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PAN Card: Understanding the Use of PAN

PAN Card: Understanding the Use of PAN

Important Keyword: Form 49A, PAN, PAN Application, TIN NSDL, UTIITSL.

What is PAN?

The Income Tax Department (ITD) issues the Permanent Account Number (PAN), an alphanumeric ID presented in the form of a card, to individuals upon application or as per the department’s discretion. PAN serves as a crucial identifier for individuals in their dealings with the tax department, facilitating the linkage of various transactions and activities with the department’s records.

Transactions encompassing tax payments, credits for Tax Deducted at Source (TDS) or Tax Collected at Source (TCS), filing of income/wealth/gift/FBT returns, specified financial transactions, and correspondence are all associated with PAN. In essence, PAN serves as a comprehensive identifier, streamlining the management of individual tax-related activities and ensuring effective communication between taxpayers and the Tax Department.

Use of PAN card

The PAN Card serves as a crucial document for various financial and non-financial transactions, ensuring transparency and accountability in dealings. Here are some instances where the PAN Card is mandatory or highly beneficial:

  1. Sale or Purchase of Assets: Required for transactions involving the sale or purchase of immovable property valued at INR 5,00,000 or more and motor vehicles with more than two wheels.
  2. Bank Account Opening: Mandatory since January 1st, 2016, for opening a bank account, ensuring financial transparency.
  3. Phone Connection: Necessary for obtaining a phone connection, ensuring accountability in telecom transactions.
  4. Gas Connection: Required for procuring a new gas connection, aiding in monitoring energy-related transactions.
  5. Hotel and Restaurant Payments: Mandatory for one-time payments exceeding INR 25,000 in hotels and restaurants, preventing fraudulent transactions.
  6. Foreign Travel: Essential for cash payments exceeding INR 25,000 during foreign travel, ensuring financial transparency.
  7. Tax Deduction and Evasion Prevention: Facilitates the deduction of fraudulent transactions, reduces tax evasion, and ensures transparency in buyer-seller transactions.
  8. Financial Transactions: Mandatory for various financial transactions such as availing institutional financial credits, purchasing high-end consumer items, dealing in securities, etc.
  9. Photo Identification: Accepted as a valuable means of photo identification by both Government and Non-Government institutions across the country.

Understanding PAN Number Format:

A PAN Number typically follows the format: ABCPS1234A

  • The first five characters consist of letters.
  • The next four characters are numerals.
  • The last character is a letter.

Of the first five characters:

  • The first three represent the alphabetic series from AAA to ZZZ (e.g., ALWPG5809L).
PAN Card - First Three Characters of the PAN Number
  • The fourth character represents the status of the PAN holder. (eg. ALWPG5809L). The PAN cardholders have a unique definition:
    • A — Association of Persons (AOP)
    • B — Body of Individuals (BOI)
    • C — Company
    • F — Firm
    • G — Government
    • H — HUF (Hindu Undivided Family)
    • L — Local Authority J — Artificial Judicial Person
    • P — Individual
    • T — AOP (Trust)
PAN Card - Fourth Character of the PAN Number
  • The fifth character represents the first character of the PAN holder’s last name/surname in the case of an individual. In the case of non-individual PAN holders, the fifth character represents the first character of the PAN holder’s name (E.g. ALWPG5809L).
PAN Card - Fifth Character of the PAN Number
  • The next four characters are sequential numbers running from 0001 to 9999 (E.g. ALWPG5809L).
PAN Card - Sixth to Ninth Character of the PAN Number
  • The last character, i.e., the tenth character is an alphabetic check digit (E.g. ALWPG5809L).
Last Character of the Permanent Account Number

The combination of all the above items gives the PAN a unique identity.

PAN card Application Methods

To apply for a PAN card, individuals have the option to do so either online or offline:

Online Application:

TIN-NSDL:
  1. Visit the TIN-NSDL website.
  2. Fill out the online application form.
  3. Submit the form along with the required documents and fees.
  4. Upon successful submission, you will receive an acknowledgment number.
  5. Use this number to track the status of your application.
UTIITSL:
  1. Visit the UTIITSL portal.
  2. Complete the online application process.
  3. Submit the form along with the necessary documents and fees.
  4. Upon submission, you will receive an acknowledgment number.
  5. Utilize this number to monitor your application status.
Offline Application:
  1. Download FORM 49A from the official website.
  2. Review the instructions before filling out the form.
  3. Gather the necessary supporting documents for PAN.
  4. Complete the form accurately and attach the required documents.
  5. Submit the filled form, along with the supporting documents and application fees, at the PAN application center.
  6. Upon acceptance, you will receive an acknowledgment containing a unique number.
  7. Use this number to keep track of your application’s progress.

Read More: PAN Aadhaar Link: Step-by-step Process

Web Stories: PAN Aadhaar Link: Step-by-step Process

Official Income Tax Return filing website: https://incometaxindia.gov.in/

e-PAN Card: The Complete Guide

e-PAN Card: The Complete Guide

Important Keyword: e-PAN, PAN, PAN Status, TIN NSDL, UTIITSL.

e-PAN Card: The Complete Guide

The Income Tax Department (ITD) has introduced an Aadhaar-based e-PAN card allotment service. This service allows individuals to obtain a PAN card quickly and conveniently using their Aadhaar details. The PAN, which is unique to each individual or entity, is a vital identification number and is recognized and valid throughout India.

What is e PAN Card?

The Income Tax Department (ITD) issues a digitally signed e-PAN card in an electronic format using Aadhaar e-KYC. This service simplifies the process of applying for a PAN card, making it more accessible and efficient.

The e-PAN card is interchangeable with the physical PAN card and carries the same number. It is essential for filing Income Tax Returns (ITR) and conducting all related transactions with the ITD. Anyone with a valid Aadhaar number, issued by the Unique Identification Authority of India (UIDAI), can apply for an e-PAN.

Additionally, the Central Board of Direct Taxes (CBDT) has affirmed that the PAN card is acceptable everywhere as valid government proof.

Eligibility for e-PAN card

To apply for an Aadhaar-based e-PAN card, the following criteria must be met:

  1. Indian Residency: The applicant must be an Indian resident.
  2. Individual Applicant: The application must be made by an individual, not a company or a member of a Hindu Undivided Family (HUF).
  3. Aadhaar Card: The individual must possess a valid Aadhaar card.
  4. Linked Mobile Number: The applicant must have a valid mobile number linked to their Aadhaar card.
  5. Verified Aadhaar Details: The details on the applicant’s Aadhaar card must be verified.
  6. No Existing PAN: The applicant should not already have a PAN card.

e-PAN Card Application Process

Applications for an Aadhaar-based e-PAN card can be made through two portals:

  1. NSDL Website
  2. UTIITSL Portal

The service is available for free to:

  • New applicants
  • Individuals who have applied for any changes/corrections in their PAN details within a month of it being issued

Downloading the e-PAN Card

On the NSDL Portal:

Applicants can download their e-PAN card through the NSDL portal if they originally applied via the same portal. This download facility is available free of cost if the Income Tax Department has confirmed changes in the PAN card or if the PAN has been allotted within 30 days.

On the UTI Portal:

To download the e-PAN card via the UTI portal:

  • Applicants must have applied for a fresh PAN or the latest change/correction update with UTIITSL.
  • They should have earlier registered a valid and active mobile number or e-mail ID with their PAN record at the Income Tax Department.
  • They may need to apply for a PAN reprint before submitting an application to download the e-PAN.

Documents Required for Application

  • Identity Proof: Voter ID or Aadhaar Card
  • Address Proof: Electricity Bill or Passport
  • Proof of Age: Driving License or Passport

Tracking e-PAN Card Status

It takes approximately 15-20 working days for the e-PAN card to be issued after filing an application. The status can be tracked using the 15-digit acknowledgment number.

To track the status of your PAN card, visit either the NSDL or UTI portal. This service also allows you to track the status of any corrections or updates to your PAN card.

Download e-PAN instantly from the eFiling Portal

  1. Visit the eFiling Portal
    Go to the tax efiling portal and scroll down and click on Instant e-PAN.

    www.incometax.gov.in - Instant e-PAN
  2. New e-PAN
    On the e-PAN page, click Get New e-PAN.

    www.incometax.gov.in - Get New e-PAN
  3. Enter Aadhaar Number
    On the Get New e-PAN page, enter your 12-digit Aadhaar number, select the I confirm that checkbox and click Continue.


     www.incometax.gov.in - Enter Aadhaar Number for e-PAN
  4. OTP Validation
    On the OTP validation page, click I have read the consent terms and agree to proceed further. Click Continue. Next, enter the OTP you receive and click on next.

    www.incometax.gov.in - OTP Validation
  5. Aadhaar e-KYC
    On the Validate Aadhaar Details page, select the I Accept that checkbox and click Continue.

    www.incometax.gov.in - Aadhaar e-KYC
  6. Successful Submission
    On successful submission, a success message is displayed along with an Acknowledgement Number. Please keep a note of the Acknowledgement ID for future reference. You will also receive a confirmation message on your mobile number linked with Aadhaar.www.incometax.gov.in - Successful Submission

Prerequisites for Applying for an Aadhaar-Based e-PAN Card

To apply for an Aadhaar-based e-PAN card, the following conditions must be met:

  • No Existing PAN: The individual must not have been allotted a PAN previously.
  • Valid Aadhaar and Linked Mobile Number: The applicant must have a valid Aadhaar card and a mobile number linked to Aadhaar.
  • Age Requirement: The applicant must not be a minor at the time of the request.
  • Not a Representative Assessee: The applicant should not fall under the definition of a Representative Assessee as per Section 160 of the Income Tax Act.

Read More: How to Surrender PAN Card?

Web Stories: How to Surrender PAN Card?

Official Income Tax Return filing website: https://incometaxindia.gov.in/

How to Surrender PAN Card?

How to Surrender PAN Card?

Important Keyword: Duplicate PAN, PAN, Surrender PAN, TIN NSDL.

How to Surrender PAN Card?

The Income Tax Department (ITD) issues a Permanent Account Number (PAN), an alphanumeric identifier in card form, to individuals upon application. Each PAN allotted and PAN card issued remains valid for a lifetime. However, in cases where PAN holders lose or damage their PAN card, the ITD provides a duplicate PAN card.

There are two methods to apply for a Duplicate PAN card:

  1. Online Method: This method involves applying for a duplicate PAN card through online platforms provided by the ITD.
  2. Offline Method: Alternatively, individuals can apply for a duplicate PAN card through offline channels, typically involving physical forms and submission at designated centers.

In certain scenarios, individuals may inadvertently possess more than one PAN. For example, if someone loses their PAN card and intends to reissue it but encounters discrepancies in their address details, they might apply for a new PAN instead of rectifying the existing one. This can lead to the issuance of multiple PANs, which should be avoided to prevent complications and ensure accurate tax reporting.

How to Surrender PAN Card Online

Follow the steps given below to surrender your PAN card:

  1. Visit the TIN-NSDL portal
    Visit the TIN-NSDL portal and select the “Changes/Correction in existing PAN Data/Reprint of PAN Card” option from the “Application Type” drop-down list. Enter the PAN details of the PAN card you wish to retain here.
  2. Enter the required details
    Hence, fill out the form entirely and click on the “Submit” option. A “Token Number” is generated. You can take a screenshot of the screen in case you might require the token number for future reference. Click on the “Continue with PAN Application Form” option.

    TIN-NSDL - Continue With PAN Application Form Option
  3. Enter the PAN details
    Enter the PAN number of the PAN you wish to surrender under the “Contact & Other Details” section.


    TIN-NSDL - Contact and Other Details
  4. Upload the required documents
    Upload the scanned images of your photograph, signature and the required documents. If an individual is requesting the surrender of PAN, they themselves should sign the acknowledgment receipt, else they must be signed by the authorized signatories.
  5. Complete the payment process
    Hence, complete three sections of the form and click on the “Submit” option. You will then be shown a preview of your application form. Proceed forward to complete the payment.TIN-NSDL - Online PAN Application Sections

After successfully completing the payment process, you’ll be able to download and print the acknowledgment form for future reference and as proof of payment. It’s essential to send a printed copy of this acknowledgment form to NSDL e-Gov, along with two photographs, for further processing. To ensure smooth handling, label the envelope as “Application for PAN Cancellation” and include the acknowledgment number.

The acknowledgment form and documents should be sent to the following address:

NSDL e-Gov at ‘Income Tax PAN Services Unit,
NSDL e-Governance Infrastructure Limited,
5th Floor, Mantri Sterling,
Plot No. 341, Survey No. 997/8,
Model Colony, Near Deep Bungalow Chowk,
Pune – 411 016.

Read More: How to check PAN Aadhaar Link Status?

Web Stories: How to check PAN Aadhaar Link Status?

Official Income Tax Return filing website: https://incometaxindia.gov.in/

How to check PAN Aadhaar Link Status?

How to check PAN Aadhaar Link Status?

Important Keyword: Aadhaar, Income Tax Website, Link Aadhaar PAN, PAN.

Linking your PAN Aadhaar has become mandatory for all individuals. The Central Board of Direct Taxes (CBDT) has extended the deadline for this process from March 31st, 2023, to June 30, 2023. Failing to complete this linking within the specified timeframe may result in various consequences.

Moreover, if the PAN of the holder is not linked with Aadhaar, it becomes inoperative. Therefore, it is crucial to ensure that your PAN is linked with your Aadhaar. You can verify the status of this linking process on the Income Tax e-Filing website. Keeping track of the status allows you to ensure compliance with this requirement and avoid any potential issues that may arise from non-compliance.

Latest Update

The deadline for linking Aadhaar PAN is set for June 30, 2023. If individuals fail to complete this linking process by the specified date, their PAN will become inoperative. However, if they wish to link their PAN with Aadhaar after June 30, 2023, they will be subject to paying certain penalties.

Linking CompletedApplicable Fee
Before 30 June 2023₹500
After 1 July 2023₹1,000

From July 1, 2023 onwards, individuals who have not linked their PAN Aadhaar will face the following consequences as long as their PAN remains inoperative:

  1. No refunds will be issued against such PANs: Taxpayers will not receive any refunds for tax payments made if their PAN is not linked with Aadhaar.
  2. No interest on refunds will be payable: In addition to not receiving refunds, taxpayers will also not be entitled to any interest on the refunds for the period when their PAN is inoperative.
  3. TDS & TCS deducted/collected shall be at a higher rate: Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) will be deducted or collected at a higher rate for transactions involving PANs that are not linked with Aadhaar.

Steps to check status via the Income tax Portal:

  1. Visit the e-filing portal
  2. Click on Link Aadhaar Status from the left side navigationincome tax portal home
  3. Enter PAN & Aadhaar number and click ‘View Link Aadhaar Status’link pan aadhaar status tool
  4. If your PAN Aadhaar is already linked
    If your PAN & Aadhaar are already linked, then you will see a pop-up message as your PAN is already linked with your Aadhaar as shown below
  5. If PAN Aadhaar not linked
    If your PAN & Aadhaar are not linked, you will see a pop-up message as your PAN is not linked with Aadhaar. You can follow these steps to “Link Aadhar” with PAN.

Step 1: Compose the message – UIDPAN<12-digit Aadhaar number><10-digit PAN>

Step 2: Send the above SMS to either ‘567678’ or ‘56161’.

Step 3: Upon sending the SMS, you will receive one of the following responses:

  • If your Aadhaar is already linked with PAN, you will receive the message: “Aadhaar is already associated with PAN (your PAN number) in ITD database. Thank you for using our services.”
  • However, if your Aadhaar is not linked with PAN, you will receive a message stating: “Aadhaar is not associated with PAN (your PAN number) in ITD database. Thank you for using our services.”

Read More: PAN Card Application Process on TIN-NSDL portal

Web Stories: PAN Card Application Process on TIN-NSDL portal

Official Income Tax Return filing website: https://incometaxindia.gov.in/

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