Everything You Should Know About PAN and e-PAN Card

Permanent Account Number (PAN) card is a 10-digit alphanumeric code assigned to every taxpayer in the country. It is an electronic system that stores tax-related information of a company/person.

The Income Tax Department of India issues a pan card.

What is Eligibility for PAN card?

Under section 139A of the Income Tax Act, the following entities must have a PAN card-

• Any individual who has paid tax or is liable to pay tax (according to income tax slabs)
• Companies that have a yearly turnover of Rs. 5 lakhs in any assessment year
• Importers or Exporters who pay any kind of tax or duties.
• Trusts, charitable organizations and associations.
• Non-Resident Indians or anyone who pays tax in India.
• Any person entering into a financial or economic transaction requires quoting PAN
• A minor will require a PAN card if he/she is a nominee to a property.

What are the types of pan cards in India?

1. Individual
2. Company
3. HUF
4. Partnership/ Firm
5. Trusts
6. Society
7. Foreigners

What are the documents required?

Following are the documents required-

1. For an Individual:
   • Address Proof
   • Identity Proof

2. For a Company:
   • Certificate of Registration issued by Registrar of Companies

3. For a HUF:
   • Affidavit of the HUF
   • Address Proof
   • Identity Proof

4. For a Partnership/ Firm:
   • Certificate of Registration/ Limited Liability Partnerships
   • Partnership Deed

5. For a Trust:
   • Copy of Trust Deed/Certificate of Registration Number

6. For a Society:
   • Certificate of Registration Number from Registrar of Co-operative Society/Charity Commissioner

7. For Foreigners:
   • Passport
   • Address Proof/ OCI card issued by the Indian Government
   • Bank statement of the residential country
   • NRE Bank statement in India

How to apply for a PAN card?

There are 2 ways to apply-

Online method: 

1. Visit website NSDL or UTIITSL
2. Fill form 49A or 49AA (Indian/Foreigners)
3. Submit documents
4. Pay the processing charges.
5. PAN card dispatched.

It usually takes 10-12 working days to receive a PAN card.

Offline method-

1. Authorize form from a pan card centre
2. Submit the filled application form with all the documents
3. Pay the processing fees.
4. Pan Card dispatched.

How to track the status of a PAN card?

To track your pan card, click on track card here.

Read: How To Choose Between Private Limited Company & LLP?

How to edit and update PAN?

PAN can be edited and updated in 2 simple steps-

1. Visit the NSDL website and click on the update PAN option.
2. Then select “correction” in existing Pan information.

What are the do’s and don’ts of Pan card application?

Why is a PAN card necessary?

• All the taxpayers need to provide a pan number for paying income tax.
• It is needed when establishing a business.
• A lot of critical financial transactions require pan information.

Benefits of having a PAN card-

It assists in the following-

• IT Returns Filing
• Identity Proof
• Opening a Bank Account
• Purchase or Sale of Goods and Services
• Bank Drafts, Pay Orders and Banker’s Cheque.

What is an E-PAN card?

E-PAN is a valid proof of PAN. It is a digitally signed PAN card issued in electronic format by the Income Tax Department using Aadhaar e-KYC.

E-PAN has a QR code that possesses demographic details of PAN card holders. E-PAN is available for those PAN holders who have a valid aadhar number and have a mobile number registered with aadhar. The whole process is free and done online. It is also important to note that this service is available for a limited time and it is issued on first- come- first- serve basis.

Who can apply for E-PAN?

You should meet the following criteria to apply for e-pan-

• You shouldn’t have a PAN already.
• You should have an Aadhar card.
• You should be an indian resident.
• You should be an individual taxpayer and not a HUF or a company.
• Your current phone number should be linked to your aadhar card

What are the steps to apply for E-PAN?

1. Click on the link to to apply for new PAN
2. Select either of the 2 options:
   1. Both physical PAN and E-PAN
   2. E-PAN only and not physical card..

The E-PAN will be issued on your email id. And the physical card is delivered to your address.

1. Submit details as per your aadhar card
2. 15 digit acknowledgement number will be sent to your email/phone number.

Don’t have a PAN card?

If your income is eligible to fall under the tax bracket, you must have a pan card and pay taxes.

In case you don’t have one, then 30% of taxes are charged on your income and wealth by the Income Tax Department. This applies to individuals, companies, and other entities responsible for paying taxes in the country.

Conclusion:

Availing a pan card is now a hassle-free process. You can talk to our experts if you have any more doubts!