We are here to help you.

Bring your needs here! And we will do it.

PAN Card

Submitted by admin on Sat, 03/23/2019 - 17:40
Service Image
pan card service providing by digital center at pune, mumbai, nashik, ahmadnagar, india, maharastra, sangli, satara

What is the PAN Card?

A PAN card is a card issued under the Income Tax Act, 1961 and it contains a unique 10-digit alphanumeric code. This code is computer-generated and is unique to the holder of the card.

Who can avail a PAN Card?

The PAN Card is not only issued to individuals. Companies and partnership firms can also avail a PAN Card and it becomes mandatory for such entities to have a PAN number when they are filing their income tax returns. Even in case of individuals, minors, students and Non-Resident Indians can also apply PAN Card online.

Importance of PAN Card

While the PAN card was introduced with the primary objective of identifying an individual from a taxation point of view, it also serves other purposes.

  1. Valid Identity and Photo Proof
    A PAN card is accepted and produced as a legitimate ID proof across the country for various purposes such as for an application for a passport, ration card, voter ID card, utility connection such as gas and electricity etc.
  2. At the place of employment
    Employers require the PAN details of their employees for the purpose of taxation. Employers need to deduct necessary taxes such as TDS ,Professional Tax etc. They also require the PAN card details to show their payments to employees, in the form of salary income, at the time of filing their Income Tax returns.
  3. Dealings with Banks
    One of the pre-requisites while opening a Bank Account or to avail any kind of financial services is the individual’s PAN Card. This is true irrespective of the type of Bank – Public, Private, Co-operative, etc. In an attempt to eradicate money laundering and black money, banks are required to keep a check on all high-value cash transactions and report to the RBI as the prescribed norms, on a periodic basis. Any cash deposit exceeding Rs. 50,000 with a single banking institution in one day requires the PAN details to be furnished. Also, at the time of opening a Fixed Deposit, whose value is equal to or more than Rs. 50,000, the PAN details are required. This is so because the banks are liable to deduct TDS on the interest earned on such FDs. After the demonetization drive in November 2016, an amendment was made in the Income Tax rules and all banks were asked to procure and link PAN or Form 60 (In cases where PAN was unavailable) to all the existing bank accounts. The only exception being zero balance saving accounts or Basic Savings Bank Deposit Accounts (BASDA) and the accounts under the recently started financial inclusion program – Pradhan Mantri Jan Dhan Yojana (PMJDY). This activity was to be completed by February 2017. Also, the government has ensured that individuals resorting to fraudulent practices such as making multiple deposits of amounts less than 50,000 to escape compliance with statutory provisions, will also be tracked and dealt with accordingly.
  4. Post Office Deposits
    Similar to the FDs with Banks, PAN Card is a mandatory requirement while opening a deposit of Rs. 50,000 or more with the Post Office Department as well.
  5. Foreign currency exchange
    For foreign travels, in order to get money exchanged for foreign currencies, along with a copy of the visa, tickets, passport, etc, travelers need to provide a copy of the PAN Card as well.
  6. Share Trading
    PAN details need to be furnished to the brokers along with the Demat and Trading account provider, for the purpose of trading of shares.
  7. Mutual Funds and other securities
    Similar to share trading, any request to open mutual fund investments or investment in debentures, bonds etc. need to be supported with the PAN details of the investor.
  8. Property Transactions
    Both the buyer as well as the seller need to provide their PAN details at the time of the registration of the property as well as for finalizing the sales deed. In a case of a property with joint ownership, it is mandatory to quote the PAN details of both the owners. Any transaction related to sale or purchase of an immovable property requires the PAN details when the value of such deal is or exceeds Rs. 5 Lakhs.
  9. Credit or Debit Card
    PAN details are a mandatory pre-requisite for the application of Credit as well as Debit Cards. The card applications cannot go ahead without this detail and will get rejected. Such rejections also have a negative bearing on the credit score of an individual as well as can create a problem in the future for application of loan, etc.
  10. Loan Applications
    All loan applications such as personal loan , home loan etc. require the PAN details of the requestor to be provided.
  11. Payment Wallets
    In this age of demonetization, payment wallets have gained a significant place in the way monetary transactions are done. Various payment wallets such as Paytm, Mobikwik, etc. require this detail to be shared for their KYC purposes, if the user wants to make transactions beyond the specified limit of Rs. 20,000 per month
  12. Purchase of Vehicle
    For all vehicle transactions (sale or purchase) excluding two- wheelers, which fall under the ambit of registration as per the Act for Motor Vehicles, require the PAN details to be shared.
  13. Payment of insurance premium
    It has been instructed by the Central Board of Direct Taxes (CBDT) that the policyholder needs to provide his / her PAN details at the time of paying the premium to the insurance companies, for amounts more than Rs. 50,000 in a particular year.
  14. Jewelry purchase
    Buyers need to furnish their PAN details at the time of making jewelry or bullion purchases for amounts exceeding Rs. 5 Lakhs.
  15. For filing tax returns
    Individuals and entities (companies, partnership firms, HUFs, etc.) are required to quote their PAN numbers whenever they file a tax return. This is a mandatory requirement. If there is no PAN card, individuals and entities would be required to pay a flat tax of 30% on their earning irrespective of the income-tax bracket they might fall in. So, for the purpose of taxation, a PAN number is required and one can check PAN card status by PAN number
  16. Registration of business
    companies, partnership firms, Hindu Undivided Families or other entities who seek registration of their businesses cannot do so if they do not have a PAN number to quote in the registration details.
  17. For conducting financial transactions
    A host of financial transactions can be done only if the PAN card no. of the individual/entity is available. Some common transactions facilitated by the PAN card include sale or purchase of any immovable property the value of which is Rs.5 lakhs and above, sale or purchase of any vehicle except a two-wheeler, depositing any amount higher than Rs.50,000 in a bank, buying bonds valued at Rs.50,000 or above, remitting funds outside India, travel expenses made for travelling overseas if such expenses are in excess of Rs.25,000, buying mutual fund schemes, buying insurance policies or shares valued at Rs.50,000 and above, etc.
  18. For availing utility connections
    In many instances when utilities like a post-paid mobile phone connection, LPG connection, electricity connection, internet connection, etc. are required, a PAN card comes in handy. However, it is always recommended that you use alternate ID proof such as DL, Voter ID card, etc. if possible.
  19. For opening a bank account
    Nowadays the bank’s Know Your Customer (KYC) norms have become quite stringent and the PAN card is a primary requirement, banks carry out their individual number verification when opening a bank account.

Documents Required for a PAN Card

While availing a PAN Card, some key documents are also required to be submitted along with the PAN Card application form (Form 49A or Form 49AA) or the acknowledgement form (if applying online) for PAN card verification process. The requirement of documents varies greatly depending on the applicant. Key documents which are required along with the PAN application form when individuals or other entities apply for a PAN card. Find below the list of documents required for PAN card

  • For an individual applicant
    • Identity Proof which can be a copy of any one among the following:
    • Any govt. issued ID – Aadhar, DL, Voter ID, etc
    • Arm’s License
    • Pensioner Card which contains the applicant’s photograph
    • A photo ID card which is issued by Central Government, State Government or a Public Sector Undertaking
    • Central Government’s Health Scheme Card or Ex-Servicemen’s Contributory Health Scheme Photo Card
    • An original bank certificate which is issued on the bank’s letterhead from the branch of the bank and attested by the issuing officer. Such a certificate should contain an attested photograph of the applicant along with the bank account number
    • An address proof which can be a copy of any one of the following:
    • Electricity, landline or broadband connection bill
    • Postpaid mobile phone bill
    • Water bill
    • LPG or piped gas connection bill or Gas Connection book
    • Bank account statement
    • Credit card statement
    • Deposit account statement
    • Post Office account Passbook
    • Passport
    • Voter’s ID Card
    • Driving License
    • Property registration document
    • Domicile certificate issued by the Indian Government
    • Aadhar Card
    • Original certificate from the employer provided that the employer is a reputed public or private corporation
    • Date of birth proof which can be a copy of any one of the following:
    • Birth certificate which is issued by the Municipal Authority or any authorized authority
    • Matriculation certificate
    • Pension Payment order
    • Passport
    • Marriage certificate issued by Registrar of Marriages
    • Driving license
    • Domicile certificate issued by the Indian Government
    • An affidavit sworn before a magistrate stating the applicant’s date of birth
  • For a Hindu Undivided Family (HUF)
    • An affidavit issued by the Karta of the HUF stating the name, address and the father’s name of every coparcener as on the date on which the application is made.
    • Identity proof, address proof and date of birth proof as in case of an individual for the Karta of the HUF.
  • For a company registered in India
    • A copy of the Certificate of Registration issued by the Registrar of Companies.
  • For firms and Limited Liability Partnerships formed or registered in India
    • A copy of the Certificate of Registration issued by the Registrar of Firms or Limited Liability Partnerships.
    • A copy of the Partnership Deed.
  • For Trust formed or registered in India
    • Copy of Trust Deed or a copy of the Certificate of Registration Number issued by a Charity Commissioner.
  • For an Association of Persons
    • Copy of Agreement/Certificate of Registration Number from Registrar of Co-operative Society or Charity Commissioner or other competent authority or any document issued by the Central/State Government which shows identity and address of applicant.
  • For individuals who are not Indian Citizens
    • A proof of identity which can be any one of the following
      • Passport copy
      • Copy of PIO card issued by the Indian Government
      • Copy of OCI Card issued by the Indian Government
      • Copy of other national or citizenship Identification Number or TIN attested by applicable ‘Apostille’, Indian Embassy, High Commission or Consulate where the applicant is based.
    • Address proof can be any one of the following
      • Passport copy
      • Copy of PIO card issued by the Indian Government
      • Copy of OCI Card issued by the Indian Government
      • Copy of other national or citizenship Identification Number or TIN attested by relevant ‘Apostille’, Indian Embassy, High Commission or Consulate
      • Copy of bank statement of the residential country
      • Copy of NRE bank statement in India
      • Copy of resident certificate or Residential permit
      • Copy of registration certificate issued by FRO
      • Copy of VISA granted and appointment letter from any Indian company

Procedure for submitting PAN application in digitalcenter portal with 4 easy steps

    • step1. download FORM49A /FORM49AA
    • step2. fill up the form 49A along with 2 photo and 3 signature , click here for filled sample form49A form OR Directions to fill up form49A
    • step3. login to digitalcenter.co.in
    • step4. click on add new PAN, fill up the all details and upload all essential documents with self attested then click on submit button

Directions to fill up form49A

    • Affix two passport size photographs on the space provided in the form and sign across (applicable to ‘individual’ applicants). If thumb impression is used, it needs to be duly attested to verify its authentication. Attestation is valid if it is done either by a Gazetted Officer, Magistrate or even a Notary Public and it needs to be necessarily done with signature as well as official seal and stamp.
    • Fill up the entire form in Block letters and preferably in black ink. Form should only be filled in English
    • AO code has to be duly filled by the applicants. Details can be obtained from the Income Tax office or from PAN centre or from NSDL or UTI websites
    • Read through the detailed guidelines and instructions provided (though the form is self-explanatory) and fill up the form accordingly without any error
    • Avoid overwriting.
    • Write in the name, address, Date of birth and other important details as it is mentioned in the proof that you are enclosing along with the form.
    • If office address is chosen as the communication address, ensure to enclose the proof for the office address along with proof of residence address.
    • Fill in the telephone number and email ID details correctly as application status is notified through this.
    • Select the appropriate status of applicant (Individual/HUF/Company/Partnership firm/Government/AOP/LLP/Trusts/BOI/Local Authority/Artificial Judicial Person)
    • Mention clearly the document that you are enclosing as a proof of identity, proof of address and Date of birth proof
    • Read through the filled form to ensure there are no errors.