PAN (Permanent Account Number) refers to a 10-digit alphanumeric code utilised by the Income Tax Department to identify taxpayers in India. The PAN system effectively identifies all tax-paying entities, including individuals and companies.
A PAN card is necessary for most monetary transactions above a certain limit. It is also mandatory for filing taxes, receiving tax refunds and registration of businesses. So, it is necessary for both individuals and businesses to apply for a PAN card.
Depending on the entity, there are different types of PAN cards and the following sections have all the details about the same.
PAN cards can be issued for any entity that is liable to pay taxes, for example, individuals, HUFs, NRIs, companies and institutions. The applicant status is represented by the 4th digit on the PAN number, which is different for each type of PAN card.
The following are all the different types of PAN cards and their letters:
Let us take the example of a PAN- BHPCA5845D to know what type of PAN card it is.
The first three numbers are in a sequence from AAA to ZZZ, while the fourth character, C, tells us that it is a PAN for a company. Next, the fifth character A represents the first character of the company’s name. The four numbers after that are in a series from 0001 to 9999, while the last letter is an alphabetic digit check.
Applicants who are resident Indians, NRIs or foreigners can apply for this type of PAN card. PAN cards for individuals have the person’s name, photograph, father’s/mother’s name, signature, date of birth, QR code, date of issue and PAN.
Any resident Indian, including students and minors, can apply for a PAN card by submitting the 49A form. Non-Resident Indians and Overseas Citizens of India (OCI) can apply for a PAN card by filling out form 49AA.
To get a PAN card for individuals, you will have to furnish valid proofs of identity, address and date of birth. Minors and students can also apply for a PAN card, especially when they are nominated for an investment/property.
Entities like companies, firms and LLPs cannot register their business in India without a PAN card. In addition, companies registered outside the country will need a PAN card if they are liable to pay taxes here.
PAN cards for businesses do not have any photographs, person’s name, date of birth, father’s/mother’s name or signature. They have the organisation’s name in place of the cardholder’s name and the entity’s incorporation date instead of DOB.
Indian companies, partnership firms, NGOs, local bodies, trusts etc., need to file form 49A while foreign entities need to file the form 49AA.
Here is a list of entities that must have a PAN card under Section 139A of the Income Tax Act.
Depending on the type of applicants, the following documents are required to apply for a PAN card.
ID proof (voter ID, Aadhaar card) and address proof (utility bills, voter ID, bank account statement, etc.)
Indian passport, copy of OCI, PIO issued by the Indian government, bank statement from the country of residence, NRE bank statement, copy of VISA issued by an Indian company (for address proof)
Affidavit issued by the HUF’s Karta stating coparcener’s name, address, and father’s name; valid proofs with regard to age, identity and address for individual PAN
Registration certificate number issued by the Registrar of Co-operative Societies, government-issued IDs
Copy of registration certificate issued by the Registrar of Companies
Copy of partnership deed and registration certificate
Copy of registration certificate issued by the Charity Commissioner
Any tax paying entity in India, including NRIs, foreigners, companies, trusts or NGOs, needs to have a PAN card. It serves as proof of identity and allows you to perform high-value transactions. Furthermore, this document allows you to file taxes and receive tax refunds.
You will need to submit the following documents while applying for a PAN card for your business organisation:
Follow these steps to correct your PAN card’s information.
Click on ‘Apply Online’ on NSDL/UTIITSL’s webpage.
Select ‘Application Type’ and click on ‘Changes or Correction in the Existing PAN Card’
Fill in the correct information, upload necessary documents and complete payment.
An applicant who has an Aadhaar card and a mobile number that is registered with UIDAI can apply for an instant PAN using the Aadhaar number. To get a PAN, go to the Income Tax Department’s e-filing portal and enter your Aadhaar number, OTP and e-mail address.
Yes, it is compulsory for individuals to link their Aadhaar with PAN. If they fail to link both these documents, they won’t be able to file income tax returns. Moreover, they will not be able to carry out a banking transaction worth over Rs. 50,000.
UTI Infrastructure Technology and Services Limited (UTIITSL) and National Securities Depository Limited (NSDL) have PAN Services Centres in all major Indian cities. You can also apply for PAN online via the websites of NSDL and UTIITSL.
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