PAN or Permanent Account Number is a 10-digit alphanumeric identification number issued by the Income Tax Department. Having a PAN is essential for individuals to be able to carry out a variety of tasks, such as filing an income tax return (ITR), setting up a National Pension System account online (all citizens model) and making a high-value payment. One can apply for a PAN card online through either of two websites, according to the Income Tax Department's website - incometaxindia.gov.in. These are the separate websites of the securities depository NSDL (National Securities Depository Limited) and financial service provider UTIITSL (UTI Infrastructure Technology And Services Limited), according to securities depository NSDL (National Securities Depository Limited). (Also read: Why having a PAN card is important)
Here are key things to know about PAN card applications:
PAN card application charges
For making an application to be assigned a PAN and obtain a PAN card, a charge of Rs. 93 (excluding GST) is applicable in case of the communication address given by the applicant is located within the country. In case of a foreign address is given by the application for communication in his or her PAN application, a fee of Rs 864 (excluding GST) is applicable, according to the Income Tax Department website.
PAN application mode of payment
The payment against a PAN card application can be made through a credit/debit card, a demand draft or through net-banking, according to the taxman. Once the application and payment is accepted, the applicant is required to send the supporting documents through courier or post to NSDL or UTITSL (whichever agency chosen to apply for PAN).
"Only after the receipt of the documents, PAN application would be processed by NSDL/UTITSL," the Income Tax Department mentions.
Individuals applying for PAN are required to submit copies of relevant documents such as proof of identity, proof of date of birth and proof of address. According to NSDL's website, tin-nsdl.com, a copy each of Aadhaar card, elector's photo identity card, driving license or passport can be submitted as proof in the three categories, among other acceptable documents. For example, a matriculation certificate or marksheet of a recognised board is accepted as proof of age, according to the NSDL portal.
Some important PAN card rules for taxpayers
PAN is required for payment in cash for purchase of a bank draft, pay order or banker's cheque for an amount of Rs 50,000 or more in a day, according to the Income Tax Department.
The personal identification number issued by the Income Tax Department is also mandatory for deposit of cash amount to Rs 50,000 and above in a bank in a day.
Quoting of PAN is also compulsory for making an application to obtain a credit or debit card.
Payment of an amount of Rs 50,000 or more to a company for acquiring its shares, or to a company/institution for acquiring its debentures or bonds also requires quoting of PAN.
Besides, payment of Rs 50,000 or more in a year as life insurance premium also requires PAN.
Meanwhile, the Income Tax Department has announced September 30 as the due date for linking the Aadhaar number with PAN (Permanent Account Number) "unless specifically exempted". The Income Tax Department had earlier announced March 31 as the due date for PAN holders required to file an income tax return to seed their Aadhaar number.