Know your PAN helps in knowing the details of the PAN Card online with ease. A PAN Card in India is mandatory for a number of financial transactions. This blog talks in length about what PAN Card and know your PAN is. It also provides an insight on how to apply for a PAN card online and who all are required to obtain a PAN Card.
What is PAN Card?
PAN Card (Permanent Account Number) is a 10-digit alpha-numeric number introduced by the Income Tax Department. It is a document of identification and is uniquely assigned to every assessee. It is mandatory for every taxpayer to have a PAN card. The main purpose of the PAN Card is to assist both the taxpayer and the Income Tax Department in various endeavours. PAN Card in India is obtained voluntarily by any person, irrespective of his citizenship and age. Therefore, NRIs, foreigners, and minors can also obtain a PAN Card.
Who is required to Obtain a PAN Card?
According to the Income Tax Act, the following are the people who are required to obtain a PAN Card:
If an individual’s income is more than the limit of non-payable tax. Presently, an individual earning more than INR 2.5 lakhs in a year has to pay income tax.
- If the earnings of the business exceed the limit of INR 5 Lakhs in a year.
In case an individual is required to get GST registration or Import code or export code.
Apply for Working Capital Loan
Which are the activities where PAN Card is Required?
PAN Card or PAN number is required while Income tax e filing in India. In addition, PAN Card is required for by an individual when he/she involves in the below-mentioned financial activities:
PAN Card is important while opening a bank account (including cooperative banks).
When applying for debit or credit card.
When applying for a business loan or any other type of loan.
When opening a DEMAT account.
When an individual is involved in purchasing or selling activities of motor vehicles (excluding two-wheelers). Here, PAN document is necessary while the registration process.
When an individual is required to pay restaurant or hotel bill of more than INR 50,000 in a single transaction.
PAN Card is required while purchasing foreign currency of more than INR 50,000 or when you are traveling outside the country.
To buy mutual funds of INR 50,000 or more or to buy a company’s bond or debentures worth INR 50,000 or more.
When bonds from RBI worth INR 50,000 or more.
When purchasing or selling securities except for shares of more than INR 1,00,000 in a single transaction.
When depositing cash in the bank or post office of more than INR 50,000 or more in a single day.
When purchasing a draft or cheque from the bank of INR 50,000 or more through a cash payment in a single transaction.
While depositing an amount of INR 50,000 or more in a single day in banks and post offices.
While depositing an amount of INR 5,00,000 or more in a single year in banks and post offices.
When paying an insurance premium of INR 50,000 or more in a financial year.
When buying or selling goods or services of INR 2,00,000 or more in a single transaction.
How to apply for PAN Card?
Also Read: Income Tax e-Filing: The Easiest Way To e-File Income Tax In India
An individual can apply for a PAN Card by duly filing the PAN Card application form, 49A form, and submitting at PAN facilitation centres. Additionally, a person can also register himself for PAN Card online. Once applied for PAN Card, the applicant can check the PAN Card status on UTI website.
How to fill the PAN Card Application Form?
You can follow the below mentioned steps to fill and submit the PAN application form 49A:
- The applicant must fill the last name with the middle and first name in the respective order in the form 49A.
- If the applicant has the Adhaar Card, Adhaar number must also be filled.
- The source of income of the person must be mentioned. In case there is no source of income, then it must be mentioned in the provided separate column.
- The details of the applicant representative must be filled, according to Section 16 of the Income Tax Act. The proofs of the identity of the applicant representative must also be submitted along with the PAN Card application form.
- The PAN card application must be signed and verified by the applicant or applicant representative.
- After the submission of the application, a unique number will be created. The application can use the same to track the PAN card status.
What is the Fee for PAN Card Application?
A fee of INR 107 must be paid along with the PAN Card application form which is inclusive of GST. The applicant can make the payment through credit card, debit card, or net banking. A demand draft can also be submitted.
How to Track PAN Card Application?
When the PAN Card application form is submitted, a 15-digit code is generated. This code can be used to track the PAN application online on the UTITS or NSDL website.
How to Correct Wrong Information in the PAN Card?
Also Read: How To Cancel GST Registration On GST Portal In India?
If there is any wrong information entered in the PAN Card, it can be corrected by mentioning it in a separate form. The PAN Card correction form must be submitted along with the identity, address, and other proofs and details. A fee of INR 107 must also be paid to UTITS or NSDL.
How to Cancel or Return PAN Card?
In case the applicant has obtained more than one PAN Card, then he must cancel or return the PAN Card. Every single person is eligible to obtain only one PAN Card and if he is found having more than one PAN Card, a penalty of INR 10,000 can be levied on him. A separate form along with the reason for cancelling PAN must be submitted to UTITS or NSDL.
What is Know Your PAN?
Know your PAN is a mechanism where the applicant can know his details of the PAN Card, such as:
- 10-digit PAN Number
- Name of the Assessee
- Date of Birth
- Address of Assessee
Know your PAN is helpful when an individual has lost his or her PAN Card and need it urgently for some purpose. This facility is provided by the Income Tax Department.
How to Know Your PAN?
Also Read: GST Login: Guide On How To Login GST Portal In India
Here’s how you can get to know your PAN:
- Step 1: Visit the Income Tax e-Filing Website.
- Step 2: Enter your first, middle, and last name.
- Step 3: Choose the status, whether you are individual, Hindu Undivided family, Body of Individuals, Association of persons, Firm, Trust, or Local Authority.
- Step 4: Choose gender.
- Step 5: Enter Date of Birth.
- Step 6: Provide your registered active mobile number and click submit.
- Step 7: An OTP will be sent to your number. Enter it and validate.
- Step 8: Your PAN Card, Jurisdiction, and status of the PAN will appear on the screen.
A PAN Card is required for various purposes ranging from applying for an SME loan and opening PAN Card to making investments and ITR filings.