Why PAN Card is Required?

Purpose of having PAN card

The purpose of having a pan card is strengthened from the fact that from 1 January 2005 it has been made mandatory to quote Permanent Account Number (PAN) on challans for any payments due to Income Tax Department (ITD), while filing returns of income and all correspondence with any income tax authority. Thus Purpose of having Pan Card has become mandatory.

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Benefits of PAN card

One of the benefits of pan card is eligibility of an individual or entity to enter into transactions of sale or purchase of assets as mentioned below:

1. PAN is required to be quoted in the deed made during sale or purchase of any immovable property valued at five laksh rupees or more.
2. Copy of PAN is required during Sale or purchase of a motor vehicles having more than two wheels excluding detachable side-car attached to the two wheeler. 

Benefits of PAN card also extends to various banking transactions as below:

1. PAN is required for opening a bank account in both private and nationalized banks.
2. Banks, private or nationalized, emphasize on importance of PAN to entertain Time Deposit exceeding fifty thousand rupees.
3. PAN is also required while making payment in cash for purchase of bank drafts or pay orders or banker's cheques for an amount aggregating to fifty thousand rupees or more during any one day.
4. Deposit in cash aggregating to fifty thousand rupees or more with a bank during any one day requires PAN.

Importance of PAN is emphasized during transactions involving other financial instruments as follows:

1. Deposit, exceeding fifty thousand rupees, in any account with Post Office Savings Bank.
2. Contract of a value exceeding one laksh rupees for sale or purchase of securities.

Certain Service providers also emphasize on the importance of PAN

1. Making an application for installation of a telephone connection (including a cellular telephone connection) requires a PAN.
2. PAN is required when payment to hotels and restaurants against their bills for an amount exceeding twenty-five thousand rupees at any one time is made.
3. Payment in cash in connection with travel to any foreign country of an amount exceeding twenty-five thousand rupees at any one time also requires PAN.

Advantage of PAN

Advantage of PAN includes deduction of fraudulent transactions, reduce tax evasion, transparency in transactions between buyer and seller.

Can minor apply for a PAN card ?

Section 160 of IT Act, 1961 provides that a non-resident, minor, lunatic, idiot, and court of wards and such other persons may be represented through a Representative Assessee. In such cases, application for PAN will be made by the Representative Assessee.

How to Apply New PAN Card

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Please note that one should apply for new Pan Card when the applicant is a resident Indian citizen, and has never applied for a Permanent Account Number (PAN) or does not have a PAN allotted to him. Should you have any doubts, refer article Who should apply for a PAN card ? for more details before you read further.

What is form 49A?

Form 49A is a Application for Allotment of Permanent Account Number in case of Indian Citizen/ Indian Companies/Entities incorporated in India/Unincorporated entities formed in India. To apply PAN card online, click here to fill the online application form.

What are the procedures involved in applying for a new PAN card?

Fill – Fill the online application form – form 49A
Pay – Make Payment online
Sign – Download the prefilled application and affix photos and signature.
Send – Send the signed application and supporting documents by post or courier to the address provided in the welcome mail.

What documents will serve as proof of identity in case of individual applicants, including minors for new PAN application using form 49A?

Following documents are accepted as proof of identity:

1. Elector's Photo Identity Card
2. Driving License
3. Passport
4. Ration Card having photograph of the applicant
5. Certificate of Identity in original signed by a Gazetted Officer
6. Certificate of Identity in original signed by a Member of Parliament
7. Certificate of Identity in original signed by a Member of Legislative Assembly
8. Certificate of Identity in original signed by a Municipal Councilor
9. Arm's License
10. AADHAAR Card issued by the Unique Identification Authority of India
11. Photo Identity Card issued by the Central Government or a State Government or a Public Sector Undertaking
12. Pensioner Card having photograph of the applicant
13. Central Government Health Scheme Card
14. Ex-servicemen Contributory Heath Scheme photo card
15. Bank Certificate in original on letter head from the branch

What documents will serve as proof of address for individual applicants, including minors for new PAN application using form 49A?

Following documents are accepted as proof of address:

1. Elector's Photo Identity Card
2. Driving License
3. Passport
4. Bank Account Statement
5. Credit Card Statement
6. Landline Telephone or Broadband Connection Bill
7. Employer Certificate in original
8. Electricity Bill
9. Depository Account Statement
10. Latest Property Tax Assessment Order
11. Certificate of Address in original signed by a Gazetted Officer
12. Certificate of Address in original signed by a Member of Parliament
13. Certificate of Address in original signed by a Member of Legislative Assembly
14. Certificate of Address in original signed by a Municipal Councilor
15. Water Bill
16. Consumer gas connection card or book or piped gas bill
17. Passport of the Spouse
18. Post Office Passbook having address of the applicant
19. Domicile Certificate issued by the Government
20. AADHAAR Card issued by the Unique Identification Authority of India
21. Allotment Letter of Accommodation issued by the Central Government or State Government
22. Property Registration document

What documents will serve as proof of date of birth for individual applicants, including minors for new PAN application using form 49A?

Following Documents are accepted as proof of date of birth:

1. Birth Certificate
2. Pension Payment Order
3. Marriage Certificate issued by Registrar of Marriages
4. Matriculation Certificate
5. Domicile Certificate issued by the Government
6. Affidavit sworn before a Magistrate stating the date of birth
7. Driving License
8. Passport

Who should apply for a change or correction in PAN card ?

One should make an application when he/she wants to make some changes or corrections in their existing PAN details such as 
Change in applicant name, on account of marriage or due to spelling mistake
Change in father's name
Change in date of birth

Who should apply for a duplicate PAN card ?

One should apply for a duplicate Pan card when a Permanent Account Number (PAN) has already been allotted to the applicant but he/she requires a new duplicate Pan Card due to the following reason:
Lost the Pan Card
Damaged the Pan Card
Wants to change from old to new tamper proof PAN card.

Can a person obtain or use more than one PAN?

Obtaining or possessing more than one (Permanent Account Number) PAN is against the law.

How will the new PAN card be delivered to me?

The Pancard proccessing authorities to whome the application is submitted will ensure delivery of new PAN card at the address indicated by you in the application Form.