PAN (Permanent Account Number)

What is PAN?

PAN can be expanded as Permanent Account Number. This is a 10-digit unique ID which consists of letters and numbers. The income tax department issues PAN this number to the people who have to pay taxes. Information related to tax-related transactions is recorded through this number. The types of transactions that are recorded in a database include −

• Tax collected at source (TCS

• Tax deducted at source (TDS) credits

• Income tax payments

• Return on investments

• Return on gifts

• Return on wealth

PAN Card

A PAN Card is issued to each individual by the tax department. This card consists of the name of the taxpayer, date of birth, photograph, etc. The PAN number consists of 5 letters followed by 4 numbers and then one letter again. The first three letters are alphabetic series which are in the range between AAA and ZZZ. The fourth letter denotes the status of the cardholder. These statuses are as follows −

Letter	Cardholder type	Documents needed to get a Pan Card
A	Association of Persons (AOP)	Registration certificate
C	Company	Registration certificate issued by the registrar of the firm or a copy of the partnership deed
F	Firm	Registration certificate issued by the registrar of the firm or a copy of the partnership deed
H	HUF (Hindu Undivided Family)	The head has to provide his or her identity proof, address proof, father's name, addresses of all the family members, and affidavit with all the details
L	Local Authority	Copy of the agreement
J	Artificial Juridical Person	Registration certificate or government identity along with address proof
P	Individual or Person	Identity proof, date of birth proof, address proof
T	Trust (AOP)	Certificate of registration number that Charity Commissioner has issued along with Trust Deed

The first character is the first letter of the last name of the cardholder. The next four characters are digits which range between 0001 and 9999. The last letter is an alphabet between A and Z.

Benefits of PAN

There are many benefits of having a PAN and some of them are available −

• Purchasing or selling a vehicle

• Opening a new bank account

• Opening a demat account

• Payment made to a hotel, mutual fund, RBI, or company that exceeds 50,000

• Applying for a debit or credit card

• Applying for a loan

• Property buying and selling if the amount exceeds 5 lakhs

• Jewellery purchase if the amount exceeds 5 lakhs

• Post office deposits that exceed 50,000

How to Apply for a PAN?

You can apply for a PAN online and offline. Here are the steps for both methods.

Applying online through the NSDL website

Here are the steps that you have to take to apply for a PAN through the NSDL website.

• Select the PAN card application.

• Fill out the form as per the instructions given.

• The required fee has to be paid and this fee depends on the type of PAN that you want to apply for. Payment of the fee can be done through various modes like debit card, credit card, net banking, demand draft, etc

• The acknowledgment will be sent to your email.

• The required documents have to be sent to the NSDL office in Pune.

• When the documents are received, NSDL will process the PAN application

• After the completion of the verification of documents, a PAN will be issued and dispatched within 15 days

Applying online through UTIITSL website

Here are the steps that you have to follow while applying for a PAN card through the UTIITSL website −

• The application form available on the website has to be filled

• The application fee has to be paid and its acknowledgment will be sent to your email ID

• The required documents should be sent by courier. The documents must be submitted within 15 days of filling out the form.

• The PAN card will be issued within 15 days after the completion of the verification of documents.

Applying Offline

Here are the steps that you have to follow while applying offline for a PAN card −

• Form 49A should be downloaded from the NSDL website and fill out the details as per the instructions

• A signature and a photograph should be attached to the application

• The form along with the required documents should be submitted at the nearest PAN center

• The fee should be paid

• An acknowledgment number will be given which can be used for tracking the status of the application.

• The PAN card will be delivered within 15 days after verification of the documents.

Fees

Fees have to be paid on the basis of the mode of submitting PAN card applications and documents. The table below will show the details −

Mode of application and document submission	Particulars	Fees (taxes included)
Physical mode for physical dispatch	Physical PAN card dispatched in India	107
	Physical PAN card dispatched outside India	1017
Paperless mode for physical dispatch	Physical PAN card dispatched in India	101
	Physical PAN card dispatched outside India	1011
Physical mode for e-PAN card	e-PAN card dispatched at email id	72
paperless mode for e-PAN	e-PAN card dispatched at email id	66

Steps to Make Corrections or update a PAN Card

The steps are almost similar to applying for a new card and they are mentioned below −

• Fill out the application form with changes and updates.

• Pay the application fee through a debit card, credit card, net banking, or demand draft.

• Submit the required document through courier or post to NSDL after the acceptance of the application. Documents should include the changes to be made to the PAN Card. The following documents will be accepted −

  • Married women have to submit a marriage certificate, marriage invitation card, name change publication in a gazette, a certificate issued by a gazetted officer regarding the name change, passport copy which includes the husband's name

  • Individuals excluding married ladies have to submit name change publication in a gazette, a certificate issued by a gazetted officer regarding the name change

  • For companies, ROC's certificate has to be submitted

  • For partnership firms Partnership Deed revised copy has to be submitted

  • For other categories, the documents needed can be revised deed/agreement/registration

Difference between PAN, TAN, and TIN

PAN Card includes a 10-digit alphanumeric code which the income tax department issues to every taxpayer. This is a compulsory card which is required for economic activities that can go beyond a certain financial limit.

TAN stands for Tax deduction and collection account number. It is a 10-digit alphanumeric code which is related to the deduction and collection of tax.

TIN can be expanded as a Taxpayer Identification number and it is an 11-digit numeric code. The card has to be held by traders and dealers whose transactions include VAT. This card is also known as the Sales tax number or VAT number.

Conclusion

PAN is a number that is assigned to taxpayers in the form of a card by the Income Tax Department. The card consists of a code of 10 alphanumeric characters. The PAN is used by the tax department to know about the transactions done by an individual or a company.

FAQs

FAQ 1: What is the full form of PAN?

Ans: The full form of PAN is the Permanent Account Number.

FAQ 2: Can we update or correct the data on the PAN card?

Ans: Yes! We can correct and update the data on the PAN card. You have to fill out Form 49A and submit supported documents so that the changes can be made.

FAQ 3: Who provides the PAN card?

Ans: The Income Tax Department provides the PAN card after the documents are verified. After document verification, you will receive your PAN card within 15 days.

FAQ 4: Can we also apply for e-PAN?

Ans: Yes! You can apply for an e-PAN on the NSDL or UTIITSL website by filling out the form and submitting the required documents.

FAQ 5: For what can a PAN be used?

Ans: A PAN can be used for purchasing vehicles, purchasing property, opening a new bank account, and a lot more.