PAN application is an easy and hassle-free process. Applications can be made both offline as well as online via the NSDL website. The Income Tax Department has roped in NSDL as well as UTIITSL as the two primary agencies responsible for furnishing PAN in the country. There are district level agencies too which are responsible for accepting PAN applications, processing them and furnishing the PAN to customers. Let us know what are NSDL and UTIITSL and the kind of work that they do.
Entities which can apply for PAN
There is a host of entities which can apply for PAN or request for correction/reprint of PAN card. These include individuals, HUFs, trusts, corporates, organizations, firms, local authorities, governments, minors, senior citizens etc.
Application for new PAN for Indian citizens
When an Indian citizen needs to pay taxes or carry out any transaction that mandates the use of PAN information, then he/she is required to apply for a Permanent Account Number. Application process for new PAN consists of two basic parts, first is filling of the application form and second is the dispatch of card by the Income Tax Department.
PAN is also an important identification document and is required for various transactions like bank deposits, mutual fund purchase, insurance purchase etc.
Application for new PAN for foreigners
Online PAN application for foreigners also follows similar guidelines as for resident Indians, however, the application form that needs to be filled and submitted is form 49AA. Foreigners who hold business or financial transactions in the country need to furnish PAN details and hence PAN card becomes an essential document for foreigners in India too. All foreign directors and those who hold business positions as part of Indian subsidiaries are required to have an Indian PAN regardless of their location (in or out of India).
Application for changes/correction/modification/update in PAN card details
There are times when by mistake the details of an entity may get wrongly printed on PAN card or may get wrongly stored in the information database of the Income Tax Department. Any such discrepancy in data can be corrected using the correction and modification option provided by the IT department.
For women in India, there are times when they change their name after marriage and such want a new identity proof to be issued. Such situations too require change in PAN details and as a result a fresh PAN with new card details is issued to the applicant.
The application process for correction of PAN details is similar to the one used to file an application for new PAN. This is so because in either case proofs of address and identity are to be furnished and a new PAN card needs to be issued by the Tax Department.
The details that need correction need to be checked via checkboxes provided against each field.
Application for reprint of PAN card
A case for reprint of PAN arises when an entity loses his/her PAN card. This might happen due to theft, misplacement or any natural calamity. In such situations, an application for reprint of PAN needs to be submitted either with NSDL or with UTIITSL. Reprint of PAN takes your previous PAN card copy or acknowledgement copy as reference and verifies it to issue a fresh PAN card to the applicant. In this case, only the card issued is new while the details on the card are exactly the same as before.
The application form for reprint of PAN card is also the same form 49A. However, since this is a reprint request for an existing PAN, a proof of PAN (PAN card, its copy or copy of PAN acknowledgement letter) needs to be submitted in physical form to NSDL/UTIITSL).
Online application of PAN
With the growing popularity of internet in the country and the associated ease and convenience of online banking, the Indian government is launching online systems for a lot of government services. The online application portal for PAN is hosted by two government authorized agencies NSDL and UTIITSL. Both NSDL and UTIITSL are government agencies that carry out various administration functions apart from processing of PAN requests. Online application is the easiest way to obtain PAN since this can be done from any location and without the hassle of waiting in queues for your turn.
Online application for PAN can be made on the NSDL website as well as the UTIITSL website. Both have been authorized by the government of India to carry out PAN transactions on behalf of the Income Tax Department. Online process is the most hassle free way of obtaining PAN. The PAN applicant is required only to fill and submit the applicable application form along with online payment of the respective processing fee. Copies of required documents can then be sent by post to either NSDL or UTIITSL, for verification purposes.
Offline Application of PAN
Apart from online platforms, the Income Tax Department has authorized PAN centers throughout the country. These centers take care of offline application of PAN. You need to download form 49A or 49AA depending upon the entity and then take a print of the same for offline application of PAN.
There are PAN centers in almost all major cities of the country which take care of offline processing of PAN applications. These centers can be reached directly for applications related to PAN. The offline method of application suits those that do not have access to internet. Rural and remote areas are the ones that generally have low internet connectivity and as such physical procedures for PAN application work best in these places. For people who are not quite well versed with the use of internet, offline mode of PAN application is the only option.
Documents required for application of new/modified/reprint/correction of PAN
Documents required for all kinds of PAN applications basically comprise of those that are for address proof and for identity proof. Apart from these basic documents, proof of existing PAN needs to be furnished in case the applicant is applying for modification or reprint of PAN.
Also, two passport sized photographs need to be affixed to the application form for PAN. In case of online PAN application, copy of acknowledgement letter also needs to be attached with the documents being submitted to the tax department.
How to track status of PAN Application
Almost all entities who apply for PAN want to access latest updates about their PAN application. Status tracking for the same has been provided by both NSDL as well as UTIITSL. The reference number furnished at the end of the application submission process can be used to track the status if your application.
Once you apply for a new PAN or change in PAN details, the system takes around 15-30 days to process your request and send PAN card to your registered address. However, during the waiting period you can track the status of your request by vising any of the NSDL or UTIITSL websites and inputting your acknowledgement number for the PAN application. Any kind of status enquiry related to PAN application is free of cost.
While PAN applications made to the NSDL can be tracked via the acknowledgement number, those made via UTIITSL can be tracked through the coupon number that is furnished by the department.
Status tracking keeps users up to date with the latest information about their application. Status can be tracked only after a certain time has elapsed since the submission of the application form for PAN change or issue.
Fees/Charges applicable for PAN application
Fees levied on PAN application is nominal. Fee varies with the type of application filed with the Income Tax Department. So fees is different for new PAN application and for changes or reprint of PAN. Similarly, fees is more for NRI applicants and foreign applicants as expected to Indian citizens. One reason for this is the fact that a fresh PAN card needs to be dispatched by the department each time a request is made for change or reprint or issuing. Postal handling charges are also, therefore, charged to the applicant.
Application forms for PAN
Applications for new PAN or reprint/correction of PAN can be made using the application forms for the same. These forms can be downloaded or accessed through any of the government authorized websites like NSDL and UTIITSL. Even the main Income Tax Department website too hosts these forms which can be referred by people looking to download or access them.
Difference in PAN application forms for NRI and foreigners
NRIs are non-resident Indians and they need PAN to undertake any tax payment transaction in the country. While foreigners are foreign citizens who hold a business post in an Indian subsidiary and as a result are required to furnish PAN. The PAN application forms for NRIs and foreigners are not the same. However, the forms and application process are the same for NRIs and Indian residents. This is mainly because the documents required and the fee charged is different for foreign citizens while it is the same for Indian citizens and Non-resident Indians.
News About PAN Card Application
New Income Tax Rules
The government has reduced the tax rate instead of raising the income tax limit. The minimum tax rate has been reduced from 10% to 5%. Income between Rs.2.5 lakhs and Rs.5 lakhs per annum will be levied a tax @ 5%.
To avoid duplicity in income tax filing, the government has made it compulsory to have an Aadhaar number to apply for a PAN or file Income Tax Returns.
There is a 10% surcharge on income between Rs.50 lakh and Rs.1 crore. There present surcharge of 15% on income above Rs.1 crore remains unchanged.
Under the amended rules of the Finance Bill 2017, the government has put a daily limit on cash transactions to the tune of Rs.2 lakh.
There are seven new Income Tax Returns forms introduced by the Central Board of Direct Taxes (CBDT). The CBDT has further simplified the ITR-1 Sahaj form for individuals and Hindu Undivided Famalies (HUF).
A rental payment of more than Rs.50,000 will be levied a 5% tax deduction at source.
Tax Commissioners now have sweeping powers. The amended tax rules grant tax officers the power to search a premise, seize assets and make arrests if necessary.
The new tax rules also give tax officers retrospective powers. Tax officers will now be able to reopen tax violation cases up to 10 years old, if an income of Rs.50 lakh or above is found during search and seizure.
There will be no tax on partial withdrawal of funds from the National Pension Scheme (NPS). Individuals who have made savings in NPS can withdraw up to 25% of their savings before retirement.
Property may now fall under the purview of long-term gains if it is held for a minimum of 2 years. The rules earlier stated that the property needed to be held for a minimum of 3 years to fall under the purview of long-term gains.
6th April 2017
Procuring Documents Has Become Much Easier Now
Some of the most important documents that individuals must possess are, Aadhaar Card, Voter ID and Pan Card. However, the process to procure these documents has always been quite cumbersome and time consuming. The good news is that, situation is a lot better now as applicants need not visit tehsil or district offices to get these documents.
Applicants can now visit any of the CSCs or Common Services Centers and pay for the form(s). These prices have already been fixed. Customers can procure colour Voter ID, PAN card (fee of Rs.107 is charged) and even their Aadhaar card for the same. Similarly, if applicants wish to procure a Passport, they will have to visit one of these Centers and submit the application form and fee. This Centre will aid the individual in availing an appointment at the Passport office. A fee of Rs.100 is charged for the same.
21st September 2016