PAN

1. What is Permanent Account Number (PAN)?

Ans.

PAN is a ten-digit alphanumeric unique identification number (commonly known as PAN card), issued by the Income Tax Department (ITD) of India.


The PAN allotted to a person shall be PERMANENT and will not change with update of details (i.e. name, address, etc.) of the PAN holder or change of PAN Jurisdictional Officer.

2. Who issues PAN card?

Ans.

The ITD has duly appointed and authorized below 2 service providers for processing, issuance and printing of PAN cards:-

1.    UTI Infrastructure Technology And Services Limited (UTIITSL),

2.    NSDL e-Governance Infrastructure Limited (NSDL e-Gov)

3. How PAN is issued?

Ans.

PAN is issued in 2 different forms by the authorities:-

  • e-PAN card - e-PAN is electronic form of PAN card which is shared on the registered email ID provided on the application form of the applicant.
  • Laminated/Physical card - Laminated PAN card is a physical copy of PAN delivered at the communication address i.e. either residential/ office/ Representative Assessee’s (RA) depending upon the option selected by the applicant.

4. Is Aadhaar mandatory for PAN?

Ans.

Individuals who are Indian citizen residing within or outside India and if wish delivery of PAN card within India, then providing Aadhaar is mandatory for them.

5. Are there any transactions that require mandatory allotment / quoting of PAN?

Ans.

PAN is required for executing many transactions in India. Below are some of the transactions where quoting of PAN is mandatory -

 

1.    Opening of Bank account,

2.    Opening a Demat Account with a depository,

3.    For investing in securities i.e. Initial Public Offers, Portfolio Investment Schemes and Portfolio Management Schemes, Mutual Funds,

4.    For Sale or purchase of immovable property

5.    Filing of Income Tax Return, payment of tax

6.    ALL other transactions as specified in Rule 114B. Please click on link to access the rules: //incometaxindia.gov.in/pages/rules/income-tax-rules-1962.aspx?key=114b&key=114b


6. What procedure should be followed to apply for a PAN?

Ans.

PAN application can be made online/ manually in prescribed form along with supporting documents for proof of identity and address to the PAN Authority.


Further, in case of NRIs, there may be certain unique situations where documents may need attestation by the Indian Embassy/ Consulate/ High Commission/ Apostille. In certain cases, an Individual can digitally sign the PAN application form by using a DSC.


We provide services for PAN application, PAN correction/ Duplicate. For any assistance/ information on PAN related matters, you may write to: panhelpdesk@gpkapadia.com.

7. What is the general timeframe to obtain PAN card?

Ans.

Once the original signed PAN application form is submitted to the relevant authority, timeframe to receive PAN card is as under -

  • e-PAN – within 10-12 working days, and

  • Physical card (Laminated) – within 25-40 working days (depending on whether delivery is within India or outside India

8. Is there any expedited/ TATKAL facility available for PAN?

Ans.

No such facility is available at this time.

9. Is father’s name mandatory to mention on the PAN application form?

Ans.

No, father’s name is not mandatory in cases where mother of the applicant is a single parent.

10. Can a person get his/her mother’s name printed on the PAN card even they have mentioned the father’s name?

Ans.

Yes, mother’s name can be printed on PAN card (even though father’s name is mentioned) by selecting appropriate option on the PAN application form.

11. Are all entities entitled to obtain PAN card?

Ans.

As per updated Income Tax Rules, 1962; all Entities are mandatorily required to obtain PAN card even if the total sales, turnover or gross receipts are not likely to exceed Rs. 5 lakh in a Financial Year (i.e. from 1st April to 31st March every year).

12. Is photograph mandatory for making an application for PAN?

Ans.

A photograph is mandatory only in case of individual (above age of 18) applicants.

13. Is minor allowed to hold a PAN card?

Ans.

Yes, minor can hold PAN card. The minor will have to apply through a Representative Assessee and have to submit additional documents along with the PAN application form. Further, photograph of minor shall not be printed on the PAN card.

14. Who can apply on behalf of a NRI - minor, lunatic, idiot and court of wards?

Ans.

A NRI who is a minor, lunatic, idiot and court of wards and such other persons may be represented through a Representative Assessee. In such cases, application for PAN can be made by the Representative Assessee.

15. Can a person hold more than one PAN?

Ans.

No, obtaining or possessing of more than one PAN is against the law, for which a penalty of Rs. 10,000/- may also be imposed.

16. Can a person apply for a duplicate PAN Card, if his original PAN Card is lost/ stolen?

Ans.

Yes, a person may apply for a duplicate PAN Card in case his original PAN Card is lost/ stolen. A duplicate PAN Card is issued with the same PAN number.

17. Are there any adverse consequences of not holding a PAN?

Ans.

It is advisable for NRIs to hold PAN in India and to quote the same with the payer of income in order to avoid deduction of tax at higher of the following rates:-

  •  20%; or
  • Rates specified in relevant provision of the Act; or

  • Rates in force [i.e. rates mentioned in the Finance Act or rates as per DTAA (Double Taxation Avoidance Agreement)]

However, there is relaxation provided by the Income Tax Department wherein an individual can provide details to payer of income and avoid higher deduction of tax.

18. Is it mandatory to file Income Tax Return in India if NRI obtains a PAN Card?

Ans.

It is not mandatory for NRI to file Income Tax Return in India just because he/ she holds a PAN Card. If the NRI is earning income below the taxable limit (subject to certain conditions), he/she may not be required to file his/ her Income Tax Return in the relevant FY.




Updated 10/2022

19. What steps are to be taken when PAN becomes Inoperative?

Ans.

PAN status of NRI is showing as inoperative on account of non-linking of Aadhaar with PAN. However, as you may be aware, NRIs are not required to obtain Aadhaar and/or link it with their PAN. Accordingly, it is important to inform your NRI status to the Tax Department. Accordingly, you make take the below steps (as applicable):

1.    Migrate PAN from domestic tax ward to International Tax ward.

2.    Update citizenship and Residential status on e-filing income tax portal

3.    Income your Assessing officer to update your citizenship and NRI status in Income Tax database.

20. Why there is an issue of restricted refund on Income tax e-filing portal?

Ans.

You may note the Restricted Refund issue arises due to the Name mismatch between PAN and Bak records. It is advisable to synchronize all the documents (such as passport, bank statement, PAN card etc.) i.e., the name should match on all documents. Generally, in our experience the Bank updates name as per passport. Accordingly, if the Passport and Bank statements matches, you may get your PAN card corrected or In case all the documents matches you may ask your Bank to re- do the KYC in order to ensure no problem is raised in future to claim a refund.

 

 

Updated 09/2023