Permanent Account Number, popularly known as PAN, is an electronic system through which the information concerning the tax of a particular person or a company is recorded against a single PAN. PAN is unique, and hence, no two tax-paying individuals, companies, or entities can have a single PAN. Let us now look at a few questions concerning the benefits of a PAN card, the application process of PAN, documents required to apply for a PAN, etc.
1. What are the different types of PAN?
The various types of PAN include,
- HUF- Hindu Undivided Family
- Partnerships/ Firms
2. Who issues a PAN?
It is the Income Tax Department, Government of India that issues a PAN.
3. Is a PAN lifetime?
Yes, a PAN’s validity is lifetime.
4. What are the different documents required to apply for a PAN card?
To apply for a PAN, you need to submit two types of documents – Proof of Address (POA), and Proof of Identity (POI).
|Individual||POA/ POI – Passport, voter ID, driving license, Aadhaar|
|Trust||Copy of Trust Deed or that of the Certificate of Registration Number issued by a Charity Commissioner|
|Company (Registered in India)||Registrar of Companies-issued Certification of Registration|
|Hindu Undivided Family||HUF affidavit by the HUF head and the details of POA and POI|
|Society||Certificate of Registration Number from Registrar of Co-operative Society or Charity Commissioner|
|Firms/ Partnerships (LLP)||Certificate of Registration issued by the Registrar of Firms/ Limited Liability Partnerships and Partnership Deed.|
Apart from the above, foreigners also can apply for a PAN card. To do so, they need to submit passport PIO/ OCI issued by the Indian Government, bank statement of the country of residence, and a copy of the NRE bank statement in India.
5. How to apply for a PAN?
You can apply for a PAN through either the online or the offline process. Let us look at how to apply for a PAN online and also the step-by-step process to apply for PAN offline.
Online PAN Application Process
- Go to the website of NSDL or UTIITSL
- Fill in the required form with your details furnished in it
- Submit the necessary documents and pay the processing fee
- After the completion of the process, the authorities will send the PAN to the given address
Offline PAN Application Process
- Visit the authorized PAN center and the get the PAN application form
- Fill in the application form
- Attach the required documents
- Submit the form, along with the processing fee
- After the completion of the process, the authorities will send the PAN to the address you’ve given
6. How much does it cost to apply for a PAN?
The charges for applying for a PAN are INR 93 + GST. So the total cost is INR 110 for an Indian communication address.
7. How to reapply for a PAN in the case of a lost PAN card?
Lost your PAN card, now, what to do? Well, if that happens, do not panic or get hassled. You can apply for a duplicate PAN card online or offline. Follow almost the same process that you did when applying for the PAN card in the first place. Go to the NSDL or UTIITSL website, fill the form 49-A if you are an Indian citizen, or 49-AA if you are a foreigner, pay online for the duplicate PAN card copy. The authorities will dispatch your PAN card within 45 days.
8. Why do you need a PAN card?
Having a PAN simplifies and expedites a lot of essential processes. Accordingly, some of the benefits of a PAN card include,
- Proof of AddressProof of Address
- Proof of Identity
- Business registration
- Tax filing
- Get a phone connection
- Apply for a gas connection
- Open a Demat account
- Invest in mutual funds
- To be eligible to open and operate bank accounts
- Do financial transactions
- To claim tax refund
Applying for a PAN card benefits you in several ways. In a way, it establishes your credibility and signifies that you are a responsible citizen of India. So, if you do not already have a PAN card, you must apply for one and get it to be eligible for the above benefits. Keep following us for more on financial literacy.