PAN Card- Online Application Process and Documents Required

Shubham Chauhan

17 Mar, 2023

PAN or Permanent Account Number is a ten-digit alphanumeric code used to carry out financial transactions. The Income Tax department of India issues a PAN card to anyone who applies for it. Every taxpayer in India is assigned a PAN through which he can pay his taxes and file Income Tax Returns. The concept of PAN was introduced in 1972 by the Government of India. During that time, PAN was voluntary for individuals but as time passed, it was made mandatory for every taxpayer in India to apply for PAN card. Previously the PAN card application process used to be offline; however, now the option of the online application process is also available.

Who Issues PAN?

PAN card is issued by the Income Tax Department of the country with the help of authorized PAN agencies like National Securities Depository Limited (NSDL) or UTIISL. Both these agencies are authorized by the Government of India to issue PAN and to make changes or corrections in PAN.

Who are eligible to get a PAN Card?

The following taxpaying entities need to have a Permanent Account Number:

• A person who has paid tax or is liable to pay tax to the Income Tax Department has to apply for a PAN card.
• Any person with a business turnover of more than Rs 5 lakh in any year of assessment.
• Trusts, charitable organizations, and associations.
• All tax-paying entities, including individuals, HUFs, the body of individuals, trusts, and others, should apply for PAN.

Online Procedure to Apply For PAN

• The first step in the online procedure of PAN application is to visit either of the two websites, i.e. UTIISL website or TIN NSDL and then click on the option of ‘New Pan’.
• The second step is to choose the Form 49A which is available for the Indian citizens.
• In the third step, the applicant is required to fill in his basic details. These details include the full name of the applicant, address of the applicant, birth date, gender, telephone no. and details of the income of the individual.
• After filling in the necessary details, the applicant needs to submit the form and pay a small amount of money as a processing fee.
• Once the processing fee is paid, the applicant needs to print the form along with a 15 digit acknowledgment number.
• The next step is put in the signature in the space given.
• After the completion of the above-given steps, the applicant is supposed to attach various documents on the 15 digit acknowledgment provided. The applicant should send the documents to the office of NSDL by post within the next 15 days after applying online.
• If the above-given steps are followed correctly, the applicant shall receive the PAN card through the post within the next 15 working days.

Following documents should be sent to NSDL

• Passport size photograph of the applicant.
• Identity proof.
• Address proof of the applicant.
• Demand Draft, when the applicant wants to pay through DD.

If the applicant is not able to apply online, he should not worry much as the government also provides the option of the offline application.

Offline Procedure to Apply For PAN

• If an applicant opts for offline application of PAN card, two options are available to him. Firstly, the applicant can apply by downloading the PAN card application form, from the websites of NSDL or UTIISL. Secondly, the applicant can also apply by procuring the application form, from various available agents of UTIISL.
• The second step is to fill in all the desired details, along with several required documents. The documents required to be submitted as follows:
• Photograph of the applicant.
• Identity proof of the applicant.
• Address proof of the PAN applicant.
• After following the above-given steps, the applicant needs to submit the form along with the required documents to the office of NSDL.
• Further, the PAN card applicant has to make a nominal amount of payment after the submission of the form as a processing fee of the application.
• Once the procedure mentioned above is followed correctly, the applicant shall receive the PAN card within 15 working days post the submission of the form.

Points to Remember While Applying For the PAN Card

Although the application process of the PAN card is very easy with both online and offline options available. However, certain guidelines need to be followed to avoid the rejection of the application form. These guidelines are as follows:

• The details mentioned by the applicant in the address proof and identity card should be the same.
• The applicant should fill the address and contact details correctly.
• The application form (Form 49A) should be filled in capital letters.
• The application should not have any overwriting and rectifications.
• The applicant should not use the thumb impression of either Notary or the Magistrate. If done so the application form will be immediately rejected.

Types of PAN Card

PAN card is issued by the Income Tax Department of the country to various tax-paying entities. The different types of PAN allotted by the IT department are as follows:

• PAN Card for Indian individuals
• For Indian Companies
• PAN for Foreign citizens
• PAN for Foreign Companies.

Classification of Characters of PAN Card

The first three characters:  The First three characters of PAN Card are a sequence of alphabets between AAA to ZZZ. The selection of these characters is random.

Fourth Character:  The fourth character of the PAN represents the status of the taxpayer. For the majority of PAN holders, the fourth character is the letter “P” which stands for “person”. The other letters which could represent the fourth character are as follows:

• A- Association of Persons (AOP)
• B- Body of Individuals (BOI)
• C- Company
• F- Firm/ Limited Liability Partnership
• G- Government Agency
• H- Hindu Undivided Family
• L- Local Authority
• J- Artificial Judicial Person
• T- Trust

Fifth Character: The fifth character of the PAN Card represents the first letter of the surname or last name of the applicant.

Sixth to Ninth Characters:  The next four characters of the PAN are sequential numbers between 0001 to 9999. The selection of these numbers is entirely random.

Tenth character: The tenth and the last character of the PAN is an alphabetic check digit. This digit is generated by applying a formula to the preceding nine letters and numbers.