Every country has its unique identification cards that help several government departments keep track of their activities. One such Indian identification account is the PAN card, that is, the Permanent Account Number card.
What is a PAN card?
A PAN card or a Permanent Account Number card has a ten-digit unique to the owner code. This ten-digit unique code is a combination of alphabets and numbers that is assigned by the income tax department to individuals.
The income tax department uses this ten-digit alphanumeric number to attain vital data about the PAN card holder related to their taxing eligibility and earning status. A PAN card code helps the Income Tax Department track these two essential details.
The validity of the PAN card is for a lifetime and is compulsory for those who pay taxes. While it helps the Income Tax Department identify such individuals, it also acts as an essential Identity card and is required if one wishes to start a bank account or submit an application to acquire a debit or credit card or acquire a loan, start a Fixed Deposit (FD) or a Recurring Deposit (RD), pay for securities or make or start any other form of the transaction by the individual.
Getting a Permanent Account Number card is compulsory for all those who file for income tax returns. And it may also be acquired by organisations and firms in partnership. Minors, students, Non-Indian Residents (NRIs), or in fact anyone can apply for a PAN card and connect it to their personal bank accounts to unlock its beneficial elements.
What is the process to apply for a PAN card online via TIN-NSDL?
There are different types of PAN cards available, and one can apply for them at any age. Any type of company, business firm, organisation, corporation may apply for a PAN card.
However, the different types of PAN cards are classified into various categories and have varying purposes. These are the different types of PAN cards available:
- Individual’s PAN card- These are the most common ones and may be applied for by every citizen of the country regardless of their age, class, employment, etc.
- NRI’s PAN card- THe PAN card available for Non-Indian Residents is different from those who are residing in the country. Indians who have settled abroad must apply for the NRI Pan card.
- Taxpaying Foreign companies in India- Companies that have branches in India or have established a firm in India are required to apply for this PAN card.
- Indian company’s PAN card- This category of PAN cards is for companies that have an origin in India regardless of whether their business expands abroad or not.
- OCE’s and NRE’s PAN card- The Overseas Citizens of India (OCE) and Non-Resident Entities (NRE) are expected to apply for this category of PAN cards.
What is the value of a PAN card?
Anyone who wishes to file for tax returns must mandatorily hold a PAN card; aside from that, these are the crucial uses and benefits of holding a PAN card:
- Business listing
- Monetary transactions
- Utility links
- Starting bank accounts
What is the eligibility for acquiring a PAN card?
According to the Income Tax Act, section 139A, one must fulfil the following requirements to acquire a Permanent Account Number (PAN) card:
- Individuals who are liable to pay dues to the Income Tax Department are eligible to get a PAN card.
- Earning individuals who have a turnover of 5 lakh rupees or more per annum can get a PAN card.
- Businesses, organisations, corporations, and other associations can get a PAN card.
- Merchants and exporters responsible for paying dues under the Income Tax Act can get a PAN card.
What are the documents required to apply for a PAN card?
According to the rules of the Income Tax Act, 1962, one must possess the following documents to apply for a PAN card:
Applying for a new PAN card:
For Indian nationals(individual citizens):
- Identity proof- One may choose to submit the photocopy of any form of Government Identity document with a photograph of the individual when applying for a fresh PAN card, including Aadhar Card, Driving License, Voter ID, etc.
- Address proof – An individual applying for a fresh PAN card is required to submit a photocopy of a Government document containing the address of the individual. These documents can include Electricity bills, Aadhar Card, Passport, Rental Agreement, Driving License, etc.
- Birthdate proof – The individual submitting the application for a fresh PAN card must submit a Government document containing the birthdate proof of the individual. Such documents may include a birth certificate, Aadhar Card, Driving License, etc.
Non-Indian individuals are required to submit photocopies of Identity proof and Address proof.
If anyone wishes to get their PAN card data modified, they must produce a PAN card photocopy or an authorised allotment letter along with the proof of the changed data.
Getting a fresh PAN card made or reapplying for a change is easy and can be done through the online Government portal.