e-PAN is a digitally signed PAN card issued in electronic form and it is a valid proof of allotment of PAN.
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The Permanent Account Number (PAN) is a unique ten-digit alphanumeric number issued by the Government of India to all tax payers. It is a universal identification tool that tracks all financial transactions taxable by the Government. This Permanent Number assigned to the PAN holder serves as an essential ID Proof. It is allotted to each tax payer by the Income Tax Department of India under the supervision of Central Board of Direct Taxes. The PAN does not change during the lifespan of the PAN holder.
A PAN card is widely accepted as a valid identification proof. It is a trusted identification document for all financial institutions and other organizations.
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.
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.
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.
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.
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:
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:-
|
Copy of any of the following documents bearing the address mentioned in the application:-
|
Copy of any of the following documents bearing the name, date, month and year of birth of the applicant as mentioned in the application:-
|
| 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
|
- |
| 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
|
Note
|
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
|
Attestation Not Required
|
| 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 |
|
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 |
|
| Individual applicants other than married ladies |
|
| Companies |
|
| Firms / Limited Liability Partnerships |
|
| AOP/ Trust/ BOI/ AJP/ LOCAL Authority |
|
e-PAN is a digitally signed PAN card issued in electronic form and it is a valid proof of allotment of 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.
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.
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.
Yes, it is compulsory to quote PAN on return of income.