What are the different types of PAN Card?
The Permanent Account Number Card or PAN Card is a card-type document that is issued by the Income Tax Department of the Republic of India designed primarily to centralize the tracking, assessing, evaluating, and updating of various tax and tax-related transactions as well as financial and economic activities of a taxpayer in India. Under the taxation system of India, taxpayers are those who are earning an income or receiving remuneration, whether they are locals or foreigners and whether they are individuals or entities. It is for this reason that the PAN Card can have different types.
PAN Card for individuals
Individual taxpayers will need this kind of PAN Card. It is usually applied for by using Form 49A. This type of card can include minors and students as stipulated in the Income Tax Act of 1961.
PAN Card for PIOs and NRIs
Indians who are now residing in other countries and are classified as Persons of Indian Origin or Non-Resident Indians (NRIs) will need this type of PAN Card whenever they are engaged in certain financial transactions in India. According to the Ministry of External Affairs there are now more than 31 million PIOs and NRIs all over the world. To avail of PAN, PIOs and NRIs must also use Form 49A.
PAN Card for NREs and OCIs
This type of PAN Card is geared for Indians who are now working and have obtained citizenship in other countries except Pakistan and Bangladesh. They are called Overseas Citizens of India (OCIs). Indian businesses, companies, or firms that were formed or incorporated in other countries are called Non-Resident Entities (NREs). Both NREs and OCIs are expected to have PANs and they can achieve this by securing Form 49AA.
PAN Card for taxpaying foreign entities
As the name implies, this PAN Card is designed for foreign companies and firms that are duly registered and certified to be incorporated in other countries, and are now engaged in business in India. Foreign entities need Form 49AA to obtain PAN.
PAN Card for local Indian companies
Local Indian businesses, corporate entities, companies, and firms are required to have their PAN to manage their various tax-related, business, and financial transactions.
Who can apply for a PAN?
The Permanent Account Number can be issued to the following Indian citizens.
- Artificial Judicial Persons – Requires government-issued Registration Certificate
- Association of persons – Requires Certificate of Registration
- Companies – Requires Certificate of Registration
- Hindu Undivided Families – The family can be represented by the head of the family
- Individuals – With Indian citizenship
- Individuals who are mentally-incapacitated – Through representatives or caregivers
- Limited Liability Partnerships – Requires Certificate of Registration
- Local authorities – Requires a copy of the agreement
- Minors – Minors who are nominated for a property can be issued with PAN. Making investments in the name of a minor can also be grounds for the application of PAN. However, only the minor’s parents can apply on his or her behalf. The application is accompanied by supporting documents from both minor and his or her parents.
- Non-resident Indians (NRIs) – Requires the NRI’s statement of account issued by a duly recognized bank in present country of residence
- Partnership firms – Requires Certificate of Registration or Partnership Deed
- Trusts – Requires Trust Deed and Certificate of Registration Number
Permanent Account Number can also be applied for by the following foreign individuals and entities.
- Foreign citizens – Requires evidences of one’s identity and residence address
- Foreign entities – Requires Certificate of Registration obtained in India as well as a photocopy of the official Certificate of Registration issued in the country of origin and certified by the Ministry of External Affairs, High Commission, or Indian Embassy
Is it mandatory to obtain a PAN Card?
The Permanent Account Number Card is a must for all entities and individuals who are required by law to file their income returns. Also, all financial, economic, business, and investment transactions that deal with certain provisions of the Income Tax Act of 1961 will require the presence of a PAN Card. The Permanent Account Number is also an absolute requirement in the following transactions.
- Buying cash cards and other prepaid financial instruments duly issued under the Payment & Settlement Act as long as the cash payments accumulate in excess of Rs 50,000/- over a period of one year.
- Buying pay orders, banker’s checks, and bank drafts exceeding Rs 50,000/- for any one day.
- Buying units of mutual fund valued at more than Rs 50,000/-.
- Credit card application with a bank or any other duly authorized credit care institution or organization.
- Depositing in a bank more than Rs 50,000/- in cash in one day.
- Depositing to a Time Deposit Account accumulating to more than Rs 5 Lakh within 12 months.
- Depositing to a Time Deposit Account in NBFC companies, Nidhi, cooperative banks, and the Post Office.
- Foreign travel and related cash expenses exceeding Rs 50,000/- incurred at any one time which can include payment of travel agency fees and transport fares.
- Opening a new account with a bank, except Basic Savings Bank Deposit Account and Time Deposit Account.
- Opening a new demat account.
- Paying more than Rs 50,000/- in life insurance premiums in one year.
- Restaurant or hotel cash expenses exceeding Rs 50,000/-.
- Selling or buying of an immovable property appraised and consummated for Rs 10 Lakh or more.
- Selling or buying of any goods or services exceeding Rs 2 Lakh per transaction.
- Selling or buying of motorized vehicle, except those with two wheels.
- Selling or buying of securities valued at more than Rs 1 Lakh.
- Selling or buying of the shares of an unlisted company valued at more than Rs 1 Lakh per transaction.
How long does it take to get a new PAN Card?
Getting your PAN Card can be quite an experience since the application process itself can only take minutes of your time. Unfortunately, the actual process of verifying and validating all of the submitted documents, its encoding into the central database, and the eventual printing of the card can take anywhere from 15 days to a few more weeks. Generally speaking, you should receive the PAN Card within 15 business days from the date that you receive your confirmation number. A lot of factors can affect the time needed for the processing of the PAN Card. First, the accuracy and validity of all the supporting documents must be ascertained to keep the process going. Second, the accuracy of your residence address is very important as this will help facilitate the faster delivery of your PAN Card.
How can I get a duplicate PAN Card?
Individuals or entities who inadvertently lose their PAN Cards can request for a duplicate or replacement card. To help facilitate the issuance of a duplicate or replacement PAN Card, it is important that you secure a First Information Report (FIR) which will serve as the legal basis for the processing and issuance of another PAN Card as duplicate or replacement. The FIR will be submitted together with other details of your Permanent Account Number to help expedite the processing of the PAN Card replacement.
The procedure for applying for a duplicate PAN Card is as follows.
- Logon to the online portal of your PAN Card service provider.
- Look for the section that says “Reprint of PAN Card”.
- Choose from the Drop-down Menu the type of PAN that you would like to make a duplicate of or replace with.
- On the following window, make sure to fill up all the data that is being asked.
- Once finished, you will be instructed to upload supporting documents. It is best to have these ready even before you logon to the online portal. Be ready with your proofs of identity, residence address, date of birth, and valid photograph.
- You will be instructed to pay the corresponding PAN Card duplicate or replacement fee.
- The system will generate a 15-digit acknowledgement receipt which will serve as reference for your PAN transaction.
- Take note of the date on the acknowledgement receipt and wait for your duplicate or replacement card typically within 2 weeks.
The same procedure can be observed in cases of severely damaged PAN Cards such that a duplicate must be obtained.
The same procedure applies to businesses, trusts, companies, and HUFs that may have a need for additional PAN Cards for other persons in the entity.
How do I apply with pancardapply.in?
Pancardapply.in is an online PAN application service platform designed to make it super-easy for you to secure your very own Permanent Account Number without leaving the convenience and comfort of your home or office. We made sure that the steps to applying for a PAN with pancardapply.in will be hassle-free. Here are the steps.
- Visit Pancardapply at https://www.pancardapply.in
- Select the kind of transaction you want: New PAN card application form, Lost or Damaged PAN Card Application form or Changes to PAN card application form.
- Select the correct PAN application form. For Indian residents, firms, NRIs, companies, or PIOs the correct form is Form 49A. For foreigners, foreign entities, or NREs, the correct form is Form 49AA.
- Completely fill up the information asked on the correct form. It is strongly advised that you have your supporting documents required for the PAN card on hand whenever filling up the forms so that you can ensure the accuracy of the data entries on the PAN application form. Remember that you will also be submitting the electronic copies of these documents so the information you put into the online form should match what is printed on the original documents. Watch out for data fields that are marked by an asterisk sign as these cannot be left blank.
- Before submitting your electronic application form, make sure to review all the information you placed. If you’re satisfied, click ‘Submit’ and wait for the token number that the system will generate as proof of the transaction.
- Another window will open where you can choose your preferred method for the submission of the supporting documents for the PAN application.
- A series of windows will open in an effort to obtain additional information which will be used in the processing of your application.
- The system will require you to upload the supporting documents as well as your photograph.
Can I use more than one PAN card?
One of the problems with the old General Index Register, the predecessor of the PAN, is that a single taxpayer can actually have more than one numerical identifier. The reason why the Permanent Account Number was institutionalized is to prevent such issues from ever occurring again. However, there will always be instances when an individual may have more than one PAN Card although through fault not of their own making.
Read about the history of the PAN card here.
In many instances the application process can run for many weeks that the individual doesn’t have the patience to wait for his PAN Card. As such, he applies for a PAN Card again even while he hasn’t received the first card yet. It is also possible that the individual has relocated to a new place even before he could receive his PAN Card. In such cases, it is clearly not the fault of the individual.
Now, there are also those who purposely get more than one PAN Card in an effort to undermine government efforts of making the taxation system work efficiently. If you get caught on these grounds, you will be dealt with the full extent of the law. Similarly, using more than one PAN Card will earn you a Rs 10,000/- fine and legal notice issued by the government.
What is Form 49A?
Form 49A is the application form that is used by Indian residents to help them secure a Permanent Account Number. This includes Indians who are presently residing in India, Persons of Indian Origin, Non-Resident Indians, and Indian companies.
Why do NRIs need a PAN Card?
The Indian government requires all Non-Resident Indians to have their own PAN Card so that they can complete the following transaction in India.
- Apply for credit cards and debit cards
- Apply for loan or financial assistance
- Apply for passport or visa
- Buy or sell fixed assets or immovable properties
- Deposit or withdraw more than Rs 50,000/- from a bank
- Invest in mutual funds
- Open a new bank account other than Basic Savings Bank Deposit Account
- Open a new demat account
- Receive compensation, remuneration, or income, in the form of salary or professional fee, for service or work provided to others
- Secure remittance of foreign or converted currencies
- Trade at the Indian stock market