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.
How to apply for a PAN card in India
In recent time, PAN or permanent account number has proved to be one of the most recognized identity proof in India. It is a unique 10-digit alphanumeric identity that is assigned to each taxpayer in the country by the Income Tax Department. The department does this under the supervision of the Central Board of Direct Taxes. It is compulsory for every tax payer to have a PAN card for making financial transaction like receiving salary or professional fees that is taxable, purchase or sale of assets above the fixed limits, buying of mutual funds, among others. The main aim of PAN is to use a universal identification key to keep note of all the financial transactions that might have a taxable element to avoid evasion of tax. PAN remains the same irrespective of a change in address.
How to apply for a PAN card online?
With the evolution of internet, gathering information about anything and everything has been just a click away. Similarly, one can apply for a PAN card online through few simple steps. Applicants can visit www.onlineservices.nsdl.com to apply for a PAN card online. Once they are on the site, they can follow the steps that are mentioned below to apply for a PAN card online and submit it:
- Click on the top tab 'Apply New PAN Card' on the top left-hand side of the page.
- Once the applicant clicks on it, an application form will appear on the screen.
- The following details need to be furnished on the form:
- Application Type
- Category (The applicant needs to choose between individual/association of persons/body of individuals/company/trust/limited liability partnership/firm/government/Hindu undivided family/artificial juridical person/local authority)
- Last Name, First Name, and Middle Name
- Date of Birth
- Email ID
- Mobile Number
Once these details have been filled in, the applicant can submit the form. The applicant will receive a 15-digit acknowledgement number. The applicant must save and print the acknowledgement page.
How to apply for a PAN card offline?
To apply for a PAN card offline, the applicant should follow the steps mentioned below:
- The applicant needs to download 49A form from the official NSDL site.
- The next step is to pay the fee and a demand draft in favour of NDSL-PAN and send it to Income Tax PAN Services Unit, NDSL e-Governance Infrastructure Limited, 5th Floor, Mantri Sterling, Plot Number 341, Survey Number 997/8, Model Colony, Near Deep Bungalow Chowk, Pune-411016.
- The applicant should fill the form, attach a photograph along with an ID and address proof, and send it to the above mentioned address.
- The applicant should mention-APPLICATION FOR PAN and the acknowledgement number on the envelope.
How to apply for a new PAN card if one has lost the old one?
Since PAN card is an essential document that is not only used for filing tax returns but as an identity proof as well, it is obvious that people fret easily once they lose it. In case of a lost PAN card, individuals can apply for a new one online. To apply for a new card with the same PAN, the applicant will need to know their original PAN. In case they don't remember it, they can visit incometaxindiaefiling.gov.in. After visiting the page, they can go to 'Know Your PAN' option, enter their last, first, and middle name, date of birth, and the captcha code. They will be able to find their old PAN. They can either submit the application online or they can visit their nearest PAN centre and submit the application in person along with supporting documents. To do it online, the applicant needs to follow the steps mentioned below:
- Visit the NSDL website.
- Create a login and upload a soft copy of the following documents:
- ID Proof
- Address Proof
- Date of Birth Proof
- Digital Photo
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).
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
Government gives more time for linking PAN with Aadhaar
A number of individuals were left in a state of panic when the government announced that every citizen of India had to get their PAN Card linked with their Aadhaar Card before the 1st of July. The online portal which was meant to be used for linking a person's PAN with their Aadhaar Card was extremely slow due to high traffic on the site. The government has now given the people a reason to breathe as PAN Cards which have not been linked yet will not immediately become invalid. The government has provided some more time for people to link these two documents. Individuals can even link their cards via SMS by sending "UIDPAN
<12 digit Aadhaar> <10 digit PAN>" to 567678 or 56161.
14th July 2017
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