The PAN (Permanent Account Number) is a crucial 10-digit alphanumeric identifier issued by the Income Tax Department. Essential for various financial transactions, such as opening a bank account, applying for credit cards, or buying property, it is required for filing Income Tax Returns. While you can apply for PAN online, you must send the acknowledgment receipt to NSDL or UTIITSL, authorized agencies for processing PAN applications. PAN is also necessary for avoiding higher TDS deductions; without it, TDS is deducted at a flat rate of 20% as per Rule 114B of the Income Tax Rules.
Legal Requirements of PAN Card Under Income Tax Act
- 1. Sale/Purchase of Immovable Property
- For transactions involving immovable property valued at more than Rs. 10 lakhs or as determined by the stamp valuation authority under Section 50C, PAN is mandatory.
- 2. Purchase of Motor Vehicle
- PAN is required for all transactions involving the purchase of motor vehicles, excluding two-wheelers.
- 3. Time Deposits
- PAN is needed for time deposits with cooperative banks, post offices, or Nidhi NBFC companies. Additionally, PAN is required for aggregate deposits exceeding Rs. 5 lakhs within a year.
- 4. Sale or Purchase of Securities
- For securities transactions, PAN must be quoted for contracts exceeding Rs. 1 lakh in value.
- 5. Opening a Bank Account
- PAN is required for opening a bank account, excluding Basic Savings Bank Deposit Accounts. Co-operative banks must also comply with this requirement.
- 6. Hotel/Restaurant Payments
- For cash payments exceeding Rs. 50,000 at hotels or restaurants, PAN is required.
- 7. Cash Deposits in Banks
- PAN must be provided for cash deposits exceeding Rs. 50,000 in a single day.
- 8. Foreign Travel Payments
- For cash payments related to foreign travel or purchasing foreign currency exceeding Rs. 50,000, PAN is necessary.
- 9. Credit Card Applications
- PAN is required for applications for credit cards with any banking or financial institution, including co-operative banks.
- 10. Mutual Fund Units
- Payment exceeding Rs. 50,000 for acquiring mutual fund units necessitates quoting PAN.
- 11. RBI Bonds
- For payments exceeding Rs. 50,000 towards RBI bonds, PAN is required.
- 12. Life Insurance Premium
- Payments exceeding Rs. 50,000 in a year for life insurance premiums must be accompanied by PAN.
- 13. Purchases/Sales of Goods or Services
- For any transaction involving the purchase or sale of goods or services exceeding Rs. 2 lakhs, PAN is mandatory.
- 14. Cash Cards/Prepaid Instruments
- For cash payments aggregating to more than Rs. 50,000 in a year towards cash cards or prepaid instruments, PAN is required.
- 15. Bank Drafts/Pay Orders/Banker’s Cheques
- Payments in cash exceeding Rs. 50,000 in a day for bank drafts, pay orders, or banker’s cheques must include PAN.
- 16. Opening a Demat Account
- PAN is mandatory for all transactions related to opening a demat account.
PAN Card Online Application Filing Process
- 1. Choose the Service Authority
- In India, you can apply for a PAN card through two service providers: NSDL or UTIITSL. Choose the one that suits you best.
- 2. Visit the Website
- For instance, if you choose NSDL, go to https://tin-nsdl.com.
- 3. Click on “Apply for PAN Online”
- Locate and click on the “Apply for PAN Online” option on the service provider’s website.
- 4. Choose Filing Type
- Select your preferred filing method: Digital Signature-based or Other (Self-Signed Application/Esign Aadhar-based).
- 5. Prepare the Application Form Online
- Decide whether you need a new PAN or a correction. Choose the category of applicant (Individual/Company/Firm, etc.) and start filling in the required details.
- 6. Select Income Tax Ward/Circle
- Fill in your details carefully and select the appropriate Income Tax Ward/Circle.
- 7. Pay Fees
- Complete the application form and proceed to pay the fee online if using Digital Signature/Aadhar Esign. For physical submissions, you may need to pay by DD/Cheque.
- 8. Submit the Application
- After payment, an acknowledgment copy will be generated. If you opted for a self-signed application, send this acknowledgment copy along with supporting documents and fee (if applicable) to the NSDL office in Pune.
How to Check PAN Card Application Status Online
- Visit the Website: Go to the PAN application status page on the official NSDL or UTIITSL website.
- Enter Details: Input your PAN application number and other required details such as date of birth.
- Submit and View Status: Click on the “Submit” button to view the current status of your PAN card application.
Documents Required for PAN Card Application (Indian Resident)
- ID Proof: Aadhar Card, Driving License, Voter ID, Passport, Ration Card with photo, ID Card issued by Government Employee, or Bank Certificate.
- Address Proof: Electricity/Telephone/Water/Gas Bill (recent), Aadhar Card, Passport, Driving License, Voter ID, Passport of Spouse, Employer Certificate (Original), Domicile Certificate, or Certificate of Address signed by MP/MLA/Municipal Councilor.
- Date of Birth Proof: Birth Certificate, Aadhar Card, Voter ID, Driving License, Passport, Pension Payment Order, Marriage Certificate, Domic
Documents Required for PAN Card Application (Foreign Citizen or NRI)
ID Proof Documents:
- National ID, Citizen ID, or Taxpayer ID duly attested by Apostille (copy)
- National ID, Citizen ID, or Taxpayer ID attested by authorized officials of overseas branches of scheduled banks registered in India (copy)
- National ID, Citizen ID, or Taxpayer ID attested by the Consulate (copy)
- National ID, Citizen ID, or Taxpayer ID attested by the Indian Embassy (copy)
- National ID, Citizen ID, or Taxpayer ID attested by the High Commission (copy)
- Overseas Citizenship of India Card issued by the Government of India (copy)
- Passport (copy)
- Person of Indian Origin Card issued by the Government of India (copy)
Address Proof Documents:
- Bank Statement from the country of residence (copy)
- Certificate of Residence in India or Residential Permit issued by State Police Authority (copy)
- NRE Bank Account Statement in India (copy)
- Overseas Citizenship of India Card issued by the Government of India (copy)
- Passport (copy)
- Person of Indian Origin Card issued by the Government of India (copy)
- Registration Certificate issued by Foreigners Registration Offices showing Indian address (copy)
- Visa with appointment letter or contract from an Indian company and letter with certificate of Indian address issued by employer (copy)
Documents Required for PAN Card Application (Companies / LLP / Firm)
ID and Address Proof:
- Certificate of Registration issued in the country where the applicant is located, duly attested by Apostille (copy)
- Certificate of Registration issued in the country where the applicant is located, duly attested by the Indian Embassy (copy)
- Certificate of Registration issued in the country where the applicant is located, duly attested by the High Commission (copy)
- Certificate of Registration issued in the country where the applicant is located, duly attested by the Consulate (copy)
- Certificate of Registration issued in the country where the applicant is located, duly attested by overseas branches of scheduled banks registered in India (copy)
- Certificate of Registration issued in India or approval granted to set up an office in India by Indian Authorities (copy, for address proof)
PAN Card Application Service Package Inclusions
- Consultation: Expert advice on document requirements and eligibility criteria.
- Application Preparation: Assistance in accurately completing the PAN application form.
- Application Filing: Help with the submission of the application, including online filing and fee payment.
- Delivery of PAN Card: Tracking the status of the application and ensuring timely delivery of the PAN card.
- Status Updates: Regular updates on the progress of the application and resolution of any issues.