Permanent Account Number (PAN) is a code that acts as an identification for Indian nationals, especially those who pay Income Tax. It is a unique, 10-character alpha-numeric identifier, issued to all judicial entities identifiable under the Indian Income Tax Act, 1961. It is issued by the Indian Income Tax Department under the supervision of the Central Board for Direct Taxes (CBDT) and it also serves as an important proof of identification. Quoting the PAN is mandatory when filing Income Tax returns, tax deduction at source, or any other communication with Income Tax Department
Permanent Account Number abbreviated as PAN is a unique 10-digit alphanumeric number issued by the Income Tax Department to Indian taxpayers. The department records all tax-related transactions and information of an individual against his unique permanent account number. It is also issued to foreign nationals (such as investors) subject to a valid visa and hence, it is not acceptable as a proof of Indian citizenship.
There are two types of PAN card forms i.e. Form 49A and Form 49AA. Form 49A: Form 49A is supposed to be filled by Indian nationals. Minors and students can also apply for PAN card by filling form 49A. Form 49AA: Form 49AA is supposed to be filled by foreign nationals who wish to obtain a PAN card in India. The PAN is mandatory for a majority of financial transactions such as opening a bank account, receiving taxable salary or professional fees, sale or purchase of assets above specified limits etc.; especially high-value transactions.
The primary purpose of the PAN is to bring a universal identification to all financial transactions and to prevent tax evasion by keeping track of monetary transactions, especially those of high-net-worth individuals who can impact the economy.
The PAN is unique to each individual and is valid for the life time of the holder, throughout India. An important point to note would be that once issued, the PAN is not affected by a change of address.
Documents required for applying PAN Card Application
Proof of Identity required to apply for PAN Card by an Individual who is Indian Citizen
Following are the documents out of which any one can be submitted as identity proof.
- Copy of voter’s identity card
- Ration card with the applicant’s photograph
- Copy of passport
- Copy of driving license
- Arm’s license
- Copy of Aadhar card issued by Unique Identification Authority of India
- Photo identity card issued by central government or state government or any other public sector undertaking
- Central government health scheme card
- Bank certificate containing an attested photograph of the applicant along with bank account number of the applicant
- Copy of pensioner card having photograph of the applicant
- Certificate of identity in original signed by a Member of Parliament or Member of Legislative Assembly or Municipal Counsellor
- In case of PAN card application for minors, any of the above documents either for parents or the minor can be submitted as proof of identity
Address Proof Required to Apply for PAN Card by an Individual who is a Citizen of India
- Copy of the following documents that can be submitted as address proof
- Copy of electricity bills
- Copy of landline bills
- Copy of broadband connection bill
- Bank account statements
- Credit card statement
- Post office passbook featuring address of the applicant
- Passport
- Passport of spouse
- Voter identity card with photograph
- Latest order for property tax assessment
- Driving license
- Domicile certificate issued by government
- Aadhar card issued by Unique Identification Authority of India
- Allotment letter
- If submitting copy of one of the first five documents, the documents should not be more than three months old.
Proof of Date of Birth Required for PAN Card Application by an Individual who is a Citizen of India
- Proof of age is also required to be submitted by the PAN applicant. Any document that specifies the date of birth of the applicant serves the purpose. This document has to be any one of those listed below.
- Birth certificate issued by the Municipal Authority or any office authorized to issue Birth and Death Certificate by the Registrar of Birth and Deaths or the Indian Consulate
- Pension payment order
- Marriage certificate issued by Registrar of Marriages
- Matriculation certificate
- Passport
- Driving license; or
- Domicile certificate issued by the central or state government
- Affidavit signed before a magistrate stating the date of birth
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