A Detailed Guide on Pan Card
A Permanent Account Number (PAN) is a ten-character alphanumeric identifier, as a “PAN card” by the Income Tax Department of India, It plays a vital role in the Indian financial system. So let’s discuss a detailed guide on the pan card.
A PAN is a unique identifier issued to all judicial institutions identified under the Indian Income Tax Act, 1961. The Income Tax Act and Section 130A are issued under the Income Tax Act. It is issued by the Income Tax Department of India under the supervision of the Central Board of Direct Taxes (CBDT) and is also an important proof of identity.
How To Apply For Pancard?
PAN can be applied online. In addition, requests for changes or corrections to PAN data can also be made online. How to apply for PAN card online: PAN can be applied online on the NSDL website or UTIITSL website.
Both have been authorized by the Government of India to issue PAN or change/amend the PAN on behalf of the Income Tax Department. The online process is the most hassle-free way to get PAN.
The applicant is only required to fill and submit the online application form along with the online payment of the respective processing fee.
Copies of documents can be sent by post to NSDL or UTIITSL (documents to be submitted online).
Steps to apply for PAN online
Step 1: Submit PAN Card Application which is available on NSDL website: https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html
Step 2: Please read the detailed instructions before submitting the details in the form. https://tin.tin.nsdl.com/pan/Instructions49A.html#instruct_form49A
Step 3: Payment Method:
Fee for PAN card
For Indian citizens: 93 Rs + GST
For foreign communication address: 864 Rs +GST
The Payment can be paid through credit/debit card, demand draft or net-banking. On successful payment, an acknowledgment will be displayed. Save this acknowledgment number.
Step 4: Documents to be sent to NSDL
Once the application and payment are accepted, the applicant is required to send supporting documents to NSDL via courier/post.
You need documents like proof of identity, address proof and proof of date of birth. To know the complete list of documents, click on the complete list of documents.
This is the off-line mode for the people who are unable to complete the Aadhar based e-KYC.
Below is the best way if you can do Aadhar based e-KYC
Apply using Digital Mode :
Step 1: Submit PAN Card Application which is available on UTIITSL website:
Step 2: Select the Aadhaar based e-KYC option (for the individual)
Step 3: Complete the filling required info.
Note: The applicant will get a new Physical PAN Card to their communication address and an e-PAN Card will be sent to the applicant’s e-mail ID.
The story behind Permanent Account Number
The Permanent Account Number has been divided into five groups as:
1) The first three characters are the normal alphabetic series starting from AAA and running up to ZZZ.
2) The fourth character represents the status of the PAN cardholder. Its most important characters in Pan Card number and individuals usually look at this character only to identify your status.
Now the status can be like
C - represents a Company P - represents a Person H - stands for Hindu Undivided Family F - represents a Firm A - stands for Association of Persons T - represents a Trust B - represents Body of Individuals L - stands for Local Authority J - stands for Artificial Juridical Person G - stands for Government
3) The fifth character represents the first character of the PAN holder’s Surname.
For eg- If your name says Modi, then the fifth character of your PAN will be, M.
4) The next four characters are again the normal sequential numbers starting from 0001 and running up to 9999.
5) The last character in the PAN is an alphabetic check digit.
What Is The Importance Of Pancard?
Whether you want to buy a car or property, invest in the stock market or convert your Indian rupee into foreign currency, one thing is that you will need for each of these activities. The answer is a PAN card. The card was issued by individuals and entities to prevent tax evasion because it combines all financial transactions conducted by a particular individual or institution.
Here Are Some usages of PAN card (A Detailed Guide on Pan Card)
IT Return Filing: All individuals and institutions that are eligible for income tax are expected to file IT returns. A PAN card is necessary for filing IT returns, and the primary reason is individuals as well as other units.
Bank account opening: A PAN card is required to open a new bank account, whether it is a savings account or a current account.
Applying for a credit or debit card: When applying for a debit card or credit card at any bank or financial institution, submission of your PAN card details is mandatory by the rules. This is the important criteria for an applicant to be eligible for a card.
Few more use cases :
Purchase of jewelry: If you want to buy any type of jewelry, which costs Rs. 5, 00, 000 and above then you will have to show your PAN card.
Foreign currency exchange: If you are traveling abroad and want to convert your Indian currency to foreign currency, then you are required to provide your PAN details in Money Exchange Bureau / Bank / Institution, where you are converting money.
Loans: If you are required to take a loan, all loan providers, both banks as well as other lending institutions, will have to submit their PAN details at the time of loan application. Any lender will ask you for PAN details are to process all types of loans from education loans to personal loans.
Cash Deposit: If you are depositing cash which is more than Rs. 50, 000 at a time, you will also have to submit your PAN details. This is in line with the RBI mandate, which directs banks to report any large cash deposit to the RBI, to prevent the theft of funds.
I hope you are clear about A Detailed Guide on Pan Card.
You are a rock star now, have a happy investing.
for the disclaimer: Click here