Frequently Asked Questions About PAN Cards

PAN Cards are critical identity proof documents in India. While the significance of PAN Cards is felt each time you try to open a bank account or purchase mutual fund units, many people are unclear about certain aspects of PAN. The following article sums up the chief FAQs surrounding PAN Cards to help offer a comprehensive overview on this crucial document.

Top 10 FAQs on PAN Cards

Question 1: What is PAN

The abbreviation PAN stands for Permanent Account Number. This ten-digit alphanumeric number is issued by the Indian Income Tax Department to identify taxpayers and streamline tax and transaction tracking.

Question 2: What is the eligibility for a PAN Card

Existing taxpayers or any person who is required to file return of income, even on behalf of others must mandatorily obtain a PAN Card. Similarly, any person who intends to do financial transactions where PAN quoting is mandatory must apply for PAN. Business entities whose total sale, turnover, or gross receipts are likely to exceed Rs. 5 Lakhs in any previous year.

Question 3: What are some financial transactions where PAN quoting is mandatory

Here's a list of a few financial transaction where you must quote the unique number outlined in your PAN Card:

• Purchase/sale of motor vehicles, other than two-wheelers.
• Opening a bank account.
• Booking a fixed deposit with a bank or NBFC that exceeds Rs. 50,000/aggregates to Rs. 5 Lakhs in a year.
• Making new debit/credit card applications.
• Paying insurance premiums that aggregate to over Rs. 50,000 in a fiscal year.
• Opening a Demat account to trade in the securities market.

Other than that, you may also be required to provide PAN details for sales/purchase of goods from online marketplaces and offline stores if the transaction value exceeds Rs. 2 Lakhs.

Question 4: How to apply for a PAN Card online

You can apply for a PAN Card online through the Protean (formerly NSDL) portal, UTIITSL website, or the e-filing portal (e-PAN). You must fill the relevant PAN application form (Form 49A for Indian citizens and Form 49AA for foreign citizens), submit the required documents, and pay the applicable fee to complete the application process.

Question 5: Can I apply for a PAN Card offline

Yes. You can download and fill the relevant PAN application form and submit the same along with relevant documents to the nearest PAN service centre.

Question 6: What are the supporting documents needed for a PAN Card application

You can identify the documents required for PAN application based on which applicant category you fall under:

• Individuals: Proof of identity, date of birth, and address.
• HUFs: Affidavit from the karta of the HUF along with proof of identity and proof of address.
• Company/LLP: Certificate of registration.
• Partnership firm: Certificate of registration or partnership deed.
• Trust: Copy of the trust deed or certificate of registration number.
• Foreigners: Identity and address proof in the form of OCI/POI card, passport, copy of bank account statement in the home county, or any other relevant document.

Question 7: Is a PAN Card required for foreigners and NRIs

Foreigners must apply for a PAN Card if they conduct financial transactions in India or reside in the country. A PAN Card is not mandatory for NRIs, if the individual does not derive income from India like rental income or dividend from stocks. However, a PAN Card becomes mandatory if the NRI wishes to trade in securities, invest in mutual funds, or purchase land or property in India.

Question 8: What is the application fee for a PAN Card

PAN Card application fees vary depending on the type of PAN Card you need (digital/physical), mode of document submission, and the dispatch location. Here's the comprehensive cost break-down:

• Physical PAN and paperless document submission: Rs. 101 (in India)/Rs. 1,017 (outside India)
• e-PAN and paperless document submission: Rs. 66 (same for India and abroad)
• Physical PAN and physical document submission: Rs. 107 (in India)/Rs. 1,011 (outside India)
• e-PAN and physical document submission: Rs. 72 (same for India and abroad)

Question 9: How long does it take to get a PAN Card

If you apply through the Protean or UTIITSL websites, it can take up to 15-20 days for your PAN application to be processed and PAN to be generated. However, if you apply for an e-PAN through the IT Department's e-filing platform, you can receive your PAN in just 10 minutes.

Question 10: How can I check the status of my PAN Card

You can track your PAN Card application status online through the Protean (formerly NSDL) website using your acknowledgement number. You can also check your application status with the coupon number on the UTIITSL websites. Alternatively, you can message NSDL space your 15-digit acknowledgement number to 57575 or call the TIN call centre at 020-27218080/08069708080. Remember, your PAN status is generally updated 5 days after acknowledgement/coupon generation.

Conclusion

The frequently asked questions listed above help offer a comprehensive understanding of PAN Cards and why they are important. These questions also shed light on the application process, documents required, fees payable, and waiting times to ensure you have all the insights needed to apply for a PAN at the earliest.

(Disclaimer: Devdiscourse's journalists were not involved in the production of this article. The facts and opinions appearing in the article do not reflect the views of Devdiscourse and Devdiscourse does not claim any responsibility for the same.)