How to Apply PAN Card Online?

 

 

 

 

 

Why PAN?

Income tax Act Mandates having a PAN number for the following persons:

1. A Person whose income exceeds the basic exemption limit. The basic exemption limit is the amount of income for which payment of income tax is necessary. Currently, basic exemption limit is Rs.2,50,000
2. Obtaining PAN is a pre-requisite for Persons entering into a financial transaction above Rs.2,50,000.
3. The Income-tax department also notified certain transactions that require quoting of PAN. These include Sale or Purchase of Motor Vehicle, Opening of a bank account or Demat account, Payment of Insurance premium of more than Rs.50,000 etc.

Insights:

The Income-tax department intends to track the financial transactions about a taxable component made by the public. 

Let us understand this with an illustration:

For example, Mr A files an income tax return with an income declaration of Rs.2,00,000. However, he receives a Salary of 10,00,000 in his bank account during the year. Mr A’s Employer deducts TDS of say 1,50,000 for the year.

Therefore, IT Department tracks these transactions . Tracking is done in two ways:

1. Mr A has to produce his PAN for opening the bank account.
2. While deducting TDS, the Employer will provide Mr A’s PAN. This TDS will reflect in the 26AS of Mr A

Understand the New Terms:

TDS means Tax deduction at source.  Normally, tax payment is due at year-end. However, the employer deducts tax at the income source and remit to the government/income tax department as per the income tax provision

26 AS is a statement that lists all the payments along with tax deduction details . It can be viewed by creating an account with PAN as a user id on the Income tax website.

How to Apply for a PAN Card?

We are trying to provide answer for the query below – how to apply for a PAN Card step by step. Application of PAN can be made in offline and online mode. Let us first understand the offline Procedure.

Procedure:

There are two forms for applying for PAN Card. The form to be chosen depends on the criteria as below.

1. Form 49A – for Indian Citizens/Indian Citizens Outside India/Indian Companies/Partnership Firms
2. Form 49AA – for others, i.e., Non-resident

Choose an appropriate form and fill in the details (manually – in writing). Consider the following instructions and Requirements.

Instructions:

1. Use black Ink to fill the forms.
2. Fill the form with Capital letters/Block letter.

Requirements:

1. Two Recent Colour Photographs (Size 3.5 cm x 2.5 cm)
2. Proof of Identity, address, and Date of birth. Note: Aadhaar card will meet all three requirements.
3. Three Signatures/Left thumb impressions. Two signatures in the space available in the first two pages. Third one across this photo. The third signature shall be partially on the form and photo.
4.  Thumb impression, if used, should be attested.
5. Refer below for updating AO Code.

Who can make attestation?

– Magistrate or

– A Notary Public or a Gazette Officer under official Seal and Stamp.

Delivery Time: Within 15 working days

Delivery Place: Address mentioned in the application form

Note: Applying or Maintaining multiple PAN cards will result in a penalty of Rs.10,000. However, on the other hand, applying for duplicate PAN’s (Another Copy of Same PAN) is different from holding more than one PAN number (More than one PAN number for Same Persons).

What’s the Cost of applying for a PAN Card?

Applying for a new PAN costs Rs.110 for Indian Citizens.