Things to know before applying for PAN

Business

22 Jul 2019

#FinancialBytes: Applying for PAN? Know these points

Permanent Account Number (PAN) is a unique, 10-digit alphanumeric identity allotted to the taxpayers in India by the Income Tax department.

It is essential for undergoing various financial transactions such as receiving taxable salaries/professional fees, sale or purchase of assets, trading of mutual funds, etc. It also serves as an important identity proof.

Here are key points to mind before applying for PAN card.

#1

PAN and Aadhaar can now be used interchangeably

PAN and Aadhaar can now be used interchangeably

The Central government has now made PAN and Aadhaar card interchangeable.

This implies that you can now quote your Aadhaar number, instead of PAN, to file Income Tax returns.

Further, Aadhaar can also be used for other services where quoting of PAN is necessary, such as buying/selling financial instruments like MF, gold etc.

Note: July 31, 2019 is the last date to file ITR.

#2

Your PAN might get deactivated, if not linked soon

Secondly, according to reports, the government is planning to temporarily invalidate all PAN cards that are not linked with Aadhaar latest by August 31, 2019.

The thought behind the move is that the government believes that if after so many extensions, your PAN isn't yet linked with Aadhaar, its authenticity is questionable. Simply put, the government is skeptic that your PAN might be fake.

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#3

It is illegal to apply for/hold more than one PAN

It is illegal to apply for/hold more than one PAN

Notably, those who already having a PAN cannot apply for it again, since possessing more than one PAN card is illegal.

Such application may invite a penalty of up to Rs. 10,000.

However, you can request for changes in PAN card by filling 'Request for New PAN Card or/and Changes or Correction in PAN Data' form.

#4: Case for misleading/fake information in PAN application

Further, according to the procedure laid by the Income Tax department, third-party verifications are carried to check the authenticity of identity, address and documents submitted by applicants for their PAN applications. If any information is found to be misleading/fake, appropriate action is taken.

Procedure

If you don't have PAN yet, here's how to apply

Meanwhile, here's how you can apply for PAN:

First off, visit the official online portal of NSDL for PAN application.

Select the application type and category.

Enter the required applicant details, and click on 'Submit' button.

Next, upload the required documents.

Finally, make the application fee payment.

After successful submission, you will get an acknowledgement number, that can be used to track the application.

Documents needed to apply for PAN card online

Documents required to apply for PAN card online are: 1) a proof of identity such as Aadhaar card/Ration card/Passport, 2) one proof of address, such as DL/Voter's ID card/Passport, and 3) a DoB proof such as Matriculation certificate/Birth Certificate/Aadhaar card/Passport etc.

Linkage

And, here is how you can link your PAN, Aadhaar

And, here is how you can link your PAN, Aadhaar

To link Aadhaar with PAN online, log on to the Income Tax e-portal.

Next, under the 'Quick Links' section, click on 'Link Aadhaar.'

Enter details such as Aadhaar number, PAN, name, and Captcha code.

Submit the details, click on 'Link Aadhaar', and you're done.

After successful verification from UIDAI, the linkage will be confirmed.

You can also link your PAN with Aadhaar via SMS.

You can also link your PAN with Aadhaar via SMS

Apart from the online method, users can also link their Aadhaar with PAN, using SMS service. To do so, type a text message in this format: UIDPAN (space) 12-digit Aadhaar number (space) 10-digit PAN, and send to 567678 or 56161 from your Aadhaar-registered mobile number.

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