What is PAN Card?
The Permanent Account Number (PAN) is a unique ten-digit alphanumeric number which is printed on a PAN card, assigned to Indians, mostly to those who pay tax, It is issued by the Income Tax Department under the Income Tax Act, 1961
PAN Card is valid for lifetime because it is unaffected by any change in address.
For offline support, applicants can approach any of the authorised TIN-Facilitation (TIN-FCs) and PAN centres.
Who should apply for PAN?
It serves as a proof of identity for all taxpayers โ individuals and entities โ in many situations, especially when performing any kind of financial transaction in the country.
The Permanent Account Number is a unique and permanent set of figures that remains unchanged throughout the lifespan of the PAN holder. It is mandatory to have a PAN card for executing various tasks such must for non-resident Indians (NRIs) living outside India and even foreign passport holders.
Also, minors can apply for a PAN card through a representative assesse.
A PAN card is necessary for various activities. Here are some of them:
- To file income tax returns
- It serves as a proof of identity
- To open a new bank account and depository account
- Toย apply for credit cardย and bank loans
- Registration of Business
- Financial Transactions
- For sale or purchase of a car or any other vehicle (apart from two wheeler)
- Payment of an amount Rs. 50000 and more towards investment purpose
- For jewellery purchase after the prescribed limit
- Mutual Fund โ PAN is beneficial to complete e-KYC for mutual fund investments.
Documents for PAN
PAN requires two types of documents.
Proof of address (POA) and Proof of Identity (POI).
Any two of the following documents should meet the criteria:
Individual Applicant | POI/ POA- Aadhar Card, Passport, Voter ID, Driving Licence |
Hindu Undivided Family | An affidavit of the HUF issued by the head of HUF along with POI/POA details |
Company registered in India | Certificate of Registration issued by Registrar of Companies |
Firms/ Partnership (LLP) | Certificate of Registration issued by the Registrar of Firms/ Limited Liability Partnerships and Partnership Deed. |
Trust | Copy of Trust Deed or a copy of the Certificate of Registration Number issued by a Charity Commissioner. |
Society | Certificate of Registration Number from Registrar of Co-operative Society or Charity Commissioner |
Foreigners | Passport PIO/ OCI card issued by the Indian Government Bank statement of the residential country Copy of NRE bank statement in India |
Doโs and Donโts for Filling up PAN update Form
- The form must be filled using only capital letters and in English language only.
- Fill in all the fields for updating
- Mobile number is compulsory for any updates to take place
- Make sure the form is filled only with current and relevant details
- Names must not have salutations such as Mr / Mrs / Ms / Dr
- Make sure that the full and complete address is filled for the PAN to be dispatched to the address
- Enter name clearly with signature or thumbprints when self-attesting supporting documents
- Attach relevant documents that support the required update only
- Incorrect information and lack of support documents will cause the application to be rejected