Permanent Account Number (abbreviated PAN) is basically a unique Identification number issued under the Income Tax Act, 1961 by the Indian Income Tax Department under the Charge of the Central Board of Direct Taxes to an individual, firm, company, Hindu Undivided Family (HUF) or any other person. It comprises a unique 10- character alphanumeric number. Furthermore, it is used as proof of identification.
In several financial transactions for eg. Purchasing and selling of properties over and above the specified limits, the opening of Bank accounts, receiving the taxable salary or professional fees, etc. the requirement of a PAN Card is mandatory.
The key purpose of the Government behind the introduction of the PAN Card was to prevent the evasion of taxes by taxpayers by linking all the financial transactions made by them to their bank accounts. Hence, keeping a sharp check on all the financial transactions.
How to apply for PAN Card?
One can apply for a PAN Card via Online mode
Both these portals have been authorized by the government of India to issue the PAN to the applicants or to make the necessary changes/corrections within the PAN on the request of the applicants on behalf of the Indian Income Tax Department.
Online mode is the best and convenient way to obtain PAN. The applicant of PAN is only required to fill all the necessary details in the online application form and submit the same along with the requisite fees.
Steps to apply for PAN card
- Visit the website of NSDL
- Fill all the necessary details in the application form and submit the same.
- Click the “submit button”
- On the next page, you will receive the token number.
- Now, click on “continue with PAN application form” appearing on the screen.
- Three options will appear on the screen which is
- Submit digitally through e-KYC and e-sign (Paperless)
- Submit scanned images through e-Sign, and
- Forward application documents physically.
- Click on e-KYC and e-sign (paperless) option where the details of aadhaar no.
- After filling in all the necessary details one by one click on ‘NEXT’.
- In the last step, you have to upload the required supporting documents along with your photograph and signature.
- After this, make the payment via any available online mode.
- Once the payment is made, the aadhaar authentication process will happen where OTP will be sent to registered mobile no or e-mail id linked with your aadhaar.
- Enter OTP and click on the submit button.
- On the next and last page, a 15 digit acknowledgment no. will be generated.
- Save and print this acknowledgment number.
- The PAN Card will then be issued by the department within 48 hours.
The validity of PAN Card
PAN, once issued by the department remains valid for the entire lifetime of the applicant. Moreover, any change in address, marital status, etc. does not affect the validity of PAN.
How to apply for a Duplicate PAN Card?
Have you lost, misplaced, or damaged your PAN Card, and now you want to apply for a duplicate one? Then there is no need to worry at all. We are available to help you out in this matter.
Steps to apply for duplicate PAN card
- Visit the official website of NSDL.
- Fill all the necessary details in the PAN Change Request form.
- However, if the applicant does not wish for any changes of details within the new PAN Card, then fill all the necessary details within the form without selecting any box appearing on the left margin.
- In the next step, upload the identity and address proofs and submit the form.
- An acknowledgment number will be generated after the payment of requisite fees online.
- Furthermore, with the help of acknowledgment no, the applicant can check the status of his application.
Advantages of holding PAN
PAN Card offers several advantages to the PAN cardholders such as
- Identity proof
- In the payment of direct tax
- In the filing of Income Tax Returns
- To enter into the asset (whether movable or immovable) related transactions over and above specified limits.
- In the opening a new Bank account
- To get a new telephone connection.
Furthermore, the PAN Card helps the Government in tracking financial transactions.