Who has to obtain PAN?
PAN is to be obtained by following persons:
• Every person if his total income or the total income of any other person in respect of which he is assessable during the previous year exceeds;
• In the case of Basic Exemption Limit
• IndividualRs. 2,50,000.00
• Resident Individuals of the age of 60 years and above but below 80 yearsRs. 3,00,000.00
• Resident Individuals of 80 years above Rs. 5,00,000.00
• Every person who intends to enter into specified financial transactions in which quoting of PAN is mandatory
• Every person if his total income or the total income of any other person in respect of which he is assessable during the previous year exceeds the maximum amount which is not chargeable to tax.
• A charitable trust who is required to furnish return under Section 139(4A)
• Every person who is carrying on any business or profession whose total sale, turnover, or gross receipts are or is likely to exceed five lakh rupees in any previous year
• Every importer/exporter who is required to obtain Import Export code
• Every person who is entitled to receive any sum/income after deduction of tax at source
• Any person who is liable to pay excise duty or a producer or manufacturer of excisable goods or a registered person of a private warehouse in which excisable goods are stored and an authorized agent of such person
• Persons who issue invoices under Rule 57AE requiring registration under Central Excise Rules, 1944
• A person who is liable to pay GST
• Persons registered under the Central Sales Tax Act or the general sales tax law of the relevant state or union territory
• Every person who intends to enter into specified financial transactions in which quoting of PAN is mandatory
• A person not covered in any of the above can voluntarily apply.
What is PAN?
PAN stands for Permanent Account Number. PAN is a ten-digit unique alphanumeric number issued by the Income Tax Department. PAN is issued in the form of a laminated plastic card (commonly known as PAN card). Given below is an illustrative PAN:
ALWPG5809L
What is the utility of PAN?
PAN enables the department to link all transactions of the assessee with the department. These transactions include tax payments, TDS/TCS credits, returns of income, specified transactions, correspondence and so on. It facilitates easy retrieval of information of assessee and matching of various investments, borrowings and other business activities of assessee.
How PAN is formed and how it gets its unique identity?
PAN is a ten-digit unique alphanumeric number issued by the Income Tax Department. The formation of PAN is discussed below :
Out of the first five characters, the first three characters represent the alphabetic series running from AAA to ZZZ. (E.g. ALWPG5809L).
The fourth character of PAN represents the status of the PAN holder (E.g. ALWPG5809L).
“A” stands for Association of Persons (AoP)
“B” stands for Body of Individuals (BOI)
“C” stands for Company
“E” stands for Limited Liability Partnership
“F” stands for Firm
“G” stands for Government Agency
“H” stands for Hindu Undivided Family (HUF)
“J” stands for Artificial Juridical Person
“L” stands for Local Authority
“P” stands for Individual
“T” stands for Trust
Fifth character of PAN represents the first character of the PAN holder’s last name/surname in case of an individual. In case of non-individual PAN holders fifth character represents the first character of PAN holder’s name (E.g. ALWPG5809L)
Next four characters are sequential numbers running from 0001 to 9999 (E.g. ALWPG5809L).
Last character, i.e., the tenth character is an alphabetic check digit (E.g. ALWPG5809L).
The combination of all the above items gives the PAN its unique identity.
How to apply for PAN?
PAN application can be filled up in the following forms –
Form 49A (for Indian Citizens)
Form 49AA (for Foreign Citizens)
PAN application can be made either online through NSDL website http://www.tin-nsdl.com (Click here to apply for PAN online) or UTIITSL website (Click here to apply through UTIITSL) or through any of the NSDL TIN-Facilitation Centres/ PAN Centres (Click here to select the nearest TIN – Facilitation Centers/ PAN centres where PAN application may be submitted).
While submitting PAN application form, applicant will have to indicate whether physical PAN card or E-PAN card is required.
If applicant opts for physical PAN Card, then physical PAN card will be printed & dispatched at communication address.
If the physical PAN Card is not required. In such cases, email ID will be mandatory & e-PAN Card in PDF format will be sent to the PAN applicant at the email ID mentioned in PAN application form. Physical PAN Card will not be dispatched in such cases.
In case of an applicant, being a company which has not been registered under the Companies Act, 2013, the application for allotment of a Permanent Account Number is to be made in Form No. SPICE-INC-32 specified under sub-section (1) of section 7 of the said Act for incorporation of the company. (Application for TAN is also to be made through SPICE-INC-32)
Note: w.e.f. 01-07-2017, every person who is eligible to obtain Aadhaar number shall quote Aadhaar number in the PAN application form.
How to Apply for PAN Correction ?
Any change in the PAN database (i.e. details provided at the time of obtaining PAN) should be intimated to the Income-tax Department by furnishing the details in the form for “Request For New PAN Card Or/ And Changes or Correction in PAN Data”.
PAN correction can be done both online or offline mode.
For offline mode, you are required to submit the “Request For New PAN Card Or/ And Changes or Correction in PAN Data” form at the nearest PAN facilitation centre.
Request For New PAN Card Or/ And Changes or Correction in PAN Data
What is the validity of PAN?
PAN obtained once is valid for life-time of the PAN-holder throughout India. It is not affected by change of address or change of Assessing Officer etc. However, any change in the PAN database (i.e. details provided at the time of obtaining PAN) should be intimated to the Income Tax Department by furnishing the details in the form for “Request For New PAN Card Or/ And Changes or Correction in PAN Data”.
What documents and information have to be submitted along with the PAN application in Form 49A/49AA?
The documents required to be submitted with the PAN application are specified in Rule 114 of the Income-tax Rules. The details of the documents required are also provided in the application form. Individual applicants have to provide document pertaining to proof of identity, proof of address and proof of date of birth. The name of the applicant as mentioned in application form and the name appearing in the documents submitted along with the application should match exactly.
Individual applicants should affix two recent colour photographs with white background (size 3.5 cm x 2.5 cm) in the space provided on the form. The photographs should not be stapled or clipped to the form. The clarity of image on PAN card will depend on the quality and clarity of photograph affixed on the form.
Is it mandatory to provide Aadhaar number in PAN application form?
w.e.f. 1st July 2017, it is mandatory to quote Aadhaar number in the PAN application form for every person who is eligible to obtain Aadhaar Number.
In case the person does not posses the Aadhaar number, the enrolment ID of Aadhaar form can be quoted.
How to link Aadhaar number with PAN if there is mismatch in name of taxpayer?
Taxpayer can link their Aadhaar no. with PAN even if there is mismatch in name of taxpayer as appeared in Aadhaar and PAN. There is no need to login or be registered on E-filing website.
In case of any minor mismatch in Aadhaar card name provided by taxpayer as compared to the actual data in Aadhaar card, One Time Password (Aadhaar OTP) will be sent to the mobile number registered with Aadhaar number. Taxpayers should ensure that the date of birth and gender in PAN and Aadhaar card are exactly the same. However, in cases where Aadhaar name is completely different from name in PAN, Aadhaar will not be linked and taxpayer will be required to change the name in either Aadhaar data or in PAN database
Steps to link Aadhaar with PAN in case of name mismatch:-
Go to E-filing website, https://incometaxindiaefiling.gov.in
Click on “Link Aadhaar” under services column.
Enter “PAN’, Aadhaar Number, Name as per Aadhaar and Captcha Code and click on ‘Link Aadhaar”.
After submitting these details, a success message is displayed confirming the linking of Aadhaar number with PAN. A confirmation email is also sent to the registered email id of the person.
Note:-
Please ensure that the date of birth, Gender and Aadhaar number is per Aadhaar details.
If date of Birth and Gender fully match and Name as per Aadhaar is not exactly matching then user has to additionally provide Aadhaar OTP to proceed with partial Name Matching.
If Your Aadhaar is already linked with PAN with Same name and want to verify the correctness, the alert message will be displayed on to the screen “Your PAN is already linked to the Aadhaar Number”
How to link Aadhaar number with PAN using e-Filing portal?
Taxpayer is required to login on e-Filing portal using his registered username and password. After login, he will get the “link Aadhaar” option under his ‘Profile Settings’.
Aadhaar number will be linked with PAN if name of taxpayer is identical to Aadhaar and PAN.
How to link Aadhaar number with PAN using SMS facility?
Taxpayer who wants to link their Aadhaar number with PAN is required to send SMS to 567678 or 56161 in following format:
UIDPAN<space><12 digit Aadhaar><space><10 digit PAN>
Example of SMS to 567678 or 56161:
UIDPAN 111122223333 AAAPA9999Q
Aadhaar number will be linked with PAN if name of taxpayer is identical to Aadhaar and PAN.
How to link Aadhaar number with PAN?
Aadhaar number can be linked with PAN by any of the two ways:
Using SMS facility
Using facility on e-Filing portal https://incometaxindiaefiling.gov.in
Are there any charges to be paid for obtaining the PAN?
The applicant has to pay a fee of Rs. 93 + GST as applicable, per PAN application. In case, the PAN card is to be dispatched outside India then the fee for processing PAN application is Rs. 864 (Rs. 93 application fees and Rs. 771 dispatch charges)/- will have to be paid by applicant.(plus GST as applicable).
If your PAN card is lost ?
If the PAN card is lost then you can apply for duplicate PAN card by submitting the Form for “Request for New PAN Card or/ and Changes or Correction in PAN Data” and a copy of FIR may be submitted along with the form.
If the PAN card is lost and you don’t remember your PAN, then in such a case, you can know your PAN by using the facility of “Know Your PAN” provided by the Income Tax Department. This facility can be availed of from the website of Income Tax Department – http://www.incometaxindia.gov.in
You can know your PAN online by providing the core details like Name, Father’s Name and Date of Birth. After knowing the PAN you can apply for duplicate PAN card by submitting the “Request For New PAN Card Or/ And Changes Or Correction in PAN Data”.
What are the benefits of obtaining a PAN Card?
A Permanent Account Number has been made compulsory for every transaction with the Income-tax Department. It is also mandatory for numerous other financial transactions such as opening of bank accounts, availing of institutional financial credits, purchase of high-end consumer items, foreign travel, transaction of immovable properties, dealing in securities, etc. A PAN card is a valuable means of photo identification accepted by all Government and other departments.
Can a person hold more than one PAN?
A person cannot hold more than one PAN. If a PAN is allotted to a person, then he cannot apply for obtaining another PAN.
A penalty of Rs. 10,000/- is liable to be imposed under Section 272B of the Income-tax Act, 1961 for having more than one PAN.
If a person has been allotted more than one PAN then he should immediately surrender the additional PAN card(s).
Is it mandatory to file return of income after getting PAN?
Return is to be filed only if you are liable to file return of income under section 139.
It is not mandatory to file return of income after getting PAN.