Ever since we were in school, we have been taught to do things in a certain manner by following certain procedures for executing every little work. Our parents had to apply for our admission to a school after which we had to go for an interview. Then, if selected, we were given different GRN (General Registration Number), and IDs were allotted, so that it would be easy for the management of the school to maintain our records.
PAN Card is one such card that has all the basic details of an individual introduced by the Government of India. In this comprehensive guide, let us understand what a PAN card is, what is the purpose of introducing it and what is the procedure for applying for the same.
PAN, or Permanent Account Number, is a unique 10-digit alphanumeric identity allotted to each taxpayer by the Income Tax Department. PAN is an identification key with which the Income Tax Department can track the taxable component of your financial transactions and round up tax defaulters.
Getting a PAN card has become mandatory for every taxpayer in India. Every individual requires a PAN card for carrying out financial transactions such as receiving professional fees or salary which is taxable, purchasing mutual funds, purchasing or selling assets that are above the fixed limits, amongst others.
The main objective of the IT Department for introducing this card is to keep track of people’s financial transactions, compute their tax liability and curb the problem of tax evasion.
PAN Card has become an identity card that is getting the most recognition recently. The IT Department has enabled people to apply for PAN Card online through the NSDL and UTITSL website or the offline mode. If you are familiar with the online tactics and more comfortable applying for it, the online mode is the most convenient mode for you. You can also apply for the PAN card by going the traditional way, that is submitting the physical form to the relevant authorities.
The PAN application process for an individual is given below:
If you want to apply for PAN card in the offline mode, you have to make sure that you don’t make any mistakes and that all the required information is properly and accurately filled in. If you miss out on any information and your application is incomplete, the department may not furnish the card to you.
The procedure of applying for PAN card in offline mode is given below:
Step 1: Download Form 49A, Print and Fill the form
Step 2: Submit the application form
Submit the duly filled application form along with the application fees either through demand draft or cash of INR Rs 110/- ( Proceeding fee Rs 93 + GST @ 18%) to the UTITSL PAN service centre. The Fees will be INR Rs. 1020/-, [(Application fee Rs 93 + Dispatch charges Rs 771)+ GST @ 18%] in case of NRI.
You will receive your PAN card at your address within 15 to 20 days. In case the department requires more information, you will be contacted by email or letter to furnish the same.
Submission of some key documents are necessary along with the PAN card application form (viz. Form 49A for Indian citizens or Form 49AA for foreigners) for offline mode or with the acknowledgement form, if you are applying online, for the verification process. However, the documents required hugely depend on the type of applicant. The list of documents required for obtaining a PAN card is given below:
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You can have only one PAN card throughout your life. There might come a time where you are required to surrender your card owing to certain reasons such as having more than one PAN card or you are leaving the country and won’t be paying taxes making the card useless.
To surrender the PAN card, you can write a letter to the Assessing officer of your jurisdiction, stating the reason for the same.
PAN card is a very important proof these days which can be used in various places for different reasons. If you don’t own a PAN card, we suggest you apply for one immediately. It is a very vital document, especially for taxpayers.
[ Read: How to Surrender PAN Card ]
The fees charged for applying for a PAN card is nominal and varies depending on the type of application filed with the IT Department. Also, fees for the new application and for changes or reprint of the card is different. However, the fees applicable for NRI and foreign applicants are higher as compared to Indian citizens. The fees charged to the Non-Indian citizens are high because it includes dispatching the fresh PAN cards to their foreign residential address and thus postal handling charges are added in the initial fees.