A PAN card is an invaluable resource in India, with everyone involved in trade or business of any kind expected to have it. Every taxpayer in the country should compulsorily have a PAN, with the government levying a penalty on those who indulge in financial transactions without it. Owning a PAN card is not an expensive affair, with the government imposing minimal charges on individuals. These charges are determined based on the address of an individual, with a higher cost for PAN cards which need to be sent outside the country.
Fees and charges for a new PAN Card in India
Applicants residing within the country need to pay a fee of Rs 107, which includes a processing fee of Rs 93 plus service tax to the tune of 14.5%. While there has been discrepancy with regard to the cost of PAN processing in the past, the government has imposed a uniform fee for all applications which have a communication address within the country. This fee, can however vary, depending on the mode of payment an applicant opts for.
Fees and charges for Reprint/changes in PAN Card in India
It is possible for an individual to lose/damage his/her PAN card or find himself/herself in a position where changes or corrections are needed in an existing card. In such cases an individual will have to pay a fee of Rs.107 (processing fee of Rs.93 plus 14.5% service tax). This fee is applicable only if the communication address is within India, with different rates applicable if the communication address is overseas.
Fees for New/reprinted PAN card for individuals residing abroad
A booming Indian economy has attracted a number of foreign players who are keen on carrying out business in the country. A PAN is mandatory for such entities, be it an organisation or an individual and they are required to go through the same process as a resident of India. The government charges a fee of Rs.989 to process and dispatch the PAN to entities with a communication address outside India. This amount can be broken down into three components, an application fee of Rs.93, a dispatch charge of Rs.771 and service tax to the tune of 14.5% on these two elements.
Modes of payment of PAN Charges
The following modes of payments are permitted for PAN, with the communication address of an individual determining what modes are available to him/her.
Communication address within India – Individuals with a communication address within Indian Territory can pay via Credit/Debit cards, Demand Drafts or through Net Banking. One should keep in mind that payment through Debit/Credit cards will attract an additional charge of up to 2% on the application fee, generally charged by the bank. The bank could also impose applicable taxes over and above the fee charged for a PAN. Payment by Demand Drafts are accepted only if the DD is in favor of “NSDL – PAN”, payable at Mumbai. Payment through Net Banking will attract a surcharge of Rs.4 plus service tax, to be borne by an applicant.
Communication address outside India – Individuals or companies with a communication address outside India can pay for the PAN card either through Credit/Debit card or Demand Drafts. The DD should be in favor of “NSDL – PAN”, payable only in Mumbai. Payment by Credit or Debit card will attract additional bank imposed charges to the tune of 2% plus service tax. Additionally, one might also incur conversion or exchange charges imposed by the bank to initiate such payment.
People permitted to make PAN payment on behalf of others
The Government of India permits others to make payment (Credit/Debit card and Net Banking) on behalf of a PAN applicant, depending on who is applying for a PAN card.
Individual applicants – In case of individual applicants, either the applicant himself/herself or his immediate family can pay the application fee.
Hindu Undivided Families – In case of Hindu Undivided Families only the Karta of the said HUF can make payments.
Companies/Firms – Any Director or Partner of a firm can make payment on their behalf.
Trusts/Associations – In the case of trusts, associations, local authorities, etc., payment can be made only by an authorized signatory as per the rules of the Income Tax Act.
Current status of PAN Fee Refund
There are chances for the PAN application of an individual to be rejected, either on grounds of incorrect/incomplete information or failure to adhere to the instructions. In such cases, applicants should remember that there is no provision for a fee refund and that they can reapply for the PAN by correcting the wrong information, using the same payment details.
News About Fees and charges for PAN
Swacch Bharat Cess: PAN Cards Costlier By a Rupee
Swacch Bharat Cess, which came into effect on November 15, 2015, has added a rupee to the cost of the Permanent Account Number (PAN) card. Now you have to pay Rs. 107 for the card instead of Rs. 106. Getting a new PAN sent outside the country will be Rs. 4 more than earlier at Rs. 989.
All taxable services are levied with a 0.5 percent Swacch Bharat Cess now. So the service tax for PAN now stands at 14.5 percent instead of 14 percent. So the charges now applicable on PAN are: Rs. 93 as processing fee, and Rs. 14 as new service tax including the Swacch Bharat Cess.
15th April 2016