Important Keyword: Form 49A, PAN, PAN Application, TIN NSDL, UTIITSL.
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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:
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.
Bank Account Opening: Mandatory since January 1st, 2016, for opening a bank account, ensuring financial transparency.
Phone Connection: Necessary for obtaining a phone connection, ensuring accountability in telecom transactions.
Gas Connection: Required for procuring a new gas connection, aiding in monitoring energy-related transactions.
Hotel and Restaurant Payments: Mandatory for one-time payments exceeding INR 25,000 in hotels and restaurants, preventing fraudulent transactions.
Foreign Travel: Essential for cash payments exceeding INR 25,000 during foreign travel, ensuring financial transparency.
Tax Deduction and Evasion Prevention: Facilitates the deduction of fraudulent transactions, reduces tax evasion, and ensures transparency in buyer-seller transactions.
Financial Transactions: Mandatory for various financial transactions such as availing institutional financial credits, purchasing high-end consumer items, dealing in securities, etc.
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).
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)
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).
The next four characters are sequential numbers running from 0001 to 9999 (E.g. ALWPG5809L).
The last character, i.e., the tenth character is an alphabetic check digit (E.g. ALWPG5809L).
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:
Visit the TIN-NSDL website.
Fill out the online application form.
Submit the form along with the required documents and fees.
Upon successful submission, you will receive an acknowledgment number.
Use this number to track the status of your application.
UTIITSL:
Visit the UTIITSL portal.
Complete the online application process.
Submit the form along with the necessary documents and fees.
Upon submission, you will receive an acknowledgment number.
Utilize this number to monitor your application status.
Offline Application:
Download FORM 49A from the official website.
Review the instructions before filling out the form.
Gather the necessary supporting documents for PAN.
Complete the form accurately and attach the required documents.
Submit the filled form, along with the supporting documents and application fees, at the PAN application center.
Upon acceptance, you will receive an acknowledgment containing a unique number.
Use this number to keep track of your application’s progress.
Important Keyword: PAN Aadhaar Link, Income Tax Account, Income Tax Website, Link Aadhaar PAN, PAN.
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PAN Aadhaar Link: Step-by-step Process
It’s imperative to link your PAN and valid Aadhaar number by June 30, 2023, as mandated by the government. Failure to do so will render your PAN “inoperative” starting from July 1, 2023, which entails certain consequences.
Latest Update
The deadline for PAN Aadhaar Link has seen several extensions, from March 31, 2022, to March 31, 2023, and now extended further to June 30, 2023. However, after this latest extension, taxpayers who fail to link their PAN and Aadhaar by July 1, 2023, will face consequences while their PAN remains inoperative:
No Refunds: No refunds will be issued against such PAN during this period.
No Interest on Refunds: Interest will not be payable on any refund due during this period.
Higher TDS/TCS Rates: TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) deductions will be at a higher rate, as specified in the Income Tax Act.
It’s important to note that this additional window for PAN Aadhaar Link comes with a nominal fee, the amount of which depends on the date on which the linking is completed.
Linking Completed
Applicable Fee
Before June 30, 2023
₹500
After July 1, 2023
₹1,000
What is PAN Aadhaar Link?
The PAN (Permanent Account Number) and Aadhaar are vital identification tools issued by the government, each serving distinct purposes. Linking these two unique identification numbers holds significance for both legal compliance and operational efficiency.
PAN:
PAN, a 10-digit alphanumeric code issued by the Income Tax Department, serves as a crucial tool for tax-related transactions and identity verification.
Aadhaar:
Aadhaar, a 12-digit unique number issued by the UIDAI, is aimed at providing universal identity acceptance across India, encompassing biometric and demographic information.
Benefits of PAN Aadhaar Link:
Comprehensive Activity Trail: Linking Aadhaar with PAN streamlines the tracking of all financial transactions, aiding the Income Tax Department in monitoring activities efficiently.
Easy E-Verification: Taxpayers can seamlessly e-verify their returns without digital signatures, enhancing the tax filing process.
Prevention of Duplicate PANs: By linking PAN with Aadhaar, the government can identify individuals with multiple PAN cards, facilitating streamlined governance.
Enhanced Fraud Prevention: The integration of PAN and Aadhaar enables better oversight of transactions, reducing the scope for fraudulent activities and tax evasion.
Exemptions from Mandatory Linking:
Certain categories of individuals, such as residents of specific states, non-resident Indians (NRIs), and individuals above the age of 80, are exempt from the mandatory linking of Aadhaar with PAN.
Consequences of Non-Linking:
Failure to link PAN with Aadhaar can result in significant consequences, including rendering the PAN inoperative, higher tax deductions, penalties, and restrictions on financial transactions.
Process of PAN Aadhaar Link Online:
The linking process involves two steps: payment of a prescribed fee on the Income Tax Portal and submission of the PAN-Aadhaar link request. Taxpayers can complete this process conveniently through the Income Tax e-filing portal.
Submit an online request to link PAN Aadhaar
The request can be made in 2 ways:
Income Tax Portal – Pre Login/Post Login
Via SMS
Steps to link PAN Aadhaar on the Income Tax portal(Pre Login)
Visit the e-Filing portal Navigate to the Income tax e-filing portal
Click on “Link Aadhaar” from the left side nav On your Dashboard, under the Link Aadhaar to PAN option, click Link Alternatively, go to ‘My Profile > Personal Details and select ‘Link Aadhaar’
Enter your PAN & Aadhaar details Enter the required details such as PAN, Aadhaar, name as per Aadhaar, and a valid mobile number.
Note: It is mandatory to give your consent by selecting the check box ‘I agree to validate my Aadhaar details’. In case only your year of birth is mentioned in your Aadhaar card, then select the check box asking I have only year of birth on Aadhaar card.
Success Message On success, you will get a message about your Aadhaar-PAN linking request being sent to UIDAI. Once the application is successful, you can verify the status of the application after 2-3 days.
Steps to link PAN Aadhaar on the Income Tax portal (Post Login)
Step 1: Visit the e-Filing portal and log in using your IT portal credentials
Step 2: On your Dashboard, under the Link Aadhaar to PAN option, click Link Alternatively, go to ‘My Profile > Personal Details and select ‘Link Aadhaar’
Step 3: Next, enter the required details such as PAN, Aadhaar, name as per Aadhaar, and a valid mobile number.
Note: It is mandatory to give your consent by selecting the check box ‘I agree to validate my Aadhaar details’. In case only the year of birth is mentioned in your Aadhaar card, then select the check box asking ‘I have only year of birth in Aadhaar card’.
Step 4: On success, you will get a message about your Aadhaar-PAN linking request being sent to UIDAI. Once the application if successful, you can verify the status after 2-3 days.
Steps to link PAN Aadhaar via SMS
Individuals can conveniently link their PAN (Permanent Account Number) with Aadhaar using the SMS facility. Follow these simple steps:
Compose Message: Type a message in the following format: UIDPAN <12-digit Aadhaar> <10-digit PAN> Example Message: For instance, if your Aadhaar number is 256514531487 and PAN is ABCDP5858X, your message should be: UIDPAN 256514531487 ABCDP5858X Send Message: Send the composed message to either 56161 or 567678 from your registered mobile number.
Confirmation: After sending the message, you will receive a confirmation message acknowledging the successful linkage of your PAN and Aadhaar.
Important Keyword: e-PAN, PAN, PAN Status, TIN NSDL, UTIITSL.
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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:
Indian Residency: The applicant must be an Indian resident.
Individual Applicant: The application must be made by an individual, not a company or a member of a Hindu Undivided Family (HUF).
Aadhaar Card: The individual must possess a valid Aadhaar card.
Linked Mobile Number: The applicant must have a valid mobile number linked to their Aadhaar card.
Verified Aadhaar Details: The details on the applicant’s Aadhaar card must be verified.
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:
NSDL Website
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
Visit the eFiling Portal Go to the tax efiling portal and scroll down and click on Instant e-PAN.
New e-PAN On the e-PAN page, click Get New e-PAN.
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.
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.
Aadhaar e-KYC On the Validate Aadhaar Details page, select the I Accept that checkbox and click Continue.
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.
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.
Important Keyword: Duplicate PAN, PAN, Surrender PAN, TIN NSDL.
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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:
Online Method: This method involves applying for a duplicate PAN card through online platforms provided by the ITD.
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:
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.
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.
Enter the PAN details Enter the PAN number of the PAN you wish to surrender under the “Contact & Other Details” section.
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.
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.
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.
Important Keyword: Aadhaar, Income Tax Website, Link Aadhaar PAN, PAN.
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How to check PAN Aadhaar Link Status?
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 Completed
Applicable 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:
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.
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.
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.
Check Aadhar PAN link status using the Income Tax Portal
Click on Link Aadhaar Status from the left side navigation
Enter PAN & Aadhaar number and click ‘View Link Aadhaar Status’
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
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.
Check Aadhar PAN link status by SMS
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.”
