PAN Card Decoded

The PAN card (Permanent Account Number) has more or less become an essential document to have. It is required for identification purposes, not only for those who pay taxes but also for those who are neither employed nor pay taxes. In case you don’t already have one, here’s a quick guide to help you understand how to apply for one.

Additional Reading: Aadhaar To Be Mandatory For IT Returns/ PAN Card

A simplified process has made applying for a PAN card extremely easy. In addition to applying for a new one, you can also make changes to an existing one and apply for a duplicate PAN card by simply logging onto the official NSDL site.

How To Apply For PAN Card

You have the option to apply for a PAN Card both online and offline. Here’s how to go about each of them:

Online

With the evolution of the internet, gathering information about anything and everything is just a click away. Similarly, you can apply for a PAN card online in a matter of few clicks. You can visit www.onlineservices.nsdl.com to apply for a PAN card online. After that, you can follow the steps that are mentioned below to apply for a PAN card online and submit it:

• Click on the top tab ‘Apply New PAN Card’ on the top left-hand side of the page
• Once you click on it, an application form will appear on the screen
• The following details need to be furnished on the form:
  • Application Type
  • Category (The applicant needs to choose between individual/association of persons/body of individuals/company/trust/limited liability partnership/firm/government/Hindu undivided family/artificial juridical person/local authority)
  • Title
  • Last Name, First Name, and Middle Name
  • Date of Birth
  • Email ID
  • Mobile Number

Once these details have been filled in, you can hit the submit button. Upon doing so, you will receive a 15-digit acknowledgment number. Save and print the acknowledgment page for future use.

Offline

To apply for a PAN card offline, here’s what you need to do:

• Download 49A form from the official NSDL site.
• The next step is to pay the fee and create a demand draft in favour of NDSL-PAN and send it to Income Tax PAN Services Unit, NDSL e-Governance Infrastructure Limited, 5th Floor, Mantri Sterling, Plot Number 341, Survey Number 997/8, Model Colony, Near Deep Bungalow Chowk, Pune-411016.
• Fill the form, attach a photograph along with an ID and address proof, and send it to the above-mentioned address.
• Mention-APPLICATION FOR PAN and the acknowledgement number on the envelope.

What Are The Documents Required?

You need documents that can act as address and identity proof. Apart from these basic documents, proof of existing PAN needs to be furnished in case you want to apply for modification or reprint of PAN.

Also, two passport-sized photographs need to be affixed to the application form for PAN. In case of online PAN application, a copy of the acknowledgement letter also needs to be attached with the documents being submitted to the tax department.

How To Track The Status Of Your PAN Card Application

To track the latest updates about your PAN application, you can use facilities provided by both NSDL as well as UTIITSL. The reference number furnished at the end of the application submission process can be used to track the status of your application.

Once you apply for a new PAN or change in PAN details, the system takes around 15-30 days to process your request and send the PAN card to your registered address. However, during the waiting period, you can track the status of your request by visiting any of the NSDL or UTIITSL websites and providing your acknowledgement number for the PAN application. Any kind of a status enquiry related to PAN application is free of cost.

While PAN applications made to the NSDL can be tracked via the acknowledgement number, those made via UTIITSL can be tracked through the coupon number that is furnished by the department.

Status tracking keeps users up to date with the latest information about their application. Status can be tracked only after a certain amount of time has elapsed since the submission of the application form for PAN change or issue.

What Are The Charges Applicable?

Fees levied on PAN application is nominal. Fee varies with the type of application filed with the Income Tax Department. So the fee is different for new PAN application and for changes or reprint of PAN. Similarly, the fee is more for NRI applicants and foreign applicants than Indian citizens. One reason for this is the fact that a fresh PAN card needs to be dispatched by the department each time a request is made for change or reprint or issuing. Postal handling charges are also, therefore, charged to the applicant.

What Are The Uses Of PAN Card?

IT Returns Filing: All individuals and entities who are eligible for Income tax are expected to file their IT returns. A PAN card is necessary for the filing of IT returns, and is the primary reason individual, as well as other entities, apply for one.

Opening a bank account: A PAN card is required in order to open a new bank account, whether it is a savings or a current account. All banks, whether public, private or co-operative, require the submission of a PAN card in order to open an account with them.

Buying or selling a motor vehicle: If you wish to buy or sell a motor vehicle worth more than Rs. 5, 00, 000, you have to provide your PAN Card details when conducting the transaction.

Applying for a Credit or Debit Card: When applying for either a Debit Card or a Credit Card at any bank or financial institution, furnishing your PAN card details is mandated by regulations. The bank will not issue the card if this criterion is not met.

Purchase of jewellery: If you are looking at buying any sort of jewellery that is valued at over Rs. 5, 00, 000, you will have to provide your PAN card details at the time of purchase.

Making investments: Investing in securities is seen as a good way to build your wealth. If you are considering investing in securities, you would have to furnish your PAN details for any transactions amounting to above Rs. 50, 000. This extends to equities, mutual funds, bonds as well as debentures.

Proof of Identity: A PAN card is accepted as valid proof of identity anywhere in the country, and is also considered as proof of age. It can also be used as proof of identity when making an application for a passport, voter ID card, driving licence, electricity connection etc.

Foreign Exchange: If you are travelling abroad and wish to convert your Indian currency into foreign currency, you are required to provide details of your PAN at the money exchange bureau/bank/institution where you are converting the money.

Property: Buying, selling or renting property in India now requires PAN card proof. In the case of buying of property, the PAN details of the buyer, as well as the seller, have to be listed on the sales deed and any other such documentation for the sale to be complete.

Loans: If you require a loan, all loan providers, both banks as well as other lending institutions, require you to submit details of your PAN at the time of loan application. All loans, from education loans to personal loans require PAN details for the loan to be approved.

Fixed Deposits: If you plan on investing your money in a Fixed Deposit (FD) amounting to above Rs. 50, 000 in a bank, you will have to provide your PAN details. This is done as the bank will deduct TDS (Tax Deductible at Source) on the FD interest amount.

Cash Deposits: If you are making a cash deposit that amounts to over Rs. 50, 000 at a time, you will have to submit your PAN details as well. This is in keeping with the RBI mandate, which directs banks to report any large cash deposits to the RBI, as a way to prevent money laundering.

Telephone Connections: If you wish to get a new telephone or mobile phone connection, it is mandatory to submit your PAN details, as private cellular operators will not provide you a connection without it.

Insurance Payments: As per the Income Tax Department directives, PAN card details have to be furnished when making an insurance payment exceeding Rs. 50, 000 a year.

How To Get A Duplicate PAN

In case you lose your existing PAN card or wish to make any changes (address change, surname change, date of birth change) the process is similar to that of applying for a new card. You will need to select the option, ‘Changes or Correction in PAN details’ and fill the online application form. You then follow the same process of sending the form to the NSDL office in Pune as you would if you were applying for a new PAN card.

How To Track A PAN Card?

Once you have sent the PAN card to the Pune office, you can track your application by sending an SMS to 57575. You need to type NSDLPAN [space] your 15-digit Acknowledgement Number and you will get the status of your PAN card application.

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