Complete guide on PAN Card in India
Permanent Account Number (PAN) is mandatory for income tax purpose and TDS. There are several benefits available with PAN number. Recently Govt of India has mandated several transactions where PAN number needs to be quoted. What is PAN Card? How to apply for PAN Card in India? What are the transactions where PAN Number should be quoted? Can Minors apply for the PAN Card? In this article, we would provide complete guide on PAN Card.
What is PAN Card in India?
A PAN card is, basically, a permanent account number (PAN) of an income tax payee, given by income tax department of India. It is a ten digit code that includes alphabets and numbers and is unique for each and every individual. It is issued by the department of income tax under the guidance of central board of direct taxes (CBDT) in India. Like the driving license and Aadhar Card, it is also an important identification proof, accepted at all the places.
How to apply for PAN Card in India?
Here are the step-by-step process on applying for PAN Card in India.
- To apply for the PAN online or offline, an applicant needs to obtain the 49A form. He can download it from the website of income tax department or take it from the TIN-NSDL centres, which are situated in every city in the country. If you wish to apply PAN Card online, click on this Form 49A link
- Fill in the complete form with all the requisite information and submit the form. If some error persists, rectify it and resubmit the form.
- A screen of confirmation of all the data filled will appear.
- The applicant may either confirm or edit the same.
- On confirmation, an acknowledgement will be displayed which contains a unique 15 digit number.
- The applicant should save or print this acknowledgement.
- “Individual” applicants are required to affix two recent color photographs with white background of the size of 3.5cmx2.5cm in the space provided in the acknowledgement. The point to be noticed is the photographs should not be stapled or clipped. If there is any mark on the photograph as if hinders the clear visibility of the face of the applicant, the application will be rejected.
- In case of individual applicants, signature/ left thumb impression should only be within the box provided in the acknowledgement. For non individual applicants, the acknowledgement needs to be signed by the authorized signatories like Karta in case of HUF, Director in case of company, partners in case of partnership firm, etc.
- The acknowledgement along with proof of identity(Aadhar Card, Driving licence, Passport, Ration card etc.), proof of address (Aadhar Card, Driving licence, Passport, Voter card, property tax assessment etc.) and proof of date of birth (Aadhar Card, Driving licence, Passport, voter card, matriculation certificate etc.) is to be sent at the following address: “Income tax PAN Service Unit, NSDL e-Governance Infrastructure Limited, 5thfloor, Mantri Sterling, Plot no. 341, Survey no. 997/8, Model Colony, Near Deep Bungalow Chowk, Pune-411016”.
- The envelope should be superscribed with“APPLICATION FOR PAN -N- acknowledgement number”.
- Your acknowledgement, demand draft (if any), and proofs should reach NSDL within 15 days from the date of online application.
- The fee for application and processing of PAN application is Rs. 107 and the payment can be made either by demand draft, credit / debit card, net banking.
How to make changes or corrections in PAN card in India?
- The applicant has to fill the PAN Change Request Form. He can obtain it from Income tax website or he can submit it online or offline. Here is the PAN Card change request form online.
- Fill all mandatory fields of the form and select the corresponding box on the left margin of appropriate field where change is required. Attach the relevant proof which is to be changed.
- The rest of the procedure would be the same.
- The charges would be same as for a new PAN card.
Which are the financial transactions where the attachment of PAN is mandatory?
The government of India has made it compulsory to attach the PAN in a number of transactions. It enables the department to link all the information of the assessee and trace them.
- On any sale or purchase of the value exceeding Rs. 1 lakh. This limit has been extended to Rs. 2,00,000 from 1 January 2016.
- Sale or purchase of any motor vehicle.
- Depositing any amount exceeding Rs. 50,000 in the bank account or Post Office Savings Account.
- To apply for a telephone connection, including cellular phones.
- On purchase of bank drafts or pay orders or banker’s cheque for an amount aggregating to Rs. 50,000.
- A contract of a value exceeding Rs. 1,00,000 for sale or purchase of securities.
- For opening of a bank account. In case of minor, PAN of mother or father or guardian shall be mentioned.
- Any payment made to hotels and restaurants for their bills exceeding Rs. 25,000 at one time. This limit has been increased to Rs. 50,000 from 1 January 2016.
- If you are paying cash regarding travelling to any foreign country, an amount exceeding Rs. 25,000 in a single transaction. This amount has been increased to Rs. 50,000 with effect from 1 January 2016.
- To apply for the issue of debit or credit card.
- For the purchase of mutual funds or shares of the amount exceeding Rs. 50,000. This limit is exceeded to Rs. 1,00,000 from1 january 2016.
- For acquiring debentures or bonds issued by a company or institution for an amount of Rs. 50,000 or more.
- Payment towards life insurance premium of Rs. 50,000 or more in a year.
What happens if PAN card is not available?
If the PAN Card is not available and we have taxable income, wherever TDS is applicable, it will be deducted at the rate of 20%. And otherwise, it would be deducted as per the prescribed rates.
Can we apply for PAN Card in the name of minors?
Yes, we can apply PAN Card for minors if we wish to. The income tax department of India does provide a PAN card for minors. If you want to make investments in the name of your minor child or you want to make him a nominee of your investments, PAN card would be very handful. The PAN card would be issued by following the same procedure. It would be send to the registered address within the specified period. The PAN card will however have no photograph for the minors.
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Complete guide on PAN Card – How to apply or make changes