What is it?
Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department, to any individual or body that applies for it or to whom the department allots the number without an application. PAN enables the department to link all transactions of the person/body with the department. These transactions include tax payments, TDS/TCS credits, returns of income/wealth/gift/FBT, specified transactions, correspondence, and so on. PAN, thus, acts as an identifier for the person/body with the tax department.
PAN was introduced to facilitate the linking of various documents, including payment of taxes, assessment, tax demand, tax arrears(debts) etc. related to an assessee, to facilitate easy retrieval of information and to facilitate the matching of information with respect to investment, raising of loans and other business activities of taxpayers collected through various sources, both internal as well as external, for detecting and combating tax evasion and widening of tax base.
The different categories of applicants are mentioned below-
|Category of Applicants|
|HUF (Hindu Undivided Family)|
|Firm / Limited Liability Partnership|
|Association of Person(s) / Body of Individuals / Trust / Artificial Juridical Person / Local Authority|
An example of a PAN is AFZPK7190K.
The fourth character of PAN i.e. “P” in the above PAN represents the status of the PAN holder. “P” stands for Individual, “F” stands for Firm, “C” stands for Company, “H” stands for HUF, “A” stands for AOP, “T” stands for TRUST etc. Fifth character i.e. “K” in the above PAN represents the first character of the PAN holder’s last name/surname.
A PAN card looks like this-
Why do I need a PAN?
It is imperative that you have a Permanent Account Number since it is mandatory to quote PAN on the return of income, all correspondence with any income tax authority. From 1 January 2005, it has been made mandatory to quote PAN on challans for any payments due to Income Tax Department. Further, it is compulsory to quote PAN in all documents pertaining to the following financial transactions-
(a) sale or purchase of any immovable property valued at five lakh rupees or more;
(b) sale or purchase of a motor vehicle or vehicle, [the sale or purchase of a motor vehicle or vehicle does not include two-wheeled vehicles, inclusive of any detachable sidecar having an extra wheel, attached to the motor vehicle;]
(c) a time deposit, exceeding fifty thousand rupees, with a banking company;
(d) a deposit, exceeding fifty thousand rupees, in any account with Post Office Savings Bank;
(e) a contract of a value exceeding one lakh rupees for sale or purchase of securities;
(f) opening a bank account;
(g) making an application for installation of a telephone connection (including a cellular telephone connection);
(h) payment to hotels and restaurants against their bills for an amount exceeding twenty-five thousand rupees at any one time;
(i) payment in cash for the purchase of bank drafts or pay orders or banker’s cheques for an amount aggregating fifty thousand rupees or more during any one day;
(j) deposit in cash aggregating fifty thousand rupees or more with a bank during any one day;
(k) payment in cash in connection with travel to any foreign country of an amount exceeding twenty-five thousand rupees at any one time.
Who must have a PAN?
- All existing assesses or taxpayers or persons who are required to furnish a return of income, even on behalf of others;
- Any person carrying on any business or profession whose total sales, turnover or gross receipts are or is likely to exceed five lakh rupees in any previous year;
- Any person, who intends to enter into financial transaction where quoting PAN is mandatory;
- The Assessing Officer may allot PAN to any person either on his own or on a specific request from such person.
Please Note: Obtaining or possessing more than one PAN is against the law, for which penalty of Rs10,000/- may be imposed.
Where do I Apply for a PAN?
In order to improve PAN related services, the Income Tax department has authorized UTI Investor Services Ltd (UTIISL) to set up and manage IT PAN Service Centers in all cities or towns where there is an Income Tax office and National Securities Depository Limited (NSDL) to dispense PAN services from Tax Information Network (TIN) Facilitation Centers. For the convenience of PAN applicants in big cities, UTIISL has set up more than one IT PAN Service Center and likewise there are more than one TIN Facilitation Centers.
Online application for PAN is permitted. The application form,Form 49A is readily available on the websites of both NSDL and UTIISL and on the website of the Income Tax Department (ITD). The websites are provided below, respectively-
The form is also available at IT PAN Service centers and TIN Facilitation centers.
What to do when changes/corrections need to be made in the PAN Card-
The websites of UTIISL and NSDL provide options whereby you can make corrections to your existing PAN Card. In such a case, a duplicate card is issued with the same PAN but with updated information.
How to Track the Status of your Application-
You can track the status of your application for new PAN / reprint of PAN card / Changes or Correction in PAN details using the 15-digit unique Acknowledgment Number after three days of application using this facility.
Payment Related Information-
- Fee for processing PAN application:107 (93 + service tax) for PAN card to be dispatched in India. For dispatch outside India, fee is989 (including service tax).
- Payment should be in INR and payment instruments in other currency will not be accepted.
- Payment can be made through Demand Draft, Credit card / Debit card or Net Banking. Demand Draft should be in favor of‘NSDL-PAN’payable at Mumbai.
- Acknowledgment number should be mentioned on the reverse of the Demand Draft.
Documents and Information to be Submitted for Application-
A proof of Identity, proof of address and proof of birth need to be submitted along with the form. Also, a recent, colored photograph (Stamp Size: 3.5 cms x 2.5 cms) of the applicant needs to be affixed on Form 49A and signed across. Lastly, the designation and code of the concerned Assessing Officer of Income Tax department will have to be mentioned in Form 49A. For further details, please click on the following link-
- A photograph is compulsory only in case of ‘Individual’ applicants.
- It takes about 15 days to receive your PAN card. However, PAN can be obtained in around 5 days if the application is made through Internet and processing fee paid through credit card.
- The NSDL or UTIISL, as the case may be will ensure the delivery of the PAN card at the address indicated by you in the application form.
- In case you have not received your PAN in spite of applying for it, please contact AaykarSampark Kendra (0124-2438000 or 95124-2438000 from NCR) or http://www.incometaxindia.gov.in/ or send an email to firstname.lastname@example.org
- Please address your inquiries regarding PAN application to-
For UTIISL –
The Vice President
IT PAN Processing Centre,
UTI Investor Services Ltd
Plot No. 3, Sector – 11
Navi Mumbai-400 614
Tel No. 022-27561690
Fax No. 022-27561706
The Vice President
Income Tax PAN Services Unit, NSDL
4th Floor, Trade World, A Wing
Kamala Mills Compound,
- B. Marg, Lower Parel,
Tel No. 022-2499 4650
Fax No. 022-2495 0664