What Is The Eligibility Criteria To Apply For A Pan Card?

Pan Card

Individuals or entities, including those belonging to foreign countries, earning taxable income in the country are required to have a unique Permanent Account Number. The government stores all income and tax-related information of a person or entity against this alphanumeric code. 

Go through these sections to get a detailed idea about PAN card eligibility. 

Eligibility Criteria for PAN Card 

The eligibility criteria and supporting documents needed for the application of a new PAN card are different for Indian citizens/entities and foreign individuals/companies. 

1. Basic criteria for Indian citizens and entities

Indian citizens or organisations have to use Form 49A while applying for a PAN. The basic eligibility criteria for Indian individuals and entities to apply for a PAN card include the following:

Individuals

The applicant has to be an Indian citizen with valid proof of identity, proof of address and proof of date of birth. 

Minors

Minors can also have a PAN card. However, the parents or the guardians have to apply for a PAN on behalf of the child along with valid documents.

Hindu Undivided Family

An HUF is usually considered a separate entity. The Karta or head of the family can apply for a PAN card on behalf of any member by furnishing the necessary supporting documents. In addition, the head of an HUF is also expected to provide father’s name during the PAN application.

Indians residing overseas

Indian citizens living in foreign nations can also get a new PAN. For that, they need to submit proof of residence. 

Mentally challenged individuals

There can be instances where a mentally unstable person might need to have a PAN. In such circumstances, a representative can take care of the application process on behalf of the person. The representative should provide necessary details of the individual along with his/her own details.

Trusts

Registered trusts can apply for a PAN by providing the trust deed or a registration certificate.

Partnerships or limited liability partnerships

A copy of the registration certificate along with a copy of the partnership deed needs to be submitted while applying for a PAN.

Local authorities or associations

Local authorities or associations that are registered with the government can get a PAN by providing a copy of the registration certificate or agreement. 

Companies

 Companies applying for a PAN should be registered with the Registrar of Companies. They should provide a copy of the registration certificate. 

Artificial judicial persons

They can apply for a PAN by submitting a copy of their registration certificate with necessary proof of identity and proof of residence. 

2. Basic criteria for foreign individuals and entities 

Foreign citizens and entities can also apply for a PAN card. However, they need to file Form 49AA. They have to fulfil the following PAN card eligibility criteria and provide these supporting documents:

Foreign individuals

  Foreign nationals looking to get a PAN card have to submit the necessary identity and address proofs. These documents will include citizenship ID number, PIO card, passport and others. In addition, they have to provide a Tax Identification Number attested by the Ministry of External Affairs or an Indian Embassy. 

Firms/trusts/associations

 Foreign entities or organizations wanting to apply for a PAN have to furnish a copy of the registration certificate. Notably, registration certificates are to be attested by the Indian Embassy, High Commission or a Consulate situated in that country.

Companies

Companies from foreign countries can get a PAN by providing a copy of their registration certificate duly attested by the Indian Embassy, Consulate or High Commission located in those countries.

Alternatively, a copy of the registration certificate attested by Indian Government authorities will suffice.

Final Word

Before initiating the PAN card application process for an individual, company, or any other entity, make sure that you fulfil the PAN eligibility criteria. Also, adhere to all necessary guidelines to ensure a hassle-free process. 

Frequently Asked Questions

Is having a PAN card compulsory for all individuals? 

Applying for a PAN card is not compulsory for the following:

• Minors usually do not require a PAN. However, they can use their parents’ or guardians’ PAN. 
• Individuals with no taxable income may not need to apply for a PAN card. 
• NRIs do not need a PAN card for specific transactions.

Why is it important to have a PAN card?

A PAN card is essential for the following purposes:

• For opening a bank account or depository account
• Serves as an identity proof
• To file tax returns
• For loan applications
• To purchase immovable assets worth more than Rs. 5 lakh
• For an investment of more than Rs. 50,000, etc. 

Is there any age restriction with regard to  PAN card eligibility? 

PAN card is usually obtained after the age of 18. However, today you can get a PAN for a child below 18 years. In such cases, the guardian, parents or a representative has to apply for the PAN card on behalf of the minor.

Is having a PAN card compulsory for opening a bank account?

No, individuals can open a bank account without a PAN card by filing Form 60. That said, note that a PAN card is necessary to carry out almost every high-value financial transaction. The Income Tax department has made it mandatory to link your bank account with the PAN. This is necessary as the IT department will send your tax returns to your bank account.

Which proof of address do foreign entities or individuals need for PAN? 

Foreign entities or individuals can use the following documents as address proof for applying for a PAN:

• Bank account statement from the country of residence 
• Bank statement of the NRE account in India
• Copy of visa or a copy of a letter of appointment or contract issued by an Indian firm

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This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.