Permanent Account Number (PAN) is a code that acts as an identification for Indian nationals, especially those who pay Income Tax. It is a unique, 10-character alphanumeric identifier issued to all judicial entities identifiable under the Indian Income Tax Act, 1961. The Indian Income Tax Department issues it under the supervision of the Central Board for Direct Taxes (CBDT), and it also serves as an essential proof of identification. Quoting the PAN is mandatory when filing income tax returns, filing tax deductions at the source, or communicating with the income tax department.
Permanent Account Number, abbreviated as PAN, is a unique 10-digit alphanumeric number issued by the Income Tax Department to Indian taxpayers. The department records all tax-related transactions and information of an individual against their unique permanent account number. It is also issued to foreign nationals (such as investors) subject to a valid visa, but it is not acceptable as proof of Indian citizenship.
There are two types of PAN card forms, i.e,. Form 49A and Form 49AA. Form 49A: Form 49A is supposed to be filled out by Indian nationals. Minors and students can also apply for a PAN card by filling out Form 49A. Form 49AA: Form 49AA is supposed to be filled out by foreign nationals who wish to obtain a PAN card in India. The PAN is mandatory for a majority of financial transactions such as opening a bank account, receiving taxable salary or professional fees, sale or purchase of assets above specified limits, etc., especially high-value transactions.
The primary purpose of the PAN is to provide universal identification for all financial transactions and to prevent tax evasion by tracking monetary transactions, especially those of high-net-worth individuals who can impact the economy.
The PAN is unique to each individual and is valid throughout India for the life of the holder. An important point to note is that once issued, the PAN is not affected by a change of address.
Documents required for PAN Card Application
Proof of Identity required to apply for PAN Card by an Individual who is an Indian Citizen. The following are the documents that anyone can submit as proof of identity.
- Copy of identity card
- Ration card with a photograph
- Copy of passport
- Copy of driving license
- ArArm’sicense
- Copy of Aadhar card issued by the Unique Identification Authority of India
- A photo identity card issued by the central government, the state government, or any other public sector undertaking
- Central government health scheme card
- A bank certificate containing an attested photograph of the applicant, along with the bank account number of the applicant
- Copy of pensioner card having a photograph of the applicant
- Certificate of identity in original, signed by a Member of Parliament or a Member of the Legislative Assembly, or a Municipal Councilor
- In case of PAN card application for minors, any of the above documents, either for parents or the minor, can be submitted as proof of identity
Address Proof Required to Apply for PAN Card by an Individual who is a Citizen of India
- Copy of the following documents that can be submitted as address proof
- Copy of electricity bills
- Copy of landline bills
- Copy of broadband connection bill
- Bank account statements
- Credit card statement
- Post office passbook featuring the address of the applicant
- Passport
- Passport of spouse
- Voter identity card with photograph
- Latest order for property tax assessment
- Driving license
- Domicile certificate issued by the government
- Aadhar card issued by the Unique Identification Authority of India
- Allotment letter
- If submitting a copy of one of the first five documents, the documents should not be more than three months old.
Proof of Date of Birth Required for PAN Card Application by an Individual who is a Citizen of India
- The PAN applicant must also submit proof of age. Any document that specifies the applicant’s state of birth serves the purpose. This document must be any one of those listed below.
- Birth certificate issued by the Municipal Authority or any office authorized to issue Birth and Death Certificate by the Registrar of Birth and Deaths or the Indian Consulate
- Pension payment order
- Marriage certificate issued by the Registrar of Marriages
- Matriculation certificate
- Passport
- Driving license, or
- Domicile certificate issued by the central or state government
- An affidavit signed before a magistrate stating the date of birth
