Permanent Account Number (PAN)

From 1 January 2005 it has become mandatory to quote PAN on challans for any payments due to Income Tax Department.Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the IT Department.It is mandatory to quote PAN on return of income, all correspondence with any income tax authority.

If a PAN is allotted to a person, then he cannot apply for obtaining another PAN.A person cannot hold more than one PAN. A penalty will be imposed under Section 272B of the Income-tax Act, 1961 for having more than one PAN.

It is an electronic system through which, all tax related information for a person/company is recorded against a single PAN number. It acts as the primary key for storage of information and can be shared across the country. Hence no two tax paying entities should have the same PAN.

Who can apply for an e-PAN?

The following criteria should be fulfilled to apply for an e-pan card:

  • You must be an Indian resident
  • You must be an Individual taxpayer (i.e. not a company or a HUF)
  • You must not already hold a PAN
  • You must have an Aadhaar Card
  • You must have an active mobile phone number linked with your Aadhaar and
  • Your Aadhaar must have your updated and correct details

Eligibility criteria for PAN

PAN Card is issued to individuals, companies, non-resident Indians or anyone who pays taxes in India.

Types of PAN

  • Individual
  • HUF-Hindu undivided family
  • Company
  • Firms/Partnerships
  • Trusts
  • Society
  • Foreigners

Do’s and Don’ts while Filling up PAN update Form

  • The form must be filled using only capital letters
  • Fill in all the fields for updating
  • Mobile number is compulsory for any updates to take place
  • Fill the form in English and the local language used at the time of enrollment
  • Make sure the form is filled only with current and relevant details
  • Names must not have salutations such as Mr / Mrs / Ms / Dr
  • Make sure that the full and complete address is filled for the PAN to be dispatched to the address
  • Enter name clearly with signature or thumbprints when self-attesting supporting documents
  • Attach relevant documents that support the required update only
  • Incorrect information and lack of support documents will cause the application to be rejected