What is PAN Card & How Apply for PAN CARD
Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated tamper proof card, by the Income Tax Department of India.
The Permanent Account Number (PAN) is unique to an individual or entity and it is valid across India. Permanent Account Number once allotted to an individual or entity is unaffected by a change of name, address within or across states in India or other factors.

What is PAN Card & How Apply for PAN CARD

What is Pan Card

Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated tamper proof card, by the Income Tax Department of India.
The Permanent Account Number (PAN) is unique to an individual or entity and it is valid across India. Permanent Account Number once allotted to an individual or entity is unaffected by a change of name, address within or across states in India or other factors.

Structure of PAN card

A typical Permanent Account Number is would look like AFZPK7190K. The logic behind the array of numbers and alphabets is as follows:
First three characters i.e. “AFZ” in the above PAN are alphabetic series running from AAA to ZZZ.
Fourth character i.e. “P” in the above PAN represents the status of the PAN holder.
“P” stands for Individual.
“F” stands for Firm.
“C” stands for Company.
“H” stands for HUF.
“A” stands for AOP.
“T” stands for TRUST etc.
Fifth character i.e. “K” in the above PAN represents first character of the PAN holder’s last name/surname.
Next four characters i.e. “7190” in the above PAN are sequential number running from 0001 to 9999.
Last character i.e. “K” in the above PAN is an alphabetic check digit.

Types of PAN Cards

The Income tax Department has mandated that all tax paying entities register and possess a PAN card. While this applies to individuals, companies, partnership firms, NGOs as well as foreign firms also come under the purview of this directive.
As a result, PAN cards are issued for individuals as well as companies.

Why PAN Card is Required

Purpose of having PAN card
The purpose of having a pan card is strengthened from the fact that from 1 January 2005 it has been made mandatory to quote Permanent Account Number (PAN) on challans for any payments due to Income Tax Department (ITD), while filing returns of income and all correspondence with any income tax authority. Thus Purpose of having Pan Card has become mandatory.
For payment of direct taxes
To file income tax returns
To avoid deduction of tax at higher rate than due
Benefits of PAN card
(a) Sale or purchase of immovable property valued at Rs 5 lakh or more
(b) Sale or purchase of a vehicle other than a two wheeler
(c) Payment to hotels or restaurants an amount exceeding Rs 25,000 at any one time
(d) Payment in cash an amount exceeding Rs 25,000 in connection with travel to any foreign country
(e) Payment of an amount of Rs 50,000 or more to the Reserve Bank of India for acquiring bonds
(f) Payment of an amount of Rs 50,000 or more to a company or an institution for acquiring bonds or debentures
(g) Payment of an amount of Rs 50,000 or more to a company for acquiring shares
(h) Any mutual fund purchase
(j) Deposit exceeding Rs 50,000 with any single banking institution in 24 hours.
(k) Payment exceeding Rs 5 lakh for purchase of bullion and jewellery

Advantage of PAN

PAN is a unique identification number assigned to taxpayers and hence it is used to track all financial information like payment of taxes, investments made and debt liability of an entity, to a single customer.
PAN is the best possible way to keep track of your tax payment. Otherwise, you might be required to pay it multiples times since your tax payment cannot be verified
Since, PAN is unique for every entity and hence, misuse of the same is almost impossible for purposes of tax evasion etc.
PAN card can be used as a document that is required to avail connections like electricity, telephone, LPG and internet.
Advantage of PAN includes deduction of fraudulent transactions, reduce tax evasion, transparency in transactions between buyer and seller.
Since PAN card contains information like Name, Age and photograph, it can be used throughout the country as a valid identity proof

HOW TO APPLY

Use ‘Form 49A’ or ‘Form 49AA’ as applicable to you. Find more details at incometaxindia.gov.in.
You can find the location of PAN card offices in any city from the websites of the Income Tax Department or National Securities Depository Limited (NSDL).
You will need copies of proof of Identity and address.
Payment can be made using cash, cheque or demand draft.
You can also apply online through websites of the I-T Department or NSDL.
If you are applying online, the processing fee can be paid via net banking, credit card or debit card.
Track the status of your application online.

WHO ISSUES PAN CARD

A PAN card can be applied for through the NSDL (National Securities Depository Limited) as well as through the UTIISL (UTI Infrastructure Technology and Services Limited). Applicants can submit their PAN card applications either offline or online.

DOCUMENTS REQUIRED IN OBTAINING PAN CARD

Certain basic documents for proof of address and identity proof are required to be furnished by the PAN applicant. NSDL verifies this information with their central database and rejection of PAN applications is not an uncommon thing when information furnished is incorrect or incomplete.

Steps to Procure Duplicate PAN Card if you have Lost Your PAN Card

PAN or Permanent Account Number is an alphanumeric code consisting of ten digits that is provided to citizens by the Income Tax Department of India. This document is an extremely important proof of identity. However, in case someone loses or damages their PAN card, the steps below should be followed in order to procure a duplicate PAN card.
Applicants must visit the official web portal of NSDL and apply for a PAN Change Request form and fill in all the details.
If applicants wish to procure a new card without changing any details or the PAN number in case they have lost or damaged their original card then after filling all details, they should not select any box on the left of the margin.
As long as there are no changes to be made in the PAN card, their address will be updated in the database of ITD based on the address provided in the form.
Once this is done, they will have to submit a document of identity proof such as passport or Aadhar number, a document for address proof such as Voters ID or utility bills, along with proof of issuance of PAN number such as a photocopy of the damaged/lost PAN card and submit the form.
A nominal fee will have to be paid online either through credit card/debit card or net banking after which they will receive an acknowledgement through which they can track the status of their application.

Online PAN Card Application Process

The online application process for a PAN card is mentioned below:
Visit the TIN NSDL or UTIISL websites and select the New PAN option
Select Form 49A for Indian citizens (including NRE/NRI/OCI individuals)
Fill in the details in the online form, mentioning details such as your full name, address, date of birth, gender, telephone number, income details etc.
On filling the form, submit it and pay the processing fee
Print the page with the 15 digit acknowledgement and sign in the space provided.
Affix passport sized photographs on the acknowledgement, proof of identity and proof of address documents and Demand Draft (if you are paying through DD).
The above are to be sent to the NSDL office by post within 15 days of submitting the online application.
The PAN will then be sent to the address within 15 working days.

Offline PAN Card Application Process

Download the PAN card application form from the NSDL or UTIISL websites or collect a copy from UTIISL agents.
Fill in the form and attach supporting documents (proof of identity, address and photographs)
Submit the form and documents to the NSDL office along with the processing fee.
The PAN card will be sent to the address mentioned in the form within 15 working days.

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