-servicemen Contributory Heath Scheme photo card; or (ii) certificate of identity in original signed by a Member of Parliament or Member of Legislative Assembly or Municipal Councillor or a Gazetted Officer, as the case may be; or (iii) bank certificate in original on letter head from the branch (along with name and stamp of the issuing officer) containing duly attested photograph and bank account number of the applicant. Note: In case of a person being a minor, any of the above documents of any of the parents or guardian of such minor shall be deemed to be the proof of identity. (B) Proof of address— (i) copy of the following documents of not more than three months old ─ (a) electricity bill; or (b) landline telephone or broadband connection bill; or (c) water bill; or (d) consumer gas connection card or book or piped gas bill; or (e) bank account statement or as per Note 1; or (f) depository account statement ; or (g) credit card statement; or (ii) copy of,─ (a) post office pass book having address of the applicant; or (b) passport; or (c) passport of the spouse; or (d) elector’s photo identity card; or (e) latest property tax assessment order; or (f) driving licence; or (g) domicile certificate issued by the Government; or (h) AADHAR Card issued by the Unique Identification Authority of India; or (p) allotment letter of accommodation issued by the Central Government or State Government of not more than three years old; (q) property registration document; or (iii) certificate of address signed by a Member of Parliament or Member of Legislative Assembly or Municipal Councillor or a Gazetted Officer, as the case may be; or (iv) employer certificate in original. Note 1. In case of an Indian citizen residing outside India, copy of Bank Account Statement in country of residence or copy of Non-resident External bank account statements shall be the proof of address. Note 2: In case of a minor, any of the above documents of any of the parents or guardian of such minor shall be deemed to be the proof of address. (C) Proof of date of birth ─ copy of,─ (a) birth certificate issued by the Municipal Authority or any office authorised to issue Birth and Death Certificate by the Registrar of Birth and Deaths or the Indian Consulate as defined in clause (d) of sub-section (1) of section 2 of the Citizenship Act, 1955 (57 of 1955); or (b) pension payment order; or (c) marriage certificate issued by Registrar of Marriages; or (d) matriculation certificate; or (e) passport; or (f) driving licence; or (g) domicile certificate issued by the Government; or (h) (h) affidavit sworn before a magistrate stating the date of birth |
| 2 | Hindu undivided Family | (a) An affidavit by the karta of the Hindu Undivided Family stating the name, father’s name and address of all the coparceners on the date of application; and
(b) copy of any document applicable in the case of an individual specified in serial number 1, in respect of karta of the Hindu undivided family, as proof of identity, address and date of birth. |
| 3 | Company registered in India | Copy of Certificate of Registration issued by the Registrar of Companies. |
| 4 | Firm (including Limited Liability Partnership) formed or registered in India | (a) Copy of Certificate of Registration issued by the Registrar of Firms/Limited Liability Partnerships; or
(b) copy of Partnership Deed. |
| 5 | Association of persons (Trusts) formed or registered in India | (a) Copy of trust deed; or
(b) copy of Certificate of Registration Number issued by Charity Commissioner. |
| 6 | Association of persons (other than Trusts) or body of individuals or local authority or artificial juridical person formed or registered in India | (a) Copy of Agreement; or
(b) copy of Certificate of Registration Number issued by Charity Commisioner or Registrar of Co-operative Society or any other Competent Authority; or (c) any other document originating from any Central Government or State Government Department establishing Identity and address of such person |
Source: Income Tax Act, Rules, NSDL, UTI
(For any query you can write to Author CA Chirag Chauhan on [email protected])
Disclaimer: The contents of this article are for information purposes only and does not constitute advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer to relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up. The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.
(Republished with Amendments by Team Taxguru)
UTI PAN Service Center of Vashi are wrongly insisting for Notarized copy of partnership deed in case of PAN application for partnership firm while only word “copy of partnership deed” is written.we have made strong objections to them. however NSDL service center have accepted the same. while raising the issue with Income Tax department of PAN service center they have stated that UTI could have their own rules.Thus we insist that there should be uniform rules for every thing further Modi government has already stated that self certified copies are sufficient instead of Notarized copies.
AADHAR CARDS ARE NOT ISSUED WITH EXPANSION OF INITIALS.DUE TO THIS PEOPLE
ARE UNABLE TO PRODUCE IT AS PROOF OF IDENTITY FOR ALL PURPOSES INCLUSIVE
OF PAN