Know if you are Eligible for a PAN Card- An Ultimate Guide to Follow

There were about 445 million genuine PAN cards issued in 2019. 

Source- IT Return Statistics Assessment Year 2018-19 

PAN or Permanent Account Number, provided to liable taxpayers of the country is one of the most important documents to be submitted for a major number of purposes like loan or credit card application, filing income tax returns, purchase of jewellery above the prescribed amount and others. A PAN card can also be issued to non-taxpayers and foreign nationals under some guidelines.

While a PAN card is an important document to have, it is only provided to those who fulfil the eligibility criteria. Besides, even a single missing/expired document can become a reason behind a failed PAN card application process. This blog is a detailed guide to what is actually required to get a PAN card swiftly and what eligibility criteria should be met to apply for one. 

What is the Eligibility Criteria to Acquire a PAN card?

It is mandatory for taxpayers, organizations, trusts, etc. to hold a PAN card in order to be able to file income tax returns. It is also mandatory to submit a PAN card to buy/sell a property, invest in mutual funds/SIP or for trade purposes.

It is to be noted that under the Income Tax Act, it is an offence to hold two PAN cards, owing to which a penalty of Rs. 10,000 is levied on the PAN cardholder. Any individual with more than one PAN card should immediately surrender the additional PAN card by raising a surrender request either online or offline.

Eligibility Criteria to Acquire a PAN Card for Indians

Indian nationals are required to fill Form 49A and submit it to the concerned authorities. However, it is to be noted that failing to furnish the supporting documents can hinder the PAN application process. The table below shows the list of documents that an applicant should submit. Note that the applicant can be a person, firm, organization, trust, partnership etc. 

Indian Nationals

Eligibility Criteria

Individual

Indian citizens should have-

  • Identity Proof
  • Address Proof
  • Date of Birth Proof

Partnership Firms

A firm should have- 

  • Copy of Certificate of Registration issued by Registrar of Firms or Copy of Partnership Deed 

Limited Liability Partnership

The LLP should submit- 

  • Copy of Certificate of registration issued by the Registrar of LLPs 

Trusts 

A trust is liable to provide- 

  • Trust Deed and Certificate of Registration number issued by Charity Commissioner

Local Authorities

Local Authorities need to submit a Copy of the Agreement 

Association of Persons

Registered Associations are required to submit a Registration Certificate

Artificial Judicial Person

Artificial Judicial Person will be asked to submit Registration Certificate or Government Identity and Address Proof

Hindu Undivided Families

HUF’s Head can apply for a PAN card on behalf of the family members by submitting the following- 

  • Head’s Proof of Identity 
  • Head’s Proof of Address
  • Date of Birth Proof
  • Head’s Fathers Name
  • Address of all the Coparceners
  • Affidavit with all the details has to be created and submitted by the Head of HUF

Minors

Parents, on behalf of the minor, can also apply for a PAN card by submitting the following- 

  • Parents of a minor can sign Form 49A on the minor’s behalf
  • Parents Proof
  • Minor’s Date of Birth Proof
  • AADHAR card of the minor should be quoted in the Form 49A

Person with Intellectual Disability

On behalf of a person, his/her representative can apply for a PAN card

PAN Card Eligibility Criteria for Foreign Citizens

Any foreign national who wishes to work in India, start a company or Indian subsidiary should have a PAN card. To get one, foreign nationals are required to fill Form 49AA and submit the following documents along with the PAN card fee to the concerned authorities-

Foreign Citizens

List of Documents

Proof of Identity

  • Taxpayer Identification Number
  • Citizenship Identification Number attested by the Ministry of External Affairs or High Commission or Indian Embassy
  • Passport/OCI card/PIO card

*Applicant can get the TIN and CIN documents attested from the Country’s Consulate where he/she is residing or from the overseas Authorized Official of Indian Scheduled Bank Branch 

Proof of Address

  • Taxpayer Identification Number
  • Citizenship Identification Number attested by the Ministry of External Affairs or High Commission or Indian Embassy
  • Passport/OCI card/PIO card
  • Bank statement (from the Country where he/she resides)
  • Bank statement from the NRE (Non- Resident External) Account opened in India
  • Certificate of Residence Address in India or Residence Permit issued by Police Authorities
  • Certificate of Registration having an Indian Residential Address- issued by Foreigner’s Registration Office
  • Contract/Letter/Visa granted by the Indian company
  • Address Proof issued by the Indian employer

*Applicant can get the TIN and CIN documents attested from the Country’s Consulate where he/she is residing or from the overseas Authorized Official of Indian Scheduled Bank Branch 

Read More: How to Apply for a PAN Card Easily- A Step by Step Guide

PAN Card Eligibility Criteria for Foreign Entities 

A foreign entity can apply for a PAN card by submitting the following documents along with a PAN card fee to the concerned authorities- 

  • Photocopy of Registration Certificate issued by the country where the entity is situated. The certificate should be duly attested by the Ministry of External Affairs or High Commission or the Indian Embassy. An applicant can get the document attested from the Country’s Consulate where he/she is residing or from the overseas Authorized Official of Indian Scheduled Bank Branch 
  • Copy of Registration Certificate provided by India or an approval copy obtained from Indian Authorities to set up an office in India

FAQs
How long does the PAN card remain valid?
A PAN card remains valid for a lifetime.
Can I apply for a PAN card online?
Yes, you can apply for a PAN card online by visiting the official website of NSDL or UTIITSL and proceed further as per the instructions.
What are the types of PAN card forms?
There are two types of PAN card forms, one is Form 49A which is for Indian nationals and the second is Form 49AA which is for foreigners.
What is the PAN card fee?
A fee of Rs. 93 is required to be paid for the Indian communication address, whereas Rs. 864 needs to be paid for the foreign communication address.
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