PAN Meaning, Significance, who can apply & Procedure

Question: – What is PAN?

Answer: – Permanent Account Number (PAN) is a ten-digit alphanumeric identifier, issued by Income Tax Department. Each assessee (e.g. individual, firm, company etc.) is issued a unique PAN.

Question: – What fourth and fifth digit of PAN signifies?

Answer:-  4TH & 5TH DIGIT OF PAN NO. HERE IT IS:

ASSUME PAN NO. IS AAASA1234A

AAA S A 1234 A
|—– | | | —– | |
5 4 3 2 1
1.Alphabetic check Digit
2.Sequential number running from 0001 to 9999
3.First character of assessee’s last name/surname
4.Status
5.Alphabetic series running from AAA to ZZZ

Permanent Account Number (PAN) is a ten-digit alphanumeric identifier, issued by Income Tax Department. Each assessee (e.g. individual, firm, company etc.) is issued a unique PAN.

1-5 field are alpha(A to Z)
6-9 field are numeric(0-9)
10 field is alpha(A-Z)

Forth field of pan denotes assessee status :
for individual=”P”
for Company=”C”
for Trust =”T”
for partnership firm=”F”
Body of Individual:”B”

Association of persons:”A”
HUF=”H”
Local authority:”L”
Govt.=”G”
judicial artificial person:”j”

2.Fifth field of PAN denotes NAME

In case of individual: Surname/last name(as given in pan application)
for ex. in case of Ram Kumar(individual)
5th field will be “K”
4th field will be “P”
In case of Ram Kumar Gupta(Individual)
5th field will be “G”
4th field will be “P”

In case of All Other Assesees (not confirmed for all the assessee)
5th field will be first letter of Name/first Name
for ex : In case of Suresh Jindal (HUF) (confirmed)
5th field will be “S”(first letter of First name i.e Suresh)
4th field will be “H”(for Huf)

for ex: in case of ABB LTD(confirmed)
5th field will be “A”(first letter of First name)

4th field will be “C”(for company)

Question: – Who can apply for PAN?

Answer:- All existing assessees or taxpayers or persons who are required to file a return of income, even on behalf of others, must have a PAN. Any person, who intends to enter into economic or financial transactions where quoting PAN is mandatory, must also have a PAN.

Question: – Who can apply on behalf of minor, lunatic, idiot, mentally retarded, deceased and wards of court?

Answer:- Section 160 of IT Act, 1961 provides that a minor, lunatic, idiot, mentally retarded, deceased, wards of court and such other persons may be represented through a Representative Assessee.

In such cases,

* in the application for PAN, details of the a minor, lunatic, idiot, mentally retarded, deceased, wards of court, etc. should be provided.

* Details of representative assessee have to be provided in item 14 of the application for PAN.

Question:- Is it compulsory to quote PAN on ‘return of income’?

Answer:- Yes, it is compulsory to quote PAN on return of income.

Question: – Do I need to apply for a new PAN when I move from one city to another?

Answer:- Permanent Account Number (PAN), as the name suggests, is a permanent number and does not change.

Changing the address though, may change the Assessing Officer. Such changes must, therefore, be intimated to ITD so that the PAN database of ITD can be updated. One can intimate change in address by filling up the form for Request for New PAN Card or/and Changes or Correction in PAN data. This form can be submitted at any TIN-FC or online at NSDL-TIN website.

Question: – Can I obtain or use more than one PAN?

Answer: – Obtaining/possessing more than one PAN is against the law and may attract a penalty upto Rs.10,000. Therefore it is advisable not to obtain/possess more than one PAN. If you have more than one PAN, you should surrender the unused PAN by logging into ITD website at www.incometaxindia.gov.in

Question: – How do I apply for PAN?

Answer: – You can apply for PAN by filling up Form 49A: Application for Allotment of Permanent Account Number (PAN application form). You can also apply for PAN online through NSDL-TIN website.

Question: – Can I make an application for PAN on plain paper?

Answer: – No. Application for PAN can be made only in Form 49A notified by Central Board of Direct Taxes on 29.05.2003.

Question: – Where can I obtain application form for PAN (Form 49A)?

Answer: – You can obtain the application form for PAN (Form 49A) in the format prescribed by Income Tax Department from TIN-Facilitation Centers (TIN-FCs), any other stationery vendors providing such forms or from NSDL-TIN website.

Question: – Are there any charges for obtaining Form 49A?

Answer: – The form is freely downloadable from NSDL-TIN website. You can also obtain the form from TIN-FCs.

Question: – Where should I submit my PAN application?

Answer: – You can submit your duly filled and signed PAN application form along with the supporting documents to any of the TIN-FCs or PAN Centers managed by NSDL.

Question: – What are the charges to be paid while submitting Form 49A?

Answer: –

If Physical PAN Card is required:
While submitting PAN application form, applicant will have to indicate whether physical PAN card is required. If applicant opts for physical PAN Card, then physical PAN card will be printed & dispatched at communication address. The e-PAN card in PDF format will be dispatched at e-mail ID mentioned in PAN application form, if the same is provided. Fees applicable are as follows:-

Sr. No.	Particulars	Fees (exclusive of applicable taxes)(₹)	Fees (inclusive of applicable taxes)(₹)
PAN applications submitted Online using physical mode (i.e. Physical documents forwarded to NSDL e-Gov.)
1	Dispatch of physical PAN Card in India (Communication address is Indian address)	91	107
2	Dispatch of physical PAN Card outside India (where foreign address is provided as address for communication)	862	1,017
PAN applications submitted Online through paperless modes (* e-KYC & e-Sign / * e-Sign scanned based / DSC scanned based):
1	Dispatch of physical PAN Card in India (Communication address is Indian address)	86	101
2	Dispatch of physical PAN Card outside India (where foreign address is provided as address for communication)	857	1,011

If Physical PAN Card is not required: PAN applicant will have to indicate at the time of submission of PAN application, if the physical PAN Card is not required. In such cases, email ID will be mandatory & e-PAN Card will be sent to the PAN applicant at the email ID. Physical PAN Card will not be dispatched in such cases. Fees applicable are as follows:-

Sr. No.	Particulars	Fees (exclusive of applicable taxes)(₹)	Fees (inclusive of applicable taxes)(₹)
PAN applications submitted Online using physical mode (i.e. Physical documents forwarded to NSDL e-Gov.)
1	e-PAN Card will be dispatched at the email ID mentioned in the PAN application form	61	72
PAN applications submitted Online through paperless modes (* e-KYC & e-Sign / * e-Sign scanned based / DSC scanned based):
1	e-PAN Card will be dispatched at the email ID mentioned in the PAN application form	56	66

Note: For above mentioned e-KYC along with e-Sign and e-Sign scanned based PAN application, additional e-Sign charges would be levied along with applicable tax.

Question:  What is Aadhaar based e-KYC for allotment of instant e-PAN?

Aadhaar based e-KYC (electronically Know Your Customer) is an online service provided by UIDAI for verification of identity and address of Aadhaar holder. Income Tax Department leverages this Aadhaar based e-KYC for instant e-PAN allotment.

Question: Who can apply for allotment of instant e-PAN through Aadhaar e-KYC?

This facility is available to individual PAN applicants who have been allotted an Aadhaar number by the Unique Identification Authority of India (UIDAI) and is required to file PAN application in Form 49A being an Indian citizen. Except Minors and others covered u/s 160 of Income Tax Act, 1961.

Question: Can foreign citizens apply for e-PAN using Aadhaar e-KYC?

No.

Question Is there any mandatory requirement to apply e-PAN using Aadhaar e-KYC?

Yes, Valid Aadhaar and mobile number of PAN applicant should be registered with Aadhaar.

Question: – What will I receive on submission of the PAN application form to a TIN-FC?

Answer:- You will receive an acknowledgment with a unique 15-digit acknowledgment number on submission of the PAN application form.

Question: – How can I enquire about the status of my application?

Answer:-

(i) You can inquire the status of your application by accessing NSDL-TIN website at the “Status track” option and quoting your unique 15-digit acknowledgement number after three days of your application.
(ii) You can also obtain status of your application through SMS (Short messaging service) using mobile phones. For this, you have to type the word “PAN” followed by your 15-digit acknowledgement number and send it to 53030. For example: SMS PAN 012345678901234 to 53030.

Question: – How do I fill the application form 49A?

Answer: – You should fill the application form legibly in English capital letters with black ink. You should read all the instructions before filling up Form 49A.

Question: – Is a photograph compulsory for making an application for PAN?

Answer:- ‘Individual’ applicants should affix a recent colour photograph (size 3.5 cm x 2.5 cm) in the space provided on the form. The photograph should not be stapled or clipped to the form. The applicant should not sign across the photograph. The clarity of image on PAN card will depend on the quality and clarity of photograph affixed on the form.

Question: – What documents should I submit along with the application form?

Answer:- You have to submit the following documents with the application form:
A] Proof of identity (POI)
B] Proof of address (POA)
The documents for POI and POA depend on the citizenship and the status of the applicant.

Question: – Which documents will serve as proof of identity in case of individual applicants and HUF applicants?

Answer:-

Individual Applicants who are citizens of India and located within India at the time of application for PAN: Copy of any one of the following will serve as a proof of identity:

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:

• Document being submitted should be in the full name of the applicant as mentioned in the PAN application.
• In case the PAN applicant is a minor, any of above documents of any of the parents or guardian of such minor shall serve as proof of identity.
• In case PAN application is made on behalf of a HUF, any of above documents in respect of karta of the HUF will serve as proof of identityalong with 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

2. Citizen of India located outside India at the time of application for PAN: Copy of passport will serve as a proof of identity

3. Foreign Citizen located in India at the time of application for PAN :- Copy of passport and Copy of Person of Indian Origin (PIO) card issued by Government of India will serve as a proof of identity.

4. Foreign Citizen located outside India at the time of application for PAN :- Copy of any one of the following will serve as a proof of identity:

(a) copy of Passport; or

(b) copy of person of Indian Origin card issued by the Government of India; or

(c) copy of Overseas Citizenship of India Card issued by Government of India; or

(d) copy of other national or citizenship Identification Number or Taxpayer Identification Number duly attested by “Apostille” (in respect of countries which are signatories to the Hague Apostille Convention of 1961) or by Indian embassy or High Commission or Consulate in the country where the applicant is located or authorised officials of overseas branches of Scheduled Banks registered in India.

Question: – What documents should be submitted as proof of address for individual applicants and HUF applicants?

Answer:-

1. Individual and HUF Applicants who are citizens of India and located within India at the time of application for PAN: Copy of any one of the following will serve as a proof of address:

2. Electricity bill*

3. Telephone bill*

4. Depository account statement*

5. Credit card statement*

6. Bank account statement*

7. Rent receipt*

8. Employer certificate*

9. Ration card

10. Passport

11. Voter’s identity card

12. Property tax assessment order

13. Driving license

14. Certificate of address signed by a Member of Parliament or Member of Legislative Assembly or Municipal Councilor or a Gazetted Officer.

15. AADHAR Card issued by the Unique Identification Authority of India

Note:

• *For serial numbers 1 to 7, proof of address should not be more than six months old from the date of application.
• Document being submitted should be in the full name of the applicant as mentioned in the PAN application.
• In case the PAN applicant is a minor, any of above documents of any of the parents or guardian of such minor shall serve as proof of address.
• In case PAN application is made on behalf of a HUF, any of above documents in respect of Karta of the HUF will serve as proof of address.
• It is mandatory for individuals and HUF to mention their residential address on the PAN application and to submit valid proof of the same.
• If office address is selected as communication address by Individual and HUF applicants, then POA for office address is also required.

2. Citizen of India located outside India at the time of application for PAN :-Copy of any one of the following will serve as a proof of address:

• Passport
• Bank account statement in country of residence
• NRE bank account statement**

3. Foreign Citizen located in India at the time of application for PAN :- Copy of any one of the following will serve as a proof of address:

(a) copy of Passport; or

(b) copy of person of Indian Origin card issued by the Government of India; or

(c) copy of Overseas Citizenship of India Card issued by Government of India; or

(d) copy of other national or citizenship Identification Number or Taxpayer Identification Number duly attested by “Apostille” (in respect of countries which are signatories to the Hague Apostille Convention of 1961) or by Indian embassy or High Commission or Consulate in the country where the applicant is located or authorised officials of overseas branches of Scheduled Banks registered in India.

In case ‘Office Address (of India)’ is mentioned in application made by foreign citizens , then it is mandatory to provide all five documents mentioned below as proof for office address.

Copy of Visa application to Indian authorities + Copy of Visa granted + Copy of appointment letter/contract from Indian Company + Certificate (in original) of address in India of applicant issued by authorized signatory of employer on employer’s letter head mentioning the PAN of the employer + copy of PAN card for the PAN mentioned in the employer’s certificate.

4. Foreign Citizen located outside India at the time of application for PAN :- Copy of any one of the following will serve as a proof of address:

• Passport
• Other National ID attested by Indian Embassy/Consulate/High Commission/Apostille
• Bank account statement in country of residence, duly attested by Indian Embassy/High Commission / Consulate / Apostille in the country where applicant is located
• Person of Indian Origin (PIO) card issued by Government of India
• NRE bank account statement**

Note:

** showing at least two customer induced transactions in last six months period and duly attested by Indian Embassy / Consular office / High commission or Apostille or by the manager of the bank in which the account is held. The applicant may be a joint holder.

Question: – Which documents will serve as proof of identity and address for applicants other than individual and HUF?

Answer:–

List of documents which are acceptable as proof of identity and address for applicants other than individual and HUF is as below:

1. Having office of their own in India:

Type of Applicant	Documents for proof of identity and address
Company	Copy of certificate of registration issued by Registrar of Companies or corporate identity number allotted by the Registrar under section 7 of the Companies Act, 2013 (18 of 2013).
Firms	Copy of certificate of registration issued by Registrar of firms or Copy of Partnership Deed.
AOP (Trusts)	Copy of trust deed or Copy of certificate of registration number issued by Charity Commissioner.
AOP/BOI/Local Authority/Artificial Juridical Person	Copy of agreement or Copy of certificate of registration number issued by Charity Commissioner /Registrar of Co-operative Society / any other Competent Authority or any other Document originating from any Central / State Government Department establishing identity and address of such person.

2. Having no office of their own in India:

Type of Applicant

Documents for proof of identity and address

Company/Firms/AOP (Trusts)/AOP/ BOI/Local Authority/Artificial Juridical Person

Copy of registration certificate of the respective country duly attested by Indian Embassy in the country where applicant is located or Copy of certificate of registration with the competent authority in India or Copy of approval issued by the competent authority in India or Copy of the accompanying documents alongwith the approval issued by competent authority in India or Copy of the application (duly acknowledged) made by the applicant before the competent authority in India.

Question: – What is the procedure for applicants who cannot sign?

Answer:- In such cases, Left Hand Thumb Impression (preferably in black ink) of the applicant should be taken on Form 49A/change request form at the place meant for signature. This should be attested by a Magistrate or a Notary Public or a Gazetted Officer, under official seal and stamp.

Question: – Is father’s name compulsory for female applicants (including married/divorced/widow)?

Answer:- Female applicants, irrespective of their marital status, should write only father’s name in the PAN application form. There is no provision to mention husband’s name in the application.

Question: – Is it compulsory for me to mention telephone number/email id on application Form 49A?

Answer:- Either the telephone number or the email should be mandatorily mentioned in the application.

• When the telephone number is mentioned, it is necessary to mention the STD code. In case of mobile number, country code should be mentioned as STD code. When the telephone is provided by WLL service providers, the STD code should be mentioned.
• If email id is mentioned, PAN will be communicated on email id when it is allotted by the Income Tax Department.

Note:

1. Every person who has been allotted permanent account number as on the 1st day of July, 2017 and who in accordance with the provisions of sub-section (2) of section 139AA is required to intimate his Aadhaar number, shall intimate his Aadhaar number to the Principal Director General of Income-tax (Systems) or Director-General of Income-tax (Systems) or the person authorised by the said authorities.

2. The Principal Director General of Income-tax (Systems) or Director-General of Income-tax (Systems) shall specify the formats and standards alongwith procedure, for the verification of documents filed with the application under sub-rule (4) or intimation of Aadhaar number in sub-rule (5), for ensuring secure capture and transmission of data in such format and standards and shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to furnishing of the application forms for allotment of permanent account number and intimation of Aadhaar number

Also Read  Allotment of free of cost instant e-PAN on near to real time basic

(Republished With Amendments)

What If Income Tax Return Not Filed?