PAN Application Procedure in India: A Step-by-Step Guide

In India, the 10-character alphanumeric PAN, which stands for permanent account number, is imperative for locals as well as foreign nationals and investors doing business in the country. In this article, we highlight the main procedures on how to get a PAN, which transactions mandate having a PAN for KYC purposes, and the government’s rules on financial transactions that require providing the PAN identification.

In India, a Permanent Account Number (PAN) is a unique ten-digit alphanumeric identity assigned by the Indian income tax authorities to every tax-paying entity and individual, including foreign nationals wishing to invest or conduct business in India. It serves as a valid identity proof and is essential for most tax-related and financial purposes.

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The alphanumeric code is computer-generated and unique to the PAN cardholder. This key feature enables the recording of all tax-related information against a single PAN number, which acts as a repository of an individual’s financial information. The tax department uses the PAN number as a universal identification key to monitor financial transactions that may have taxable components, to prevent tax evasion and to ensure compliance with applicable tax laws.

With a PAN card, individuals and non-individuals can purchase and sell assets, conduct financial transactions, and avail government subsidies.

When is it mandatory to obtain a PAN?

For individuals

Although obtaining a PAN is optional and voluntary, it is essential to apply for it since PAN is mandatory for every transaction with the income tax department and most high-value financial transactions. These include opening a bank account, receiving taxable income or professional salary, and buying or selling assets above specified limits, among others.

Under Indian income tax law, certain categories of individuals must apply for a PAN, including:

• Anyone whose total income exceeds the maximum amount not chargeable to tax
• A person who is liable to pay service tax and their agent
• Anyone who carries on any business or profession whose total turnover or gross receipts exceed the threshold limit in a year
• Anyone required to file a return of income
• Every importer and exporter who is required to obtain an import or export code
• Every importer and exporter who intends to register as manufacturers, traders, or service providers in India
• Anyone who intends to enter into specific financial transactions where quoting of PAN is mandatory

Transactions where PAN is mandatory

Every person shall quote their PAN in all documents pertaining to the following transactions specified in Income-tax Rule 114B.

Minor to quote PAN of parent or guardian

Where a minor has entered into any transaction referred to in Rule 114B and does not have any income chargeable to tax, they shall quote the PAN of their father, mother, or guardian in documents pertaining to the said transaction.

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One can apply for a PAN card both online and offline.

Here’s a detailed guide on how to apply for a PAN card online through the Protean eGov Technologies platform or UTIITSL website and offline using Form 49A and 49AA.

How to apply for a PAN card online?

PAN card online through Protean eGov Technologies

• Step 1: Online PAN application on the official portal of Protean eGov Technologies
• Step 2: Select the application type: new PAN for Indian citizens, foreign citizens, or correction of existing PAN data.
• Step 3: Select a category (individual, association of persons, body of individuals, etc.).
• Step 4: Complete the PAN form by entering all necessary information, including name, date of birth, email address, and mobile number.
• Step 5: The user will receive notification of the following step after submitting the form.
• Step 6: Click on the “Continue with the PAN Application Form” button.
• Step 7: The user will be redirected to the new page where they have to submit their digital KYC.
• Step 8: Determine whether a physical PAN card is required and enter the final four digits of the Aadhar number.
• Step 9: Fill up the form’s next section by entering the contact information and other details.
• Step 10: Fill out the section of the form that requires the area code, the type of Assessing Officer (AO) code, and other information.
• Step 11: The document submission and declaration are the last two sections of the form.
• Step 12: To submit the application, enter the first eight digits of the PAN card. The user will get to see the completed form. Click “Proceed” if no modification is required.
• Step 13: Select the e-KYC option to verify using an Aadhaar OTP. For proof of identity, address, and date of birth, select Aadhaar in all fields and click on proceed to continue.
• Step 14: The user will be redirected to the payment section, where they have to make payment either through a demand draft or through net banking, debit or credit card.
• Step 15: A payment receipt will be generated on successful payment. Click on “Continue”.
• Step 16: Now for Aadhaar authentication, tick the declaration and select the “authenticate” option.
• Step 17: Click on “Continue with e-KYC,” after which an OTP will be sent to the mobile number linked with Aadhaar.
• Step 18: Enter the OTP and submit the form.
• Step 19: Now click on “Continue with e-Sign,” after which the user will have to enter the 12-digit Aadhaar number. An OTP will be sent to the mobile number linked with Aadhaar.
• Step 20: Enter the OTP and submit the application to get the acknowledgement slip in pdf format with the user’s date of birth as the password in DDMMYYYY format.

PAN card application through UTIITSL portal

• Step 1: Visit the UTIITSL PAN card application page and under PAN Services, select ‘PAN Card for Indian Citizen/NRI’ 
• Step 2: Click on ‘Apply for a New PAN Card (Form 49A)’ 
• Step 3: Select either the “Physical Mode,” which requires the user to submit the printed-signed application form to the nearby UTIITSL office, or the “Digital Mode,” which allows the user to sign the application form electronically using DSC mode or Aadhaar-based eSignature without submitting the paper copy.
• Step 4: Complete the personal information and other required fields.
• Step 5: Check the accuracy of the information entered and press the “Submit” button.
• Step 6: After verification, proceed to make the payment online by selecting either Bill Desk or PayU India from the list of available payment gateways. The user can use their debit or credit card, net banking, cash card, etc.
• Step 7: Following a successful transaction, the user will receive a payment confirmation.They have the option of saving it or printing it out.
• Step 8: Attach two passport-sized photos (3.5 x 2.5 cm) to the printed form and sign in the space provided.
• Step 9: Submit the application online or mail it to the closest UTIITSL office along with a copy of the identification, address, and date of birth proof documents for processing and issuance of the PAN Card.

How to apply for a PAN card offline?

• Step 1: Obtain a PAN card application from a TIN (Taxpayer Identification Number) facilitation center, a PAN center, or a vendor selling such forms. Please take note that while non-citizens must use Form 49AA to apply, Indian citizens must use Form 49A.
• Step 2: Review the form’s instructions in detail. Afterwards, complete this form by using block letters (in black ink).
• Step 3: Affix two recent color photographs with a white background (3.5 x 2.5 cm). Sign across these photographs so that part of them is on the white paper.
• Step 4: Pay the required fee, depending on citizenship. Foreign residents can only pay via credit card, debit card, or demand draft payable in Mumbai.
• Step 5: Send identity proof, address proof, demand draft, if applicable, and the completed form to the Income-Tax PAN Services unit at the following address:
  • NSDL e-Governance Infrastructure Limited, 5th floor, Mantri Sterling, Plot No. 341, Survey No. 997/8, Model Colony, Near Deep Bungalow Chowk, Pune – 411016

PAN card fees and charges

Documents required for PAN application

The mandatory documents required to apply for a PAN card may be different for different taxpaying entities.

The letter of employment or contract given by the employer must also be presented by a foreign employee in India. Also, the employee’s Indian address must be provided by the company and attested to. An official copy of the employee’s visa is also required.

Editor’s Note: This article was first published in August 2013. It was last updated on March 20, 2023.

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