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How to apply for PAN Card for free?

Updated: Jun 4, 2020

A permanent account number (PAN) is a ten-character alphanumeric identifier, gave as an overlaid "Container card", by the Indian Income Tax Department, to any "individual" who applies for it or to whom the office apportions the number without an application.

A PAN is an interesting identifier given to every legally recognizable thing or person under the Indian Income Tax Act, 1961. The personal assessment PAN and its connected card are given under Section 139A of the Income Tax Act. It is given by the Indian Income Tax Department under the oversight of the Central Board for Direct Taxes (CBDT) and it additionally fills in as a significant confirmation of distinguishing proof.

PAN card can be issued by a taxpaying firm such as HUF, Partnership firm, sole proprietorship, trust, etc. and also by a taxpaying person or individual above 18 years of age.

In this article we will explain you the following topics

  1. What is the need of PAN card?

  2. What does the 10 digits of a PAN card stand for:

  3. Documents required for the application of PAN Card

  4. What are the types of PAN cards?

  5. Advantages of PAN card

  6. A. How to apply for PAN card through NSDL Site B. How to apply for PAN Card for Free

1. What is the need of PAN Card?

You need PAN Card if you want to involve yourself into following transactions:

  • Sale or buying of enduring property esteemed at Rs 5 lakh or more

  • Sale or purchase of a vehicle other than a bike

  • Payment to restaurants a sum surpassing Rs 25,000 at any one time

  • Payment in real estate money a sum surpassing Rs 25,000 regarding travel to any remote nation

  • Payment of Rs at least 50,000 to the Reserve Bank of India for obtaining bonds

  • Payment of Rs at least 50,000 to an organization or an establishment for getting bonds or debentures

  • Payment of Rs at least 50,000 to an organization for obtaining shares

  • Deposit Rs 50,000 with any single financial foundation in 24 hours.

  • Payment Rs 5 lakh for acquisition of bullion and gems

2. What does the 10 digits of a PAN card stand for:

PAN card has holders photo, signature, name, a QR code, DOB, Father’s name and a 10 – digit alpha numeric number. PAN Card number follows the following structure :

  • First three characters – they are three alphabets from A to Z

  • Fourth letter – it is the category of tax payer where the initial letter states as follows

A – Association of people

B – Body of an Individual

C – Company

F – Firm

G – Government body

H – Hindu undivided family (HUF)

L – Local person

J – Artificial judicial person

P – individual person

T – Trust

  • Fifth letter – is the initial of the holders surname

  • Last 5 digits – are random numbers based on the series allotted

3. Documents required for the application of PAN Card

  1. Identity Proof which can be any one of the following:

  • Any govt. issued ID – Aadhar, DL, Voter ID, etc.

  • Arm’s License ( if you possess )

  • Pensioner Card which contains the applicant’s photograph

  • A photo ID card which is issued by Central Government, State Government or a Public Sector Undertaking

  • Central Government’s Health Scheme Card or Ex-Servicemen’s Contributory Health Scheme Photo Card ( in case you work with an government organization)

  • An original bank certificate which is issued on the bank’s letterhead from the branch of the bank and attested by the issuing officer. Such a certificate should contain an attested photograph of the applicant along with the bank account number.

2. An address proof which can be a copy of any one of the following:

  • Electricity, landline or broadband connection bill

  • Postpaid mobile phone bill

  • Water bill

  • LPG or piped gas connection bill or Gas Connection book

  • Bank account statement

  • Credit card statement

  • Deposit account statement

  • Post Office account Passbook

  • Passport

  • Voter’s ID Card

  • Driving License

  • Property registration document

  • Domicile certificate issued by the Indian Government

  • Aadhar Card

  • Original certificate from the employer provided that the employer is a reputed public or private corporation

  • Date of birth proof which can be a copy of any one of the following:

  • Birth certificate which is issued by the Municipal Authority or any authorized authority

  • Matriculation certificate

  • Pension Payment order

  • Passport

  • Marriage certificate issued by Registrar of Marriages

  • Driving license

  • Domicile certificate issued by the Indian Government

3. In case of a Business entity other than individual following things need to be taken care of

  • For HUF – affidavit signed by the karta and id proof of karta

  • For company – registration certificate from the registrar

  • Partnership firm – partnership deed and partners documents

  • Trust – trust deed and certificate number registration issued by the charity commissioner

  • Association – agreement and registration number certificate

4. In case you are an NRI

  • Passport copy

  • Copy of PIO card issued by the Indian Government

  • Copy of OCI Card issued by the Indian Government

  • Copy of other national or citizenship Identification Number or TIN attested by applicable ‘Apostille’, Indian Embassy, High Commission or Consulate where the applicant is based.

  • Address proof can be any one of the following:

  • Passport copy

  • Copy of PIO card issued by the Indian Government

  • Copy of OCI Card issued by the Indian Government

  • Copy of other national or citizenship Identification Number or TIN attested by relevant ‘Apostille’, Indian Embassy, High Commission or Consulate

  • Copy of bank statement of the residential country

  • Copy of NRE bank statement in India

  • Copy of resident certificate or Residential permit

  • Copy of registration certificate issued by FRO

  • Copy of VISA granted and appointment letter from any Indian company

4. What are the types of PAN cards?

  • PAN Card for Individuals – This is the most widely recognized variation of the PAN Card that is given to people. This card is applied through Form 49A accessible online through the NSDL and UTIITSL sites. People incorporate any inhabitant Indian including minors and understudies as they are additionally qualified for a PAN card.

  • PAN Card for Non-Resident Individuals or Persons of Indian Origin – NRIs and PIOs can benefit a PAN Card with the end goal of tax collection in India. They also would need to submit Form 49A for benefiting this card.

  • PAN Card for remote substances paying duty in India – Firms or corporates which are enrolled outside India yet pay charge in India by excellence of their business tasks led in India can likewise benefit a PAN Card. They would need to fill and submit Form 49AA as a component of the PAN card application process.

  • PAN Card for OCI and NRE – Abroad Citizens of India and Non Resident Entities can likewise apply for a PAN Card. The pertinent structure which ought to be rounded out by them while applying for the PAN card is Form 49AA.

  • PAN Card for Indian Companies – Firms and corporate substances enlisted just as working in India can likewise apply for a PAN Card for their budgetary and expense related exchanges.

5. Advantages of PAN card

  • Character confirmation: A PAN card is generally acknowledged as a substantial recognizable proof evidence. It is a believed distinguishing proof record for every single monetary foundation and different associations.

  • IT Return documenting: All people who are qualified to pay personal expense should record their IT returns. For documenting IT returns, one ought to have the PAN card. It is a mandatory record for documenting IT returns.

  • Opening a financial balance: All the co-employable, open and private banks have made it compulsory for a person to have a perpetual record number (PAN) so as to open an investment funds or a present record.

  • Buy and offer of property - Perhaps the best advantage of PAN card is that it is acknowledged in conventions required during purchasing or selling unflinching resources. A PAN card is required for an exchange esteemed Rs. 10 lakhs or more.

  • For Startups - In request to begin a business or an organization, it is compulsory to have a PAN card for the sake of the association.

  • For check and Pay request - A PAN card is basic while mentioning for a compensation request, bank checks and drafts. On the off chance that an individual is executing more than Rs. 50,000 then he/she will require the PAN card to finish the exchange.

  • Restaurant and inn bills payment - If you’re lodging or café bill surpasses Rs. 50,000 then for taking care of the tab you will require a PAN card.

  • To open a demat account – An individual ought to have a PAN card to open a demat account, which is utilized to hold partakes in the dematerialized structure.

  • For tax assessment and filing - A PAN card enables the Income to burden Department to evaluate an individual or element's fiscal exchanges. It helps in distinguishing people engaged with tax avoidance. The PAN card has the name, photo and other related data that even make it a substantial personality evidence.

6. How to apply for PAN card

A. Online via NSDL site

1. Go to the official site of NSDL

2. A page will open, under Application Type select New Pan-Indian Citizen (Form 49A). On the off chance that you are an outside national, at that point select New PAN - Foreign Citizen(49AA)

3. Select the class of PAN card you need.

4. Fill in your own subtleties like name, date of birth, versatile number, and so on

5. Enter the captcha code and snap submit

6. After tapping the submit button, a token number will be created. You will be required to tap on the connection to proceed with your PAN application

7. Another page will show up and it will give you three alternatives: 1. Submit carefully through e-KYC and e-Sign (paperless) 2. Submit filtered picture through e-Sign 3. Forward application archives genuinely.

8. The most widely recognized and favored is examined picture through e-sign.

9. After choosing the choice, enter your subtleties, for example, Adhaar Card number, guardians name, and so on click straightaway.

10. This progression expects you to fill in your name, date of birth, address and so on. Subsequent to filling all the subtleties click Next.

11. In the subsequent stage, you will be required to enter your territory code, AO (surveying official) type, extend code, and AO number. Snap straightaway.

12. Select the reports you have submitted as verification old enough and habitation starting from the drop menu, fill in the necessary detail and afterward click submit.

13. Once your archives are transferred you will be coordinated to the installment page, you can pick one of the numerous online installment strategies. The charge for PAN card application if Rs. 115.90 barring extra bank charges, assuming any. In the event that you have decided to send the physical records as opposed to selecting e-KYC or e-Sign, at that point you should make an installment of Rs. 110.

14. Once you have made the installment, you will be required to experience the Aadhaar validation process, or submit archives through e-sign or to genuinely send the reports to NSDL. You will likewise get an email affirmation from NSDL about your application.

15. Your Pan Card will be couriered to you once the application has been handled. Keep the affirmation number with you.

B. Through income tax department site for free

1. Visit choose 'Register Yourself' option.

2. Select the firm type: Individual from the rundown of choices accessible. Snap on 'Proceed'. Aside from Individuals, just these clients can enroll themselves on the e-recording site: I) Hindu Undivided Family (HUF), ii) Other than Individual/HUF, iii) External Agency, iv) Chartered Accountants, v) Tax Deducted and Collector and vi) Third Party Software Utility Developer.

3. Enter your necessary subtleties with reference bullet mark: PAN, Surname, Middle Name, First Name, date of birth (as referenced on PAN), private status. Snap on 'Submit'. Here one must recall that fields set apart with bullet sign are required to be filled.

4. Next, you will be required to fill in different subtleties, for example, secret phrase, portable number, landline number, email ID and address. Guarantee that you have filled this data effectively.

5. The personal duty division will utilize your contact subtleties to send you sms/sends and so on.

6. Next you will be required to pick two addresses which will be utilized on the off chance that you need to reset the secret key of your record. Keep these inquiries and the responses to them safe. Snap on proceed with once.

7. You will be required to check your enlistment to finish the procedure. A one-time secret word (OTP) will be sent to your versatile number and a confirmation connection will be sent to your email address.

8. Enter the OTP got and click on the connection got to effectively enlist yourself on the e-documenting site

9. This is absolutely free option for registration PAN which has been started just a few months back.

10. When you have effectively enrolled yourself, you can now login to your record on the annual assessment site. Your PAN will be your client ID to login to your record. You should enter your secret phrase and captcha to sign in to your record.

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