Tillie Doyle
The Permanent Account Number (PAN) card is a critical piece of identification in India, issued by the Income Tax Department. It is a 10-digit alphanumeric number, provided in the form of a laminated card, that serves as an identifier for individuals, families, firms, and local authorities when dealing with tax-related matters. The PAN card is used to link all transactions of the holder with the tax department, including tax payments, TDS/TCS credits, returns of income, and specified transactions. Given its role in tax-related matters, the PAN card is essential for filing income tax returns and making tax payments. Additionally, the PAN card can be linked with other important identification documents, such as the Aadhaar card, through biometric modes at designated centres.
| Characteristics | Values |
|---|---|
| Purpose | To link all transactions of the person with the Income Tax Department |
| Transactions | Tax payments, TDS/TCS credits, returns of income, specified transactions, correspondence, etc. |
| Use cases | Acting as an identifier for the person with the tax department, registering and logging in with PAN on the Income Tax E-Filing Portal, filling out ITR forms, and e-verifying returns |
| Application | Online application form provided by the Income Tax Department, Ministry of Finance |
| Application fee | Physical PAN Card and e-PAN Card: Rs.107/-; e-PAN Card only: Rs.72/- |
| Applicant categories | Individual, firm, company, family, local authority, etc. |
| Correction/change in PAN data | 'Request for New PAN Card or/and Changes or Correction in PAN Data' application |
| Penalty for possession of more than one PAN | ₹10,000 as per provisions of Section 272B of the Income Tax Act, 1961 |
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What You'll Learn
When filing income tax returns
The Permanent Account Number (PAN) card is an important document for filing income tax returns (ITR) in India. Issued by the Indian Income Tax Department, the PAN card is a vital identification document for taxpayers in India. It is a 10-digit alphanumeric code that records all tax-related information for individuals and entities.
The PAN card is mandatory for all persons who pay taxes in India and engage in financial transactions. It serves as a primary key for these transactions, linking all tax-related activities of the individual to the Income Tax Department. This includes tax payments, TDS/TCS credits, returns of income, and other specified transactions.
Additionally, the PAN card can be used to generate Form-16, which is essential for income tax filing. It also enables individuals to claim deductions, use tax calculator software, claim HRA, and check refund status. The PAN card serves as a secure and unique identifier, preventing fraud and ensuring accurate tax compliance.
For foreign citizens wishing to invest or undertake business in India, the PAN card is also necessary for tax-related purposes. The procedure to obtain a PAN card for foreign citizens involves submitting Form 49AA at authorized PAN Service Centres through a representative in India. This ensures that their tax-related activities in India are properly recorded and compliant with Indian tax regulations.
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To link Aadhaar with PAN
Linking Aadhaar with PAN
The Indian government has made it mandatory for eligible individuals to link their Aadhaar with their PAN cards. This is because the Permanent Account Number (PAN) enables the Income Tax Department to link all transactions of the person with the department, including tax payments, TDS/TCS credits, returns of income, specified transactions, and correspondence.
For new applicants of the PAN card, the Aadhaar PAN linking is done automatically during the application stage. However, for existing PAN holders who were allotted PAN on or before 1 July 2017, it is mandatory to link PAN with Aadhaar. If you do not link your PAN with the Aadhaar by 30 June 2023, your PAN will become inoperative.
- Visit the e-Filing Portal Home page and click on Link Aadhaar in the Quick Links section. Alternatively, log in to the e-filing portal and click on Link Aadhaar in the Profile section.
- Enter your PAN and Aadhaar Number.
- Click on Continue to Pay Through e-Pay Tax.
- Enter your PAN, confirm PAN, and any mobile number to receive OTP.
- Post payment of the fee, you can submit your Aadhaar PAN link request.
- Go to the e-filing Portal > Login > On Dashboard, in the Profile section under the Link Aadhaar to PAN option, click Link Aadhaar. Or alternatively, click on Link Aadhaar in the personal details section.
- Enter the Aadhaar number and click on Validate.
- Enter the mandatory details as required and click on Link Aadhaar.
- Enter the 6-digit OTP received on the registered mobile number and click on Validate.
- Check the status of your request.
Note that if your PAN and Aadhaar are already linked, or your PAN is linked to some other Aadhaar, you will need to contact your Jurisdictional Assessing Officer and submit a request for delinking.
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$21.95
For NRIs to intimate their NRI status
NRIs can apply for a PAN card online, unlocking several benefits. A PAN card is crucial for NRIs taking part in India's economic life. It is the first step in investing in stocks or mutual funds. Opening NRE/NRO accounts, which help manage money in India, requires a PAN card.
A PAN card is mandatory for NRIs to buy or sell property over ₹10 lakh in India. It is also required to deposit amounts over a certain limit and simplifies the KYC procedure in most banks. NRIs earning in India, whether through salary, rent, or other means, need a PAN card for tax filing purposes.
To apply for an NRI PAN card online, NRIs holding Indian citizenship should fill out Form 49A, available on the websites of UTIITSL or Protean (formerly NSDL eGov). The application form should be filled in clear block letters using black ink, and the applicant's name should match that on their address and identity proof. The applicant will receive a 15-digit acknowledgment receipt online after submitting the form.
NRIs whose PAN is still inoperative are requested to intimate their NRI status, along with supporting documents, to their respective jurisdictional Assessing Officer (JAO).
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As an identifier for tax transactions
The Permanent Account Number (PAN) card is a ten-digit alphanumeric number issued by India's Income Tax Department in the form of a laminated card. PAN acts as an identifier for individuals, families, firms, local authorities, and others with the tax department. It enables the department to link all transactions of the person with the department, including tax payments, TDS/TCS credits, returns of income, specified transactions, and correspondence.
The Income Tax E-Filing Portal by India's Income Tax Department allows users to register and log in with their PAN to file their tax returns online. The portal offers a user-friendly platform, providing pre-filled forms, step-by-step guidance, and resources such as guides, FAQs, and calculators to assist users. It also enables taxpayers to track their refund statuses, request rectifications, and lodge grievances.
The PAN card is essential for tax transactions as it helps the tax department identify the individual or entity associated with a particular transaction. It allows the department to track and record all tax-related activities of the PAN holder, ensuring compliance with tax laws and regulations. The PAN database maintains up-to-date information about the PAN holder, including name, date of birth, and address, ensuring accurate record-keeping for tax purposes.
Additionally, the PAN card facilitates online tax payments through the e-Pay Tax service on the Income Tax e-filing portal. Taxpayers can use their PAN to log in securely and complete their income tax payments online using various payment methods. This simplifies the tax payment process, making it more convenient and efficient for taxpayers.
It is important to note that as per Section 272B of the Income Tax Act, 1961, possessing more than one PAN card can result in a penalty of ₹10,000. Individuals must ensure they have only one valid PAN and update or correct their PAN information as needed through the official channels.
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To apply for tax refunds
A PAN card is a ten-digit alphanumeric number issued in the form of a laminated card by India's Income Tax Department. It enables the department to link all transactions of the individual with the department, including tax payments, TDS/TCS credits, returns of income, and specified transactions.
Indian citizens can apply for tax refunds through the Income Tax E-Filing Portal, which streamlines the process of filing tax returns. The portal offers a user-friendly platform for registering and logging in with a PAN card, filling out various ITR forms, and e-verifying returns using Aadhaar OTP, net banking, or DSC.
The portal also allows taxpayers to track the status of their tax refunds, request rectifications if needed, and lodge grievances. It provides pre-filled forms, step-by-step guidance, and a range of resources, including guides, FAQs, and calculators, to assist users in the tax refund application process.
Additionally, the Income Tax Department's e-filing portal offers an Income and Tax Calculator to help taxpayers estimate their taxable income and calculate their tax liability. This tool aids in accurate financial planning by considering income, deductions, and applicable tax rates for the relevant assessment year.
The e-Pay Tax service on the same portal also enables taxpayers to fulfil their income tax obligations online. This service allows users to select the type of payment, enter the necessary details, and complete the transaction using various online payment methods.
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Frequently asked questions
A PAN card is a Permanent Account Number card. It is a ten-digit alphanumeric number issued in the form of a laminated card by the Income Tax Department.
PAN acts as an identifier for individuals, firms, and companies with the tax department. It is used for tax payments, TDS/TCS credits, returns of income, and other transactions.
You can apply for a PAN card online through the Income Tax Department's e-filing portal.
