As a citizen of India, you must have heard about PAN, which stands for Permanent Account Number. It is a 10-digit unique alphanumeric number that is issued by the Indian Income Tax Department to individuals, businesses, and entities. In this article, we will cover all the essential information about PAN full form, including its meaning, purpose, application process, and benefits.
What is PAN?
PAN, which stands for Permanent Account Number, is a unique identification number issued to Indian citizens, businesses, and entities by the Indian Income Tax Department.
It is a 10-digit alphanumeric number, and its main purpose is to track financial transactions and tax-related activities.
Why is PAN important?
PAN is essential for conducting financial transactions, opening a bank account, filing income tax returns, and investing in financial instruments such as mutual funds and shares. It is mandatory for all individuals and entities that earn taxable income to obtain a PAN card.
PAN Structure
The structure of a PAN card consists of ten characters, including five alphabets, four numbers, and one alphabet at the end.
The first three characters of a PAN card are alphabets, the fourth character represents the type of entity, and the fifth character is the first letter of the surname or last name of the cardholder.
Types of PAN Cards
There are two types of PAN cards, including the physical PAN card and the e-PAN card. The physical PAN card is a laminated card that is sent to the applicant’s address after successful verification, whereas the e-PAN card is a digitally signed PAN card that is sent to the applicant’s email address.
Eligibility Criteria for PAN
All individuals and entities that earn taxable income are eligible to apply for a PAN card. It is mandatory for individuals who earn more than the threshold limit of taxable income to obtain a PAN card.
Non-residents, minors, and foreign nationals who earn taxable income in India are also eligible to apply for a PAN card.
Documents Required for PAN Application
The documents required for PAN application include proof of identity, proof of address, and proof of date of birth.
The acceptable documents for proof of identity include Aadhaar card, voter ID card, passport, and driving license. The acceptable documents for proof of address include Aadhaar card, electricity bill, telephone bill, and bank statement.
PAN Application Process
The PAN application process can be completed online or offline. To apply for a PAN card online, the applicant needs to visit the official website of NSDL or UTIITSL and fill in the required details.
To apply for a PAN card offline, the applicant needs to obtain Form 49A from any TIN-FC or PAN center, fill in the required details, and submit the form along with the necessary documents.
PAN Application Fees
The PAN application fees vary depending on the mode of application and the category of the applicant. For individuals, the PAN application fee is Rs. 110 for physical PAN card and Rs. 115 for e-PAN card. For entities, the PAN application fee is Rs. 1,020 for physical PAN card and Rs. 1,015 for e-PAN card.
PAN Verification
After submitting the PAN application, it is essential to verify the application to ensure that the information provided is accurate. The verification process can be completed online or offline.
To verify the application online, the applicant needs to visit the official website of NSDL or UTIITSL, enter the application details, and authenticate the information using Aadhaar-based eKYC or digital signature.
To verify the application offline, the applicant needs to submit the PAN application along with the necessary documents at the nearest TIN-FC or PAN center.
How to Check PAN Status
After submitting the PAN application, the applicant can check the status of their application online. To check the PAN status, the applicant needs to visit the official website of NSDL or UTIITSL, enter the application details, and track the application status.
Benefits of Having a PAN Card
Having a PAN card provides several benefits, including:
- Filing income tax returns: A PAN card is necessary for filing income tax returns and paying income tax.
- Opening a bank account: A PAN card is mandatory for opening a bank account, including savings, current, and fixed deposit accounts.
- Applying for loans: A PAN card is necessary for applying for loans, including personal loans, home loans, and business loans.
- Investing in financial instruments: A PAN card is essential for investing in financial instruments, including mutual funds, shares, and bonds.
- Availing government schemes: A PAN card is required for availing several government schemes, including Pradhan Mantri Jan Dhan Yojana, Pradhan Mantri Mudra Yojana, and Atal Pension Yojana.
PAN Card FAQs
- What is the validity of a PAN card?
A PAN card is valid for a lifetime and does not require any renewal.
- Can I have multiple PAN cards?
No, an individual can have only one PAN card, and having multiple PAN cards is illegal.
- Can I apply for a PAN card if I am a foreign national?
Yes, foreign nationals who earn taxable income in India can apply for a PAN card.
- Can I apply for a PAN card without Aadhaar card?
Yes, it is possible to apply for a PAN card without an Aadhaar card by providing other acceptable documents for proof of identity and address.
- How can I update my PAN card details?
To update the PAN card details, the applicant needs to visit the official website of NSDL or UTIITSL, fill in the required details, and submit the necessary documents.
Conclusion
In conclusion, PAN, which stands for Permanent Account Number, is a unique identification number issued by the Indian Income Tax Department to individuals, businesses, and entities.
It is essential for conducting financial transactions, opening a bank account, filing income tax returns, and investing in financial instruments.
The application process for PAN is simple and can be completed online or offline. Having a PAN card provides several benefits, including filing income tax returns, opening a bank account, and investing in financial instruments.
If you are eligible for a PAN card, you should apply for it as soon as possible and enjoy its benefits.