PAN is used for the following purposes

Identity proof

A PAN card is widely accepted as a valid identification proof. It is a trusted identification document for all financial institutions and other organizations.

IT Return filing

All individuals who are eligible to pay income tax should file their IT returns. For filing IT returns, one should have the PAN card. It is a compulsory document for filing IT returns.

Opening a bank A/c

All the co-operative, public and private banks have made it mandatory for an individual to have a permanent account number (PAN) in order to open a savings or a current account.

Benefits of PAN Card

Purchase and sale of property
One of the best benefits of PAN card is that it is accepted in formalities involved during buying or selling immovable assets. A PAN card is mandatory for a transaction valued Rs. 10 lakhs or more.

To claim income tax refund
Many times, a taxpayer needs TDS is deducted at the time of credit of income. To get the refund, the individual needs to link his/her PAN card to the bank account.

For Startups
In order to start a business or a company, it is mandatory to have a PAN card in the name of the organization.

Tax deduction
A PAN card is very important for taxation. If an individual who is receiving Rs. 10,000 in the form of interest from either a savings account or an FD and has not linked his PAN card with the bank account, then the bank will debit 20% of TDS instead of 10%.

For Banker’s cheque and Pay order
A PAN card is essential while requesting for a pay order, bank cheques and drafts. If an individual is transacting more than Rs. 50,000 then he/she will need the PAN card to complete the transaction.

Restaurant and hotel bills
If your hotel or restaurant bill exceeds Rs. 50,000 then for paying the bill you will need a PAN card.

To open a demat account
An individual should possess a PAN card to open a demat account, which is used to hold shares in the dematerialized form.

Low misuse chances
The possibility of PAN card misuse is minimal. Notably, a PAN card will not change even if it is lost or stolen.

For taxation
A PAN card helps the Income Tax Department to assess an individual or entity’s monetary transactions. It helps in identifying persons involved in tax evasion. The PAN card has the name, photograph and other related information that even make it a valid identity proof.

For tax evaluation
A PAN card is a tool that evaluates total tax revenue in India.

Easy accessibility
AA minor can also avail a PAN card by providing his/her guardian’s PAN details.

How to Choose Correct PAN Application Form

There are Three Kinds of PAN Application Forms

PAN APPLICATION FORM DESCRIPTION
Form 49A To be filled by Indian Citizens, Entities incorporate in India and Indian Companies, Unincorporated entities formed in India
Form 49A Change/Correction in PAN
Form 49AA Only foreigner PAN apply Form

The new application form is useful for applicants who require a Fresh PAN and have not been allotted one before. A duly filed and signed PAN application form along with supporting documents can be submitted to any TIN-FCs or PAN Centers managed by Income Tax Department.

What Do the Alphabets and Number on Your PAN Mean?

Your Permanent Accounts Number is not a series of random numbers and letters. The structure of PAN is actually quite interesting Here’s what each component of PAN means:

  • First Three Characters: These are a sequence of alphabets from AAA to ZZZ.
  • Fourth Character: The fourth character signifies the type of taxpayer that you are.
    • A – Association of Persons (AOP)
    • B – Body of Individuals (BOI)
    • C – Company
    • F - Firm/Limited Liability Partnership
    • G – Government Agency
    • H – HUF (Hindu Undivided Family)
    • L – Local Authority
    • J – Artificial Judicial Person
    • P – Individual
    • T – Trust
  • Fifth Character: The fifth character in PAN is the first letter of your surname. So, If a person is named ‘Manish Gupta’, the fifth character of his PAN will be ‘G’
  • Sixth to Ninth Character: This is from a sequences of numbers between 0001 and 9999.
  • Last Character: This is an alphabets check Letter.

Documents Required For Applying PAN Card

For Individual and HUF (Including those Located Outside India)

Proof of Identity Proof of Address Proof of date of birth
Copy of any of the following documents bearing name of the applicant as mentioned in the application:-

  • Aadhaar Card issued by the Unique Identification Authority of India or
  • Elector’s photo identity card or
  • Driving License or
  • Passport or
  • Ration card having photograph of the applicant or
  • Arm’s license or
  • Photo identity card issued by the Central Government or State Government or Public Sector Undertaking or
  • Pensioner card having photograph of the applicant or
  • Central Government Health Scheme Card or Ex-Servicemen Contributory Health Scheme photo card
Copy of any of the following documents bearing the address mentioned in the application:-

  • Aadhaar Card issued by the Unique Identification Authority of India or
  • Elector’s photo identity card or
  • Driving License or
  • Passport or
  • Passport of the spouse or
  • Post office passbook having address of the applicant or
  • Latest property tax assessment order or
  • Domicile certificate issued by the Government or
  • Allotment letter of accommodation issued by the Central Government or State Government of not more than three years old
  • Property Registration Document
Copy of any of the following documents bearing the name, date, month and year of birth of the applicant as mentioned in the application:-

  • Aadhaar card issued by the Unique Identification Authority of India or
  • Elector’s photo identity card or
  • Driving License or
  • Passport or
  • Matriculation certificate or Mark sheet of recognized board or
  • Birth certificate issued by the municipal authority or any office authorised to issue birth and death certificate by the Registrar of Birth and Deaths or the Indian Consulate as defined in clause (d) of sub-section (1) of section 2 of the Citizenship Act, 1955 (57 of 1955) or
  • Photo identity card issued by the Central Government or State Government or Central Public Sector Undertaking or State Public Sector Undertaking or
  • Domicile certificate issued by the Government or
  • Central Government Health Service Scheme photo card or Ex-servicemen Contributory Health Scheme photo card or
  • Pension payment order or
  • Marriage certificate issued by the Registrar of Marriages or
  • Affidavit sworn before a magistrate stating the date of birth
Certificate of identity in Original signed by a Member of Parliament or Member of Legislative Assembly or Municipal Councilor or a Gazetted officer Copy of following documents of not more than three months old

  • Electricity Bill or
  • Landline Telephone or
  • Broadband connection bill or
  • Water Bill or
  • Consumer gas connection card or book or piped gas bill or
  • Bank account statement or as per Note 2 or
  • Depository account statement or
  • Credit card statement
-
Bank certificate in Original on letter head from the branch(alongwith name and stamp of the issuing officer) containing duly attested photograph and bank account number of the applicant Certificate of address signed by a Member of Parliament or Member of Legislative Assembly or Municipal Councilor or a Gazetted officer -
- Employer certificate in original -
Note

  • In case of Minor, any of the above mentioned documents as proof of identity and address of any of parents/guardians of such minor shall be deemed to be the proof of identity and address for the minor applicant.
  • For HUF, an affidavit made by the Karta of Hindu Undivided Family stating name, father’s name and address of all the coparceners on the date of application and copy of any of the above documents in the name of Karta of HUF is required is required as proof of identity, address and date of birth.
Note

  • In case of an Indian citizen residing outside India, copy of Bank Account Statement in country of residence or copy of Non-resident External (NRE) bank account statements (not more than three months old) shall be the proof of address.

Foreign Citizen located within / outside India at the time of application for PAN

For Individuals and HUF

Proof of Identity Proof Of Address (Proof Should Contain The Address Mentioned In The PAN Application Form)
Attestation Not Required

  • Copy of passport or
  • Copy of Person of Indian Origin (PIO) card issued by Government of India or
  • Copy of Overseas Citizen of India (OCI) card issued by Government of India Or
Attestation Not Required

  • Copy of Passport, or
  • Copy of Person of Indian Origin (PIO) card issued by Government of India or
  • Copy of Overseas Citizen of India (OCI) card issued by Government of India or
  • Copy of Bank account statement in the country of residence or
  • Copy of Non-resident External (NRE) bank account statement in India, or
  • Copy of Certificate of Residence in India or Residential permit issued by the State Police Authorities or
  • Copy of Registration certificate issued by the Foreigner's Registration Office showing Indian address or
  • Copy of Visa granted & Copy of appointment letter or contract from Indian Company & Certificate (in original) of Indian address issued by the employer.
Attestation Required

Copy of other national or citizenship Identification Number or Taxpayer Identification Number duly attested by “Apostille” (in respect of countries which are signatories to the Hague Convention of 1961) or by the Indian Embassy or High Commission or Consulate in the country where the applicant is located or authorised officials of overseas branches of Scheduled Banks registered in India (in prescribed format) .
Attestation Required

Copy of other national or citizenship Identification Number or Taxpayer Identification Number duly attested by “Apostille” (in respect of countries which are signatories to the Hague Convention of 1961) or by the Indian Embassy or High Commission or Consulate in the country where the applicant is located or authorised officials of overseas branches of Scheduled Banks registered in India ( in prescribed format).

Note: In case Office Address (of India) is mentioned in application made by foreign citizens, then it is mandatory to provide following documents as proof for office address in addition to any of the above residence proof: I. Copy of appointment letter/contract from Indian Company and II. Certificate (in original) of address in India of applicant issued by authorized signatory of employer on employer's letter head mentioning the PAN of the employer and III. Copy of PAN card for the PAN mentioned in the employer's certificate.

For Other Than Individual and HUF

The table given below shows the documents that can serve as proof of identity as well as proof of address for Following Applicant (other than Individual and HUF)

1) Having their own Office in India

Type of Applicant Document to be Submitted
Company Copy of Certificate of Registration issued by the Registrar of Companies.
Partnership Firm Copy of Certificate of Registration issued by the Registrar of Firms or Copy of partnership deed.
Limited Liability Partnership Copy of Certificate of Registration issued by the Registrar of LLPs
Trust Copy of trust deed or copy of certificate of registration number issued by Charity Commissioner.
Association of Person, Body of Individuals, Local Authority, or Artificial Juridical Person Copy of Agreement or copy of certificate of registration number issued by charity commissioner or registrar of cooperative society or any other competent authority or any other document originating from any Central or State Government Department establishing identity and address of such person.

2) Having no office of their own in India

Type of Applicant Document to be Submitted
Company/Firms/ Limited Liability Partnership/AOP (Trusts)/AOP/ BOI/Local Authority/Artificial Juridical Person
  • Copy of Certificate of Registration issued in the country where the applicant is located, duly attested by “Apostille” (in respect of the countries which are signatories to the Hague Convention of 1961) or by the Indian Embassy or High Commission or Consulate in the country where the applicant is located or authorised officials of overseas branches of Scheduled Banks registered in India.
  • Copy of registration certificate issued in India or of approval granted to set up office in India by Indian Authorities.

Supporting Documents required for changes in PAN Data

Case/ Applicant Type Document Acceptable For Change Of Name/Father’s Name
Married ladies - change of name on account of marriage
  • Marriage certificate or
  • Marriage invitation card or
  • Copy of passport showing husband’s name or
  • Publication of name change in official gazette or
  • Certificate issued by a Gazetted officer in prescribed format (only for change in applicant’s name)
Individual applicants other than married ladies
  • Publication of name change in official gazette or
  • Certificate issued by a Gazetted officer in prescribed format (only for change in applicant’s name)
Companies
  • ROC’s certificate for name change
Firms / Limited Liability Partnerships
  • Revised partnership deed or
  • Registrar of Firm/LLP’s certificate for name change
AOP/ Trust/ BOI/ AJP/ LOCAL Authority
  • Revised Deed/ Agreement or
  • Revised registration certificate

Pricing

Normal

Starting at Rs. 359 /- Onwards
  • - For Individual, LLP, Partnership, HUF, AOP, BOI, Society, Trust

Standard

Starting at Rs. 1,499 /- Onwards
  • For Non-Resident

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Frequently Asked Questions

What is e-PAN? Is e-PAN a valid proof of allotment of PAN?

e-PAN is a digitally signed PAN card issued in electronic form and it is a valid proof of allotment of PAN.

Is it compulsory to link Aadhaar with PAN?

Section 139AA of the Income Tax Act states that every person who has PAN as on July 1, 2017 is required to link his/her PAN with his/her Aadhaar number. Section 139AA also requires mandatory quoting of Aadhaar while applying for new PAN and also while filing return.

Is there any third party verification conducted to verify identity and address of PAN Applicants along with genuineness of documents submitted by them?

Yes. As per procedure prescribed by Income Tax Department, third party verification may be conducted to verify identity and address of PAN applicants along with genuineness of documents submitted by them during PAN application. If found fake, the Income Tax Department may take suitable action.

Do I need to apply for new PAN when I move from one city to another?

Permanent Account Number (PAN), as the name suggests, is a permanent number and does not change.

Changing the address though, may change the Assessing Officer. Such changes must, therefore, be intimated to ITD so that the PAN database of ITD can be updated. One can intimate change in address by filling up the form for Request for New PAN Card or/and Changes or Correction in PAN data. This form can be submitted at any TIN-FC or online at NSDL e-Gov - TIN website.

Is it compulsory to quote PAN in “Return of Income”?

Yes, it is compulsory to quote PAN on return of income.