So what is a PAN Card?

Permanent Account Number (PAN) is issued by the Indian Income Tax Department. Being a ten-digit alphanumeric number, the PAN card is laminated and tamper-proof. Being unique to the person who applied to it, the PAN serves multiple purposes for an individual in India. This Permanent Account Number is embossed on a card and delivered to the applicant in the the form of a PANCard, a laminated card with your picture and basic information. It looks more like an India ID card and can be used as an Identity proof issued by the government

The PAN enables the Income Tax Department to link all transactions of a person to the department. All transactions, including tax payments, TDS/TCS, income, wealth are recorded by the Department with the PAN.
PAN facilitates the coordination of various documents involved in paying of taxes, assessment of taxes, demand of taxes, and so on of the assesses. It facilitates easy retrieval and viewing of such information which would not have been possible otherwise. The PAN helps an individual raise loans, invest, conduct business activities, apart from other tax related activities.

The importance of having PAN.

Whenever a situation arises where you have to quote returns of your income, you use the PAN. Any payment to the Income Tax Department has to have the PAN. When you sell or purchase immovable property, you quote PAN. You quote this on properties valued at rupees five lakh and above.

When you deposit a term deposit of over fifty thousand rupees, you quote your PAN. Even when you open a bank account, apply for a new telephone connection; you have to quote this number. There are a lot of instances where you produce the PAN as mandatory input and in other situations as optional input.

How to apply for a PAN?

You fill the new NRI Form No. 49 A. You can get this form by filling the form on the left. In this form you enter your Full Name, Date of Birth, Father's Full Name to name a few compulsory inputs. In the case of companies, you enter the date of formation of the company. In case of married women, they should give their father's complete expanded name. PAN can be applied by non-Indians too. In case of foreign nationals, the form should be duly signed, certified, and attested by the Indian Embassy after proper verification with their foreign national counterparts.

Submitting the application

You can submit the duly signed form at the Income Tax Department in your locality or apply through us. 

What does the PAN card contain?

PAN - a unique ten-digit alphanumeric combination
Name - Name of the PAN holder
Date of Birth - Date of birth of the PAN holder
Father name - Father's name of the PAN holder
Photograph placeholder - the photograph of the PAN holder
Signature - The signature of the PAN holder

Who must have a PAN?

In general, any person working in India and required to show proof of income should quote PAN. Self-employed persons, or people who run their own business and whose sales exceed rupees five lakh should quote the PAN.
Any person who wants to invest in the country should have a PAN. This is because investments involve financial transactions, and any financial transaction in India requires the quoting of the PAN.

Can a person hold more than one PAN?

A person can have only one PAN. Holding more than one PAN is illegal. In case you lose your PAN, you submit a reprint request on the site of the Income Tax department. You are required to maintain prudence with regards to applying for a PAN.

Some people because of a forgetful disposition have applied for more than one PAN. In such situations, these people have been imposed a fine that ranged from rupees five hundred to rupees ten thousand. The PAN is an important tool that is also important to your financial integrity. So safeguarding it and maintaining its integrity is a legal priority.

Is it now compulsory?

With effect from April 1st, 2007, it's now compulsory for NRIs & Foreign Passport holders to quote PAN on all kinds of financial/investment related transactions in India. Eg: to buy property, open demat/bank account, send money to India, invest in India, etc. The tax department has made it mandatory for everyone (including NRIs, PIOs & Companies) who wish to conduct any type of investments and financial transactions in India. Carrying business, filing or paying taxes, investing in India, buying a property, opening a bank or demat account, etc.

Is the Permanent Account Number also mandatory for NRIs? These days the Tax Department of India has made it compulsory to provide your PAN while paying taxes, opening a bank account, investing, buying a home and everything else where money is involved.

What does a PAN Card contain? The PAN card states all of your basic information on it including: your PAN, your name, your birth date, your father's name, and your signature. In case of a company pan card it includes the India tax number, name of the company and the date of your company formation or incorporation.

Do I have to Pay Taxes if I apply for a PAN Number? You PAY taxes only if you generate income from India. But, it is always advised to 'file ZERO taxes' even though you are not making any money in India, as it enhances your credit history and credibility.

What if I don't have a PAN number? Non-residents today can apply for a PAN Card and make the required payment online. It generally takes 20-30 days for a PAN Card to be made for non-residents. Please remember that if you DO NOT have a PAN, you are liable to pay a fine of Rs.10000 as per the Income Tax (IT) Department's rules.