A comprehensive guide to understanding PAN cards in India. Find out its importance, application process and answers to frequently asked questions.





The Permanent Account Number (PAN), a computer-based system, provides a unique identification number to every Indian for paying taxes. Through this system, all tax-related information of an individual is recorded in a single PAN number. It acts as the first key to the information repository. This number, which is shared across the country, is unique. The number that one has is not the same as another. 

What is a PAN card?:  It is a 10-digit unique identification number. It is issued by the Income Tax Department. Although it is just a number, the PAN card also contains your PAN along with your name, date of birth, father's or spouse's name and photograph. Therefore, copies of this card can be used everywhere as proof of identity or date of birth. 

Types of PAN Card:  PAN cards are also issued to various tax paying entities. Based on that, PAN card is categorized as follows. 

• PAN card issued to Indian individuals


• PAN card issued to Indian companies


• PAN for foreign citizens


• PAN for foreign companies

PAN cards issued to individuals contain the individual's photograph, name, father's or spouse's name, date of birth, signature, authentication hologram, QR code, date of issue of PAN and permanent account number. PAN cards issued to companies contain the company's name, its registration date, PAN number, hologram, QR code and date of issue of PAN. It does not contain a photograph or signature.

Why is PAN card important in India?:  PAN card has its own special place in India as it is essential for all financial transactions of a taxpayer. It is used to track the inflow and outflow of money. This number plays an important role while paying income tax, receiving tax refunds and receiving communication from the Income Tax Department. 

In the Union Budget 2019, it was proposed that those without PAN can use their Aadhaar number to file income tax returns and for all other purposes for which PAN was mandatory earlier. This means that if you have not yet linked PAN with Aadhaar, or if you do not have PAN but have Aadhaar, you do not need to link PAN and Aadhaar or apply for a new PAN card. However, the rules regarding this are still under formulation/updating/approval.

However, there are many uses for this number, with PAN still being used as a necessary proof of identity for a large number of financial transactions.

How to apply for a PAN card?



PAN card application can be done online on one of the following websites:

You can apply for a PAN card on the websites of Protean e-Gov Technologies Limited (formerly NSDL) and UTIITSL. You can also apply offline at PAN agencies in district headquarters. Apart from applying for a new PAN card, you can also make corrections. Or you can change the information online yourself. If you lose your PAN card, you can apply for a duplicate PAN card and also send a request for reprinting. 

For a new PAN, Indian citizens and non-resident Indians (companies, NGOs, partnerships, local bodies, trusts, etc.) have to fill Form 49A. Foreigners and foreign entities have to use Form 49AA. These forms along with all the required PAN documents have to be submitted to the Income Tax PAN Service Unit.

After you apply for a new or duplicate PAN or request for corrections/changes, you can track the status of the PAN application through the acknowledgement number provided.

According to the Proton e-Gov Technologies Limited (formerly NSDL) website, the entire process of printing and shipping the cards takes approximately 2 weeks or 14 days.

Required Documents

To apply for a PAN card, several documents need to be submitted, including Form 49A or 49AA. What are they? 

If you are an individual applicant

• Proof of identity like Aadhaar, Voter ID Card, Driving License etc.


• Proof of address such as utility bill, water bill, bank account statement, your credit card statements, passport, driving license, government-issued residence certificate, marriage certificate, matriculation certificate, etc.

If you belong to a Hindu Undivided Family (HUF)

• You need to submit an affidavit from the head of the HUF. The affidavit should clearly mention the name, address and the name of each relative's father.


• If you belong to a HUF and are applying for a PAN card individually, you will need to submit proof of identity, proof of address, and proof of date of birth.

For companies registered in India

• A copy of the registration certificate issued to companies must be submitted.

Registered Companies and Partnership Firms in India: 

• A copy of the company's registration certificate and partnership deed must be submitted.

Trust created or not registered in India

• A copy of the registration certificate issued by the Endowment Commissioner must be submitted.

Trust or registered associations: 

• A copy of the agreement or certificate of registration number issued by the Registrar of Cooperative Societies or the Endowment Commissioner, or any other document issued by the Central or State Government clearly mentioning the address and identity.

What if you are not a citizen of India? 

• Identity proof like PIO (Person of Indian Origin) copy issued by the Government of India, OCI (Overseas Citizen of India) copy issued by the Government of India, passport copy etc.


• Address proof can be a bank statement from the country of residence, NRE bank statement, copy of visa issued by an Indian company, registration certificate issued by the FRO, etc.

Use of PAN in financial transactions

• PAN must be quoted while paying direct taxes. It is also mandatory for taxpayers to quote this number while paying income tax. 


• While registering a business or company, PAN information needs to be provided.


• Many financial transactions require PAN information. Some of these transactions are:

What is the use of PAN? 

• The PAN card contains name, age and photograph. It can be used as a valid identity proof across the country.


• PAN is the best way to track your tax payments. Otherwise, you may have to pay your tax payments multiple times as they cannot be verified.


• Since PAN is unique to each entity, its misuse for tax evasion or other fraudulent purposes is impossible.


• PAN card can be used to get utility connections like electricity bill, telephone, LPG and internet.

Who should get PAN?

Under Section 139A of the Income Tax Act, the following taxable entities are required to have a Permanent Account Number:

Everyone who has paid tax or is liable to pay tax to the Income Tax Department must have a PAN. The slabs are determined on the basis of.

Any person carrying on a business or professional practice with an annual turnover exceeding Rs.5 lakh in any assessment year.

Importers and exporters who are liable to pay any kind of tax or duty charges as per the Income Tax Act or any law for the time being



:

• All types of trusts, charities and associations.


• All tax paying entities - minors, individuals, HUFs, partnerships, companies, bodies of persons, trusts and others - must apply for PAN.

What is the validity of the card?

• Despite any change in address, your PAN card remains valid for life.

What happens if you don't have a PAN card?

• Even if you have taxable income but do not have a PAN, you will have to face these consequences. 


• A flat 30% tax on your earnings and wealth as determined by the Income Tax Department of India. This rule applies to individuals, companies and all entities eligible for tax, including foreign nationals and entities registered outside India. 


• Other activities include not being able to purchase a motor vehicle, immovable property worth more than Rs. 10 lakh, or open a bank account.


• It is difficult to conduct a large part of their financial activities and collections without a PAN. However, Aadhaar card is considered valid and can be done even without a PAN. 

What should and shouldn't be done when applying for PAN?

• Fill in all the details as per the identity and address proof documents you are submitting.


• To avoid rejection of the application, get your fingerprints authenticated by a magistrate/notary before submitting the form.


• Provide contact details with full address on the form.


• Fill out the application form in capital letters.


• Do not make any corrections anywhere on the form or write anything more than necessary.


• Do not use initials in the first name or last name columns.


• Do not apply for a new PAN card if your old PAN card is lost/stolen/defaced. Instead, request for a duplicate PAN.


• Please use 'Form 49AA' while requesting PAN allocation.


• Attach two recent color photographs measuring 3.5 cm X 2.5 cm.


• As per Rule 114(4) of the Income Tax Rules, 1962, please enclose Proof of Identity (POI) and Proof of Address (POA). The POA should include the address listed in the application.


• Fill in Column 14 of the application form with the representative valuer information (if applicable to you).


• If appointing a representative valuer, provide their proof of identity and address proof.


• Include your phone number and email address in the application form.


• Enter the correct PIN code in the address field. 


• Never staple or pin a portrait. 


• Never submit address proof or identity proof that is not in the applicant's name.


• Make sure you are not using initials or abbreviating your name.


• Do not fill in any other information like date, designation, rank, etc. except your signature.


• Make sure to put your signature inside the box.

PAN card is an important document that you can use for various purposes. It is not only a nationally accepted proof of identity, but also an important document while filing income tax (IT) returns. Apart from this, it can be used to carry out various personal and business transactions.

What transactions can be done if you have a PAN card? 

• Opening a bank account


• Filing IT returns


• Applying for a loan


• Applying for a gas or telephone connection


• Buying or selling a new property


• Getting a debit card or credit card


• Opening a fixed deposit account


• To pay insurance premium.

Risks of having multiple PAN cards

Multiple or duplicate PAN cards refer to the issuance of more than one PAN card or PAN number to the same person. As per Section 139A(7) of the Income Tax Act, no person can apply for, hold or obtain more than one Permanent Account Number under the new series.

It is possible for a person to have more than one PAN without knowing it. However, it is not illegal to have two physical copies of the same PAN card number; the second one is simply considered a duplicate copy.

How to detect the use of PAN in a transaction? 

• Transactions made through PAN card can be tracked for tax calculation. Known as Income Tax Business Application-Permanent Account Number or ITBAN-PAN, this allows the Income Tax Department to track every transaction made by those who have quoted a particular PAN number.


• All financial transactions like mergers, acquisitions, bankruptcies and PAN combinations as well as disposal information mentioning a particular PAN card can be traced through the software.


• All existing PAN information and a complete database of PAN information are also included in this software.

PAN, some other information 

• As mentioned above, PAN is a combination of 10 characters, which looks like this, 


• The first 3 letters can be any English alphabetic scheme. The fourth letter is an alphabet indicating the category of the taxpayer. The categories are as follows:

A - Association of Persons

B - Body of Persons (BOI)

C - Company

F - Firm

G - Government

H - Hindu Undivided Family (HUF)

L - Local Authority

J - Artificial Judicial Person

P - Individual

T - Trust for Association of Persons (Trust)

- The fifth character is also an alphabet which indicates the first letter of the cardholder's surname.

- The next four numbers are given randomly. 

- The last character is also another alphabet.

New Design

The Income Tax Department has given a new format to PAN cards issued after January 1, 2017. The changes made to the new PAN card design are as follows...

• A QR code is printed on the new PAN card. It contains the details of the cardholder. This QR code can be used for data verification.


• New sections have been added for cardholder name, father's name, and date of birth.


• The signature of the PAN and card holder has been changed.

PAN Card Forms

To apply for a PAN card, an application form has to be filled. There are two types of application forms - Form 49A and Form 49AA. Both the forms can be obtained through online and offline platforms.

Form 49A - Indian individuals or organizations use Form 49A to apply for a PAN card. Students and minors can also apply for a PAN using this form.

Form 49AA - Form 49AA is the form used by foreigners to apply for PAN.



The forms should be filled in correctly and sent to the TIN-Protein e-Gov Technologies Limited office.

Cost of PAN Application

An individual can apply for his/her PAN card online. This can be done through the website of Proton e-Government Technologies Limited (formerly NSDL) or the UTITSL portal. The cost of applying for PAN can be summarized as follows:

For an address within India: Rs.93 (excluding GST)

For a foreign address: Rs.864 (excluding GST)



How to make changes or corrections in PAN card?

Here are the steps to follow if you want to make changes or corrections in PAN card online; 

• Visit the official site


• Select 'Changes or Correction in existing PAN Data/ Reprint of PAN Card (No changes in existing PAN Data)'.


• Next, enter the relevant details.


• Click 'Submit'.


• The token number will be displayed on the screen.


• Click on 'Continue with PAN Application Form',


• Enter the relevant details on the next page.


• Next, choose the method by which you want to submit the application form.


• Next, choose the type of pan.


• Next, you must enter your contact details.


• Upload relevant documents.


• Click 'Submit'.


• Fees must be paid. 


• The PAN will be sent to your address within two weeks from the date of receipt of the application.

How to apply offline?

• Visit the official website of TIN-Protean e-Gov Technologies Limited (formerly NSDL) by clicking on the link


• On the home page, under the 'Downloads' section, clicking on 'PAN' will redirect you to a new page.


• Click on 'Form 49A'.


• The Form 49A application form will appear on your computer screen in PDF format. Download the form and take a printout.


• Fill out the form and make sure all the details you have entered are correct.


• Make sure you have attached all the necessary documents, including your passport-sized photograph.


• You will have to pay the registration fee which can be paid through Demand Draft in favour of 'Protein e-Gov Technologies Limited – PAN' payable at Mumbai. You will have to pay Rs.115.90.


• Enclose the application form and copies of your documents in an envelope. Do not forget to mention 'APPLICATION FOR PAN-N-Acknowledgement Number' on the envelope. It should be sent to this address

Address: Income Tax PAN Services Unit, Protean e-Governance Technologies Limited e-Governance Infrastructure Limited, 5th Floor, Mantri Sterling, Plot No. 341, Survey No. 997/8, Model Colony, Near Deep Bungalow Chowk, Pune - 411016.

You will then receive an application number that you can use to track the status of your PAN card application.

How to apply for a duplicate PAN card?

If you have lost your original PAN card, you should apply for a duplicate PAN card as follows:

• To apply for a duplicate PAN card, visit the TIN-Protean e-Gov Technologies Limited (formerly NSDL) or UTIITSL website.


• If you are a citizen of India, you will have to file Form 49A, otherwise, if you are a foreigner, you will have to file Form 49AA.


• Complete the required payment to apply for a duplicate PAN card. You can also pay through Demand Draft. 


• Take a printout of the form and send it to the address given below:


• Address - Income Tax PAN Services Unit, Proton e-Gov Technologies Limited e-Governance Infrastructure Limited, 5th Floor, Mantri Sterling, Plot No. 341, Survey No. 997/8, Model Colony, Near Deep Bungalow Chowk, Pune - 411 016. You will receive an application number. You can use it to track your PAN card application. 


• It will take you up to 45 days to receive your duplicate PAN card.

PAN Card Enquiry/Tracking and Online Status Check

You can check your PAN card status online after submitting the application. The application status will show you whether the card has been issued or dispatched.

• You can check the status of your PAN card application on the TIN-Protean e-Gov Technologies Limited or UTIITSL website.


• The status of the PAN card application can be found by entering the name and date of birth on the website.

Which authority issues PAN card in India?

PAN card is issued by the Income Tax Department with the help of authorized district level PAN agencies, UTI ITSL (UTI Infrastructure Technology and Services Limited) and Protean e-Gov Technologies Limited (formerly National Securities Depository Limited-NSDL). There are several TIN-facilitation centers and PAN centers run by Protean e-Gov Technologies Limited across the country that help citizens get their PAN card.

The PAN issuance process will operate on a PPP (Public Private Partnership) model. This system aims to ensure efficiency, effectiveness and economy in handling, processing and issuing PAN applications. 

How to share PAN?

• Once you submit your PAN application with the filled form and required documents, the PAN center will verify it along with the original documents.


• For the online process, you need to submit the form online and then send the self-attested copies of the documents to Protean e-Govern Technologies Limited, Pune.


• The assessing officers will assess the application details. Your details will be matched with the details of existing PAN card holders in the central database. 


• If there are records of previous PAN, the request will be accepted and processed. You will be allotted a PAN as per your taxpayer classification.

What do the letters and numbers on your PAN card stand for?

They are not a series of numbers and letters in your permanent account. The structure of a PAN is actually quite interesting. Here is what each component of a PAN means:

• First three letters: These are in the alphabet from AAA to ZZZ. 


• Fourth letter: Indicates the type of taxpayer.


• Fifth letter: The fifth letter in the PAN is the first letter of your surname. So, if a person is named 'Rajesh Khanna', the fifth letter of his PAN will be 'K'.


• Sixth to ninth characters: These will be numbers between 0001 and 9999. 


• Last letters: This is the check letter of the alphabet.

History of PAN in India

Before the introduction of the PAN concept, taxpayers were allotted a handwritten GIR number. It was only available within a ward or under a particular assessing officer. Since GIR was not a unique number, miscalculations and errors in tax assessment were inevitable. 

• The GIR number was issued by the Assessing Officer to the taxpayer and contained the information of the Assessing Officer.


• In 1972, the Government of India introduced the concept of PAN. It was made statutory under Section 139A of the Income Tax Act, 1961. Initially a voluntary process, PAN was made mandatory for all tax payers in 1976.


• Initial PAN number allocations were done manually and to avoid duplication, specific numbers were given on a ward/circle basis. This system was discontinued in 1995.


• Despite these changes, the first incarnation of the PAN card faced some difficulties as mentioned below:


• There was no database to maintain records of the PAN numbers allocated, very limited information was recorded.


• The data collected for PAN card holders was not properly structured or detailed information was not recorded except for some basic details like name, address etc. 


• There was no central authority to issue PAN cards, which meant that different centres could allocate the same number to different individuals across the country. Also, since it was address-based, it was difficult to get a permanent number. 

PAN Card Creation

As per KYC guidelines, the details provided in the PAN card are as follows:

• Cardholder name


• Cardholder's father's name


• Cardholder's date of birth


• 10-character alphanumeric Permanent Account Number or PAN


• Cardholder's signature


• Cardholder's photo


• The PAN card comes with the Government of India logo and hologram, as well as an Income Tax Department (ITD) tag.

Overview of the New PAN Series

In 1995, under the amended section 139A of the Income Tax Act, the Income Tax Department rolled out the new PAN series. The new PAN series facilitated the following features that were not included in the PAN series earlier:

• Linking all tax-related information, current and past, to a single number.


• Easy retrieval of information from the central database. With the launch of the new PAN series, data segregation and recording has been made more efficient.


• Consolidating all financial information into a single PAN helps track loan details, credit and debit details, and investment details, and helps prevent tax evasion.

Similar concepts to PAN card

TAN (Tax Deduction and Collection Account Number):  It is a unique 10-digit number issued to individuals and entities who collect or are required to deduct tax on payments made as part of tax deducted at source (TDS) under the Income Tax Act. TAN must be quoted while applying for TDS or Tax Collected at Source (TCS) challans for refunds and issuance of certificates. Failure to quote TAN will attract a penalty of Rs.10,000.

TIN (Taxpayer Identification Number):  TIN is a unique 11-digit number used to identify distributors registered under Value Added Tax. It is mandatory for all manufacturers, traders and distributors from different states to register for TIN. This number must be quoted by the distributing and receiving company while creating invoices, orders or references. It is also used to identify taxpayers under the Income Tax Act, 1961.

Permanent Account Number (PAN) for e-KYC

You can use your PAN for e-KYC. e-KYC is a key requirement asked by most service providers and it offers many benefits. Here are some of the benefits of PAN e-KYC...

• Faster processing: PAN e-KYC allows information to be shared with service providers within minutes through secure channels. This speeds up the process.


• Being a paperless process, PAN e-KYC handles documents and information without any hassle. 


• Authorization: The authorized data shared through PAN e-KYC is legal and acceptable across the country for those involved in the transaction.


• Secure data: Data transferred between the cardholder and the service provider is not subject to tampering as it is transferred only through secure channels. In addition, the data cannot be used without the consent of both parties involved in the process.

However, it is mandatory to link your Aadhaar and your PAN for the purpose of e-KYC and verification, which will help you avail services and benefits from various service providers.

FAQs on PAN Card

How long is PAN valid after allotment?

Permanent Account Number or PAN is valid for life. Once it is issued to the user, it does not change during their lifetime.

How can I correct the information in the PAN database?

Visit the official Proton e-Gov Technologies Limited (formerly NSDL) portal and log in using the required credentials to make changes to your PAN.

How to fill PAN application form?

The application form for PAN card should be filled clearly in English. Capital letters and black ink (preferably) should be used to update the details. Make sure that you read all the instructions carefully before filling the form.

Where to submit PAN card application form?

After filling the PAN card application form correctly and self-attesting it, it can be submitted along with all the relevant documents to any of the PAN centers or TIN-FCs operated by Proton e-Gov Technologies Limited (formerly NSDL).

What is the fee to be paid when submitting Form 49A for PAN card?

If the address is within India, the PAN card processing fee is Rs.110, i.e., Rs.93 (application fee) + 18% GST.

 If the address is outside India, the PAN card processing fee is Rs.1,020, i.e., Rs.93 (application fee) + Rs.771 (transmission charges) + 18% GST.

Is it necessary to mention email ID or phone number in the form?

It is mandatory for all applicants to provide their email ID or phone number in the PAN application form so that they can be contacted in case of any discrepancies. This is also useful when the applicant receives the PAN through email.

Can I correct the information in my PAN card?

Yes, it can be corrected.

How to change the photograph on the card?

If the photo on the PAN card is blurry, you can replace the PAN card with a better quality and clear photograph. This facility is available as part of 'PAN Card Correction' requests. This can be done in the same way as name change and date of birth change. You can visit the website https://tin.tin.nsdl.com/pan/ and fill the 'PAN card change request form'. The relevant documents should be sent to the address mentioned in the form.

To get a PAN card, can I write an application on plain paper?

No, a handwritten application cannot be submitted for a PAN card. The application will be accepted only in the format prescribed by the Central Board of Direct Taxes. The relevant forms are: For Indian citizens, Form 49A, For foreign citizens, Form 49AA.

Is having more than one PAN card a punishable offence?

Yes. Having two PAN cards is punishable with a penalty of Rs. 10,000 under Section 272B of the Income Tax Act, 1961.

Is it necessary for a married/widowed/divorced woman to include father's name in the application form?

All female applicants, irrespective of their marital status, should include only their father's name in the PAN application form. There is no need to update the form with husband's name.

Can I apply for more than one PAN?

No, it is not possible to have more than one PAN. Only one PAN is issued to each person.

Will I get an acknowledgement when I submit my PAN application form at TIN-FC?

Yes, you will receive an acknowledgement containing a unique 15-digit number.