PAN is also issued to foreign nationals (such as investors) subject to a valid visa, and hence a PAN card is not acceptable as proof of Indian citizenship. A PAN is necessary for filing income tax returns.
A PAN number helps the authorities keep track of the financial activities of any individual, as PAN is integral to all forms of payments. A PAN number is allotted through a laminated card, which is called a PAN card. A PAN card contains information like PAN number, Name, DOB, and address.
Structure of PAN Card
A PAN card contains important information such as name, father’s name, date of birth, address, signature, photograph, and PAN number. However, there is a particular format followed in allotment of a PAN number.
The PAN card number is a ten-digit alphanumeric figure; thus, it contains both numbers and alphabets. The first three letters of the ten-digit are alphabets; the fourth letter represents the category under which the taxpayer is categorized. For instance, the letter P is allocated to individual taxpayers, F to firms, C to companies, and L to the local authority. Further, the fifth letter is the initial of the card holder’s surname. Out of the remaining five letters, the first four are numerics, while the last letter is an alphabet.
Online procedure for PAN card – Step by Step
The government has made provisions for applicants to apply for PAN through the Income Tax PAN Services Unit of NSDL. Follow these easy steps to apply for a PAN online:
- Step 1: Open the NSDL site (https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html) to apply for a new PAN.
- Step 2: Select the Application type – New PAN for Indian citizens, foreign citizens or for change/correction in existing PAN data.
- Step 3: Select your category – individual, associations of persons, a body of individuals, etc.
- Step 4: Fill in all the required details like name, date of birth, email address and your mobile number in the PAN form.
- Step 5: On submitting the form, you will get a message regarding the next step.
- Step 6: Click on the “Continue with the PAN Application Form” button.
- Step 7: You will be redirected to the new page where you have to submit your digital e-KYC.
- Step 8: Select whether you need physical PAN card or not and provide the last four digits of your Aadhaar number.
- Step 9: Enter your personal details, contact and other details in the next part of the form
- Step 10: Enter your area code, AO Type and other details in this part of the form. You can also find these details in the tab below
- Step 11: The last part of the form is the document submission and declaration.
- Step 12: Enter the first 8 digits of your PAN card to submit the application. You will get to see your completed form. Click Proceed if no modification is required.
- Step 13: Select the e-KYC option to verify using Aadhaar OTP. For Proof of Identity, Address and Date of Birth, select Aadhaar in all fields and click on Proceed to continue.
- Step 14: You will be redirected to the payment section where you have to make payment either through demand draft or through net banking/debit/credit card.
- Step 15: A payment receipt will be generated on successful payment. Click on Continue.
- Step 16: Now for Aadhaar Authentication, tick the declaration and select “Authenticate” option.
- Step 17: Click on “Continue with e-KYC” after which an OTP will be sent to the mobile number linked with Aadhaar.
- Step 18: Enter the OTP and submit the form.
- Step 19: Now click on “Continue with e-Sign” after which you will have to enter your 12-digit Aadhaar number. An OTP will be sent to the mobile number linked with Aadhaar.
- Step 20: Enter OTP and submit the application to get the Acknowledgement slip in pdf having your date of birth as the password in DDMMYYYY format.
Uses of PAN
The primary purpose of the PAN is to bring a universal identification to all financial transactions and to prevent tax evasion by keeping track of monetary transactions, especially those of high-net-worth individuals who can impact the economy.
Quoting the PAN is mandatory when filing income tax returns, tax deduction at source, or any other communication with the Income Tax Department. PAN is also steadily becoming a mandatory document for opening a new bank account, a demat account, a new landline telephone connection / a mobile phone connection, purchase of foreign currency, bank deposits above ₹50,000, purchase and sale of immovable properties, vehicles etc.
Qus:-What are the fees for correction in a PAN card?
A PAN card fee for correction or for issuing a new card is ₹ 93, along with GST.
Qus:-How can I change my name in a PAN card?
In order to change details in a PAN card, you can visit the online portal for PAN card and select the ‘Changes or Correction in the existing PAN card’ option under the ‘Application Type’ button. PAN card name change or address change can be done easily through the online portal. You can even change the name in the PAN card as per Aadhar.
Qus:-How can I correct my PAN card?
A PAN card update online can be done through the ‘Update PAN/Aadhar Details’ option on the e-portal of the Income-tax department or through the official website of NSDL.
Qus:-How to Track PAN Applications and Transactions?
The Government has now enabled tracking of financial transactions through PAN numbers. This has been done through the Income Tax Business Application (ITBA) software. Applications and transactions can be traced on the PAN card official website or NDSL website by choosing the ‘Transaction status’ page and entering the transaction number and other details.
Qus:-What is the process for PAN Card Correction Online?
PAN Card details can be updated online through the following means:
- Visit the NSDL website.
- Choose the option ‘Changes or Correction in the existing PAN card’ option under the ‘Application Type’ button.
- Fill in the PAN card correction form.
- Similar to a new PAN card form, the correction of PAN details require the submission of documents such as Identity and Address proofs.