The PAN (Permanent Account Number) card is an important document for conducting even the most simplest of financial transactions like opening a savings bank account or applying for a debit/credit card.
It is a 10-digit alphanumeric identity allotted by the income tax department to an individual, company, Firm, Hindu Undivided Family (HUF), AOP, or any other person.
These days you can apply for PAN online, albeit partially. This is because once all the steps have been completed, you still have to send the acknowledgment receipt to National Securities Depository (NSDL) or UTI Infrastructure Technology and Services Limited (UTIITSL) - agencies authorised by the income tax department to facilitate PAN applications on its behalf.
PAN card become a primary documents for many things like, opening a bank account, Buy/Sale of Immovable Property, Investment, Loans, Credit Card, Buy/Sale of Motor Vehicle etc. and in many cases PAN card is accepted as ID proof of individual.
PAN is mandatory to file your Income Tax Return and if your are providing services to client and client deducted TDS from the payment proceeds, here you need to furning your PAN to avoid higher deduction of 20%.
NON-PAN holder get TDS deduction at higher flat rate 20%. Rule 114B of the Income Tax Rule - mention list of transactions and activities wherein PAN is mandatory to quote
Indian Individual, Company, LLP, Firm , Association, Trust, etc
Rs. 500
Indian Individual, Company, LLP, Firm , Association, Trust, etc
Rs. 500
Non-Resident, Foreign Company and all others not belongs to India
Rs. 3000
Non-Resident, Foreign Company and all others not belongs to India
Rs. 3000
Sale/Purchase of Immovable Property
Amount Exceeding Rs 10 lakhs or valued by stamp valuation authority referred to in section 50C of the Income Tax Act at an amount exceeding Rs 10 Lakhs |
Motor vehicle (other than two wheeler)
All Such Transactions |
Time deposit
a) Deposits with Co-op banks, Post Office, Nidhi, NBFC companies will also need PAN. b) Deposits aggregating to more than Rs.5 lakh during the year will also need PAN. |
Sale or purchase of securities
Contract for sale/purchase of a value exceeding Rs.1 lakh |
Opening an account (other than time deposit) with a banking company.
a) Basic Savings Bank Deposit Account excluded (no PAN requirement for opening these accounts). b) Co-operative banks also to comply |
Hotel/restaurant bill(s) payment
Cash payment exceeding Rs.50,000/-. |
Cash deposit in Bank
Cash deposit exceeding Rs.50,000/- in a day. |
Foreign travel
Cash payment in connection with foreign travel or purchase of foreign currency of an amount exceeding Rs.50,000/- at any one time (including fare, payment to travel agent) |
Credit card
Application to banking company/ any other company/institution for credit card. Co-operative banks also to comply. |
Mutual fund units
Payment exceeding Rs.50,000/- to a company/ institution for acquiring its debentures/ bonds. |
RBI bonds
Payment exceeding Rs.50,000/-. |
Life insurance premium
Payment exceeding Rs.50,000/- in a year. |
Purchases or sales of goods or services
Purchase/ sale of any goods or services exceeding Rs.2 lakh per transaction. |
Cash cards/ prepaid instruments issued under Payment & Settlement Act
Cash payment aggregating to more than Rs.50,000 in a year. |
Purchase of Bank Drafts/Pay Order/ Bankers Cheque
Payment in cash for an amount exceeding Rs 50,000 in a day to any bank/cooperative bank |
Opening a Demate Account
All such transactions |
Choose the Service Authority
There two Service providers in India 1) NSDL and 2) UTIITSL - Choose anyone |
Visit Website of Service Authority
For Example You choose NSDL. Visit https://tin-nsdl.com Click on Apply for PAN Online. |
Choose Filing Type
Digital Signature based or Other than Digital Signature based ( self Signed Application/Esign aadhar based) |
Prepare Application Form online
Choose Application type - New or Correction Choose Category of Applicant - Individual/ Company/Firm, Etc. STARTS Filing up details one by one and choose Income Tax Ward/Circle properly. |
Pay Fees
After completing the Application form next step to pay the fee online ( if DSC/Aadhar Esign) or by DD/Cheque for Physical submission with self signed |
Submit
After Fee Payment online Acknowledgement Copy / Application form generates. This Copy need to be send with NSDL, Pune Office in case of self signed along with Supporting documents and Fee( if payable by DD/Cheque) |
For Individual Applicant
For Indian Company / LLP Registered in India - Only Certificate of Incorporation
For Firm - Registration Certificate Issued by Registrar of Firm or Partnership Deed copy.
For Association of Person (AOP) or Body of Individual (BOI) or Artificial Juducial Person (AJP)
For Trust (AOP)
For Hindu Undivided Family
Documents same as in case of Individual Applicant . Only one more additional documents can be addred 'A copy of Affidavit by Karta of HUF stating name, father name, and address of all coparceners'
For Individual Applicant
ID Proof Documents :-
Address Proof Documents :-
For Companies / LLP/ Firm
As ID and Address Proof :-