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PAN Card: What is PAN and How to Apply for a PAN Card Online

Updated on: 03 Feb, 2025 07:25 PM

What is PAN

A Permanent Account Number (PAN) card is a 10-character alphanumeric identifier issued by the Income Tax Department in India. It serves as a proof of identity and is essential for various financial transactions, such as filing income tax returns, opening a bank account, buying or selling assets, and more.

What is a PAN Card?
What is the significance of each character in your PAN card?
Who is eligible to apply for a PAN card?
What is the importance of a PAN Card?
What is the importance of a PAN Card for a non-resident individual?
Documents for PAN
How to apply for a PAN?
Types of PAN Card forms
How to Update/Edit PAN Details?
What happens in case of any contravention relating to PAN?
Frequently Asked Questions

What is a PAN Card?

A PAN card is a unique 10-character alphanumeric identifier issued by the Income Tax Department of India to individuals, companies, Hindu Undivided Families (HUF), and other entities. PAN is used to track financial transactions and prevent tax evasion. The PAN card includes:

Full Name
Photograph
Father’s or Mother’s Name
Date of Birth
PAN Number
Signature

Through your PAN, the Income Tax Department tracks financial transactions, such as depositing money into a Fixed Deposit account above Rs 50,000, buying/selling/renting property, and more.

What is the significance of each character in your PAN card?

For example: ABCPP1234F

- First 3 characters (ABC): These are alphabetic series currently running.
- 4th character (P): Indicates the status of the cardholder (e.g., ‘P’ is for individual, ‘C’ for company).
- 5th character (P): Represents the first letter of the last name of an individual or the first letter of a non-individual’s name.
- Next 4 characters (1234): Sequential numbers.
- 10th character (F): An alphabetic check digit.

Who is eligible to apply for a PAN card?

Individuals
Companies
Non-resident Indians (NRIs)
Foreign citizens with income or investments in India

What is the importance of a PAN Card?

A PAN card is required in the following situations:

When your annual income exceeds Rs. 2,50,000
When TDS (Tax Deducted at Source) is deducted from your income
When you are a professional/businessman with gross receipts exceeding Rs. 5 lakhs per year
When you apply for a credit card or a loan
For opening a new bank account
For making certain high-value transactions (e.g., buying or selling property over Rs. 10 lakh)

What is the importance of a PAN Card for a non-resident individual?

Non-residents are also required to quote their PAN when:

Applying for a credit card or debit card
Paying more than Rs. 50,000 for certain goods or services
Making cash payments over Rs. 50,000 in one day for purchases
Buying foreign currency for travel exceeding Rs. 50,000

Documents for PAN

Proof of Identity (POI): Aadhaar card, Voter ID, Passport, Driving License, etc.
Proof of Address (POA): Passport, Driving License, Electricity bill, Bank statement, etc.
Proof of Date of Birth (DOB): Birth certificate, Passport, Matriculation certificate, etc.

Note: Self-attested copies of these documents are required, and originals should be available for verification.

How to apply for a PAN?

Online Application

You can apply for a PAN card online via the NSDL or UTIITSL website.

Steps for applying via NSDL:

Visit the NSDL website and select ‘New PAN Indian Citizen (Form 49A)’.
Fill in your personal details.
Pay the application fee (via debit/credit card or net banking).
Send the required documents to NSDL’s office.
Once the documents are verified, the PAN card is issued within 15 days.

Steps for applying via UTIITSL:

Visit the UTIITSL website and fill out the PAN application.
Pay the application fee (via debit/credit card or net banking).
Send documents to the UTIITSL office.
UTIITSL processes your request and issues the PAN card in 15 days.

Offline Application

Download Form 49A or 49AA from the NSDL or UTIITSL website, or get a physical copy from a PAN agency.
Fill out the form and attach the required documents.
Pay the application fee (via demand draft or cash).
Submit the form at an authorized PAN agency or send it to the nearest NSDL or UTIITSL office.

Types of PAN Card Forms

Form 49A: For Indian citizens, including changes/corrections in PAN data.
Form 49AA: For foreign citizens.
Form INC-7: For companies that are not registered under the Companies Act, 2013.

How to Update/Edit PAN Details?

Online Update via NSDL (Protean):

Visit NSDL website.
Select “Change/Correction in PAN Data.”
Fill in the required information and upload documents.
Pay the fee and send the acknowledgment slip to NSDL.

Online Update via UTIITSL:

Visit the UTIITSL website.
Choose the “Change/Correction in PAN Card” option.
Upload documents, verify PAN, and make the payment.
Once processed, you’ll receive the updated PAN.

Offline Update:

Download and fill out the PAN correction form.
Submit the form along with the required documents at a PAN center.
Pay the applicable fee.

What happens in case of any contravention relating to PAN?

If you fail to comply with PAN-related provisions under Section 139A of the Income Tax Act, you could face a penalty of Rs. 10,000 for each default. Examples include:

Failing to obtain a PAN when required.
Providing an incorrect PAN in documents.
Providing incorrect PAN to someone who deducts or collects TDS/TCS.