What Is Pan Card | Importance Of Pan Card

Hope, we all have PAN Card but most of us didn’t know a brief about pan card. So, if you want to know in brief then here we are going to discuss it.

PAN stands for a permanent account number. That is an identification number issued by the Income Tax department to all taxpayers in India. It is the combination of 10-digit number-and alphabet and unique for each individual.  This number is identified by your parent’s card number.

pan card

The pan card number should be something like BCADG4548H. With help of this number, the department enables to monitor transactions of the holder. It also helps the income tax department to keep track of the tax paid by an individual. This type of the first card was issued in 1964. it is also issued to foreigners like investors.

This acts as a primary key for information storage and shared across the country. So, two tax paying entities can never have the same PAN.

An Overview Of Pan Card

Only income tax department and government of India have authority to issue pan card.

pancard overview

Types Of Pan Card

There are mostly 7 types of Pan Cards these are listed below.

  • Company
  • Hindu undivided family
  • Individual
  • Trust
  • Society
  • Foreigners
  • Firms

Eligibility For The Pan Card

PAN Card issued to anyone who pays taxes in India, individuals, companies or non-resident Indians.

Documents Needed For Pan

Three types of documentation needed for the pan is address proof, identity proof and proof of date of birth.

  1. Address Proof Document
  • Copy of all Document Not more than 3-month-old.
  • Electricity bill
  • Landline or broadband connection bill
  • Consumer gas connection card or piped gas bill
  • Credit card statement
  • Passport
  • Bank account statement
  • Depository account statement
  • Copy of post office passbook having an address of the applicant.
  • Passport of spouse
  • Aadhaar card issued by the UIDAI
  • Driving license
  • Latest property tax assessment order
  • Voter ID card
  • Domicile certificate issued by the government
  • Property registration document
  • Employer’s certificate in original
  1. Document of Identity Proof
  • Passport
  • Driving License
  • Arm’s license
  • Ration card having a photograph of the applicant
  • Voter id card
  • Adhaar card
  • Pensioner card photograph of the applicant
  1. Any date of  birth proof document
  • Pension payment order
  • Matriculation certificate
  • Passport
  • Driving license
  • Marriage certificate
  • Matriculation certificate.
  • Domicile certificate issued by the government

If you want any other category instead of individual, then bellow is the full list of the valid document for a PAN card.

Applicant Document of identity, address, and date of birth
Hindu Undivided Family
  1. An affidavit by the Karta of the Hindu undivided family stating the name, father’s name and address of all the coparceners on the date of application.
  2. Copy of any document applicable in the case of an individual, in respect of Karta of the Hindu undivided family, as identity proof, address, and date of birth.
Company registered in India Copy of certificate of registration.
The firm formed of registered in India Copy of certificate of registration.
Association of trust registered in India
  1. Copy of trust deed or
  2. Copy of certificate of registration number which was issued by charity commissioner.
Individuals not being a citizen of India
  1. Identity proof
  • Passport or
  • Person of Indian origin card issued by the government of India. or
  • Bank account statement in country of residence.or

(2) proof of address

  • Passport
  • Overseas citizenship of India card which is issued from the Government of India.

(Copy of all the mentioned document)

Company registered outside India
  1. certificate of registration issued in the country where the applicant is located, duly attested by “Apostille” or by Indian embassy.or
  2. Certificate of registration issued in India or of approval granted to set up an office in India by Indian authorities.

Why PAN card is important for us

Pan card is a very important identity proof for any individual In India. Here we are going to explain in brief when we need the pan card. So, lets-see.

In new bank account opening  

You have to mention your PAN card details in the application form at the time of opening a new bank account. Whether it is private, public, co-operative or another bank. “ even your account is opened and active, you will still have to come out with your PAN details for depositing Rs 50,000 or more in your bank account. You will also have show your PAN details while purchasing a draft from the bank or paying for orders for an amount of Rs 50,000 or more during any day. Also at the time of applying for debit or credit card, you must submit your PAN details,”

Traveling

Keep in mind that don’t forget to carry your PAN card while traveling. If you are traveling in a foreign country and spend more than 25,000 or 25,000 in a day, then you have to submit a copy of your PAN details.

Buying or selling a vehicle

You have to submit a copy of your pan card if you are buying or selling a vehicle whose value is more than 5 lakhs.

Buying or selling a property

Buying or selling a property requires a lot of money. Therefore, if you are going to purchase or sell a property worth more then 5 lakh or more, you have to submit a copy of your PAN.  

Taking a new phone connection

“According to the role of government of India, it’s mandatory that all telecom companies get pan details of each applicant to reduce terrorist activity and extrusion cases.”

Opening account with the share market

If you want to open an account with share broker in share market. “For this, it’s necessary to submit the copy of your pan card. If you don’t provide, your application will be rejected.”

Loans

If you want to take a loan from any bank or any loan provider then you have to show your pan card because all loan providers, require you to submit your pan details when you are applying for a loan.

How To Apply For Pan Card

For fresh PAN card allotment, you can apply through the internet. And also for the correction or change of the PAN card for existing PAN card you may also make through the internet.

The application can be made through NSDL portal. Excluding all taxes, the charge of applying is just only Rs. 93 for indian communication address and 864 for foreign communication address. You can pay this through debit/credit card, demand draft or net-banking.  After the acceptance of application and payment, the applicant has to send the supporting document through courier or post to NSDL/UTITSL. After receiving the documents, PAN application would be processed.

According to RBI rule, in e-commerce transactions, it is necessary to provide PIN while executing an online transaction. So, before making payment for online PAN applications using the credit card/debit card, it is necessary for an applicant that obtain a PIN from Bank whose credit/debit card/net banking is being used.  

Steps For Applying PAN Online (New User)

Here we are going to discuss steps to applying PAN online. As we discussed above that you can apply for PAN via NSDL or UTITSL. Both are authorized to issue PAN in India. Here we will show you how to apply through NSDL website.

  1. Go to the page which will be linked to NSDI, you will get an online PAN application. Select New PAN under application type. If you are an Indian citizen then select New Pan-Indian citizen (FoRm 49A). And if you are a foreigner then select New Pan – Foreign Citizen (Form 49AA)

application form

2. Select PAN card category according to your need.

3. Fill your personal details then solve the captcha and click on submit button.

4. For authentication now you have three choices.

  • Authenticate via Aadhaar to avoid sending any documents.
  • Scan and upload document via e-sign.
  • Physically submit documents.
  1. Enter all detail which is required in the screen and hit the Next button.
  2. In this step, you have to fill your personal detail and hit Next.
  3. Now, you will have to hit on the banana skin that’s the AO code. Select one of the four choices.
  • Indian Citizens
  • Government Category
  • Defense Employees
  • NRI and Foreign Citizens
  1. Under Choose AO code section. Select state and area of residence. And you will get the full list of AO. click on right AO code and it’ll be auto-filled in the form. And now Click Next.
  1. Select the documents which have submitted as age proof and residence, fill the required details, and then click submit.
  1. Now you will be on the payment page and you can choose any online payment method.
  1. After the payment, you will be asked to authenticate through Aadhaar OTP. An email will be received by you from NSDL about your application and pan card will be couriered to you after the processing. Save your acknowledgment number.

Hope this article helps you. If you like this article then please don’t forget to comment.

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