Permanent Account Number (PAN) : Full Form, Format, Eligibility & Types

What is Permanent Account Number (PAN)?

PAN is a government-issued identity card with a unique 10-digit alphanumeric code that serves many purposes. PAN is the short form of “Permanent Account Number”. The Department of Income Tax issues the Permanent Account Number (PAN) card, which has ten alphabetic and numeric digits. In some cases, a distinct PAN number is assigned, together with the organisation name, DOB, and a photo that can be used as identification proof and for a number of other regulatory norms. PAN cards are real documents.

Format of PAN Card

Information about the person, including name and date of birth (DOB), is included in the PAN card and is associated with KYC rules. The following details are included on the PAN card

1. Name: Name of Person
2. Father’s Name: Father’s name of the applicant
3. DOB: The applicant’s date of birth.
4. PAN Card Number: Ten characters, including letters and digits, make up a PAN. Usually, the format is in the form of “ABCDE1234F,” with the last character being a letter and the first five characters being letters, followed by four digits.
5. Signature: The cardholder’s signature.
6. Date of Issue: The day the PAN card was issued.
7. QR Code: Modern PAN cards may contain a QR code for rapid verification.
8. Security: Holograms and watermarks are two security elements that PAN cards may contain in order to prevent forgery.
9. Embossed Seal: For enhanced credibility, a seal from the Income Tax Department may be included.

Eligibility for PAN Card

The requirements for each category’s eligibility are listed below:

For Individuals:

1. Indian Residents: Indian citizens, non-resident Indians (NRIs), and foreign nationals who reside in India are all eligible and may apply for a PAN card.
2. Minors: Even minors (those under the age of 18) are eligible to apply for a PAN card. They just have to provide the documents of the names, addresses, and photos of their parents or legal guardians.

For Organisations:

1. Companies: PAN cards may be requested by any Indian company, public or private. PAN cards are required for many financial operations and taxation for Indian-registered companies.
2. Partnerships: Limited liability partnerships (LLPs), partnership firms, and other business entities created in accordance with Indian law are all eligible for a PAN card.
3. Societies: Societies, charitable organisations, and trusts are all qualified applicants for PAN cards. PAN cards are frequently needed by these businesses for financial and tax-related transactions.
4. Hindu Undivided Families (HUFs): A PAN card is available to HUFs, a particular sort of family business structure.

How to Apply for PAN Card?

PAN Card can be applied both, online and offline. PAN card can be applied online on two government-approved websites- NSDL or UTIITSL.

How to use the NSDL website to apply for a PAN card?

Step 1: Go to the NSDL website and choose the “New PAN Indian Citizen (Form 49A)” PAN card application.

Step 2: Completely fill out the form. Before entering the information on the PAN card application form, carefully read the instructions.

Step 3: Pay the necessary fees.

Step 4: Deliver the necessary paperwork to the NSDL office by courier or postal service. The processing of the PAN application by NSDL would begin only after receiving the required paperwork. The PAN card will be issued in 15 days after the NSDL has verified the application and supporting papers.

How to use the UTIITSL Website to apply for PAN Card?

Step 1: Fill out the PAN card application found on the UTIITSL website.

Step 2: Pay the application fee. An acknowledgement will be shown following a successful transaction.

Step 3: Within 15 days of submitting Form 49A online, send the paperwork to the UTIITSL office by courier. Within 15 days, the UTIITSL will process the application and supporting documents and issue the PAN card.

How to apply for PAN Card offline?

Step 1: Download ‘Form 49A’ from the NSDL e-Gov website.

Step 2: Complete the application’s details.

Step 3: Add your photo and signature to the application.

Step 4: Deliver the application and necessary paperwork to the nearby PAN centre.

Step 5: Pay the application fee for a PAN card.

Step 6: You will be given an acknowledgement number with which to follow the progress of your PAN card application. Within 15 days of the documents being verified, a PAN card will be issued.

Types of PAN Card

There are two categories under which PAN Card is issued: Individuals and Non-Individuals.

For Individual:

1. Individual PAN: Individual consumers, including Indian citizens and foreign people residing in India, are granted PAN cards of this sort.
2. Minor PAN: Minors (those under the age of 18) may also be given a PAN card for use in a variety of financial transactions, investments, and educational needs. The card includes information regarding a guardian.
3. PAN for NRI: Non-resident Indians (NRIs) can apply for a PAN card that is specifically made for NRIs if they have financial transactions or income sources from India.

For Non-Individual:

1. Company PAN: Public and private businesses must have a company PAN card. For taxation, financial transactions, and legal compliance, it is crucial.
2. Partnerships: Limited liability partnerships (LLPs) and other partnership firms are eligible to apply for a PAN card under their business name. Transactions involving business are conducted using this PAN.
3. Hindu Undivided Family (HUF) PAN: HUFs are able to apply for a PAN card in order to manage their finances and submit tax returns on their own behalf.
4. Trust PAN: To manage their finances and meet their tax requirements, trusts, charitable organisations and other like entities can apply for a PAN card.
5. PAN for an Association of Persons (AOP) or Body of Individuals (BOI): AOPs and BOIs can obtain a PAN card to control their group’s financial operations.
6. Government PAN: For formal financial and taxes purposes, government institutions and organisations may obtain a PAN card.
7. PAN for Local Authorities: PAN cards are available to local authorities, including municipal corporations, panchayats, and similar groups.

Documents Required For PAN Card

For Individuals:

1. Proof of Identity (POI):

Aadhaar card issued by the Unique Identification Authority of India (UIDAI), passport, Voter ID card, driving license, ration card with a photograph, arm’s license, photo identity card issued by the Central Government, State Government, or a public sector undertaking, pensioner card with a photograph.

2. Proof of Address (POA):

Aadhaar card issued by the UIDAI, passport, Voter ID card, driving license, bank account statement, electricity bill, landline telephone or broadband connection bill, rent agreement, property tax assessment order, and certificate of address signed by a gazetted officer.

3. Proof of Date of Birth (DOB):

Birth certificate issued by the municipal authority or any other designated office, passport, matriculation certificate, PAN card of the applicant’s parents.

4. Photographs:

Recent passport-size photographs of the applicant.

For Non-Individuals:

1. Proof of Identity and Address of the Entity:

Certificate of incorporation for companies, partnership deed for partnership firms, trust deed for trusts, registration certificate issued by the relevant government authority for other entities, and proof of address of the entity, such as utility bills or property documents.

2. Proof of Identity and Address of Authorised Signatories:

Proof of identity and address documents for the authorised signatories of the entity, similar to those required for individuals.

3. Photographs:

Passport-size photographs of the authorised signatories.

Why do we need a PAN Number?

PAN contributes to the Indian financial and taxes system in a number of significant ways. The primary reasons for needing a PAN number are as follows:

1. Filing Income Tax Returns: Every person or company in India that has taxable revenue is required to have a PAN. It aids in the government’s proper tracking and estimation of tax liabilities.

2. Tax Purposes: PAN is used for tax purposes to connect different financial activities and revenue to the taxpayer. For the purpose of computing and collecting taxes, this connection is crucial. It enables the government to track down those who evade taxes and make sure tax laws are followed.

3. Loan Applications: When people or organisations apply for loans, credit cards, or other types of credit, banks and financial institutions demand PAN information.

4. Property Transactions: For transactions involving real estate, such as the purchase or sale of a home, a PAN is required.

5. Identification: For many official and non-official reasons, a PAN card is frequently accepted as evidence of identity and address.

6. Government Services: PAN is necessary in order to use a number of government services, such as applying for passports, obtaining subsidies, and bidding on government contracts.

7. Preventing Tax Evasion: Combating tax evasion and increasing transparency in financial transactions are two important roles that PAN plays. The government can spot errors and take the proper action by monitoring financial activity using PAN.