In today’s business world, a Permanent Account Number (PAN) has become an integral tool for carrying out smooth financial operations and also for being regulatory compliant. Even though many have known PAN to be a tax identification number, its importance does not stop here. PAN can be used in several ways by different types of entities and people. In this all-inclusive guide, we will explore the various types of PAN cards, their benefits, and the procedure to obtain one and New pan registration .
What is a PAN card?
A PAN card is a 10-digit unique alphanumeric number issued by the Income Tax Department of India. It is an identifier for individuals, businesses, and entities involved in financial transactions. PAN is important for various purposes, including filing income tax returns, opening bank accounts, obtaining loans, and conducting high-value transactions.
Types of PAN Cards
1. Individual PAN Card:-Who It’s For: This type of PAN card is issued to individual taxpayers, including salaried employees, self-employed professionals, and individuals with taxable income.
Benefits: Individual PAN cards help in tracking income and financial transactions, making it easier to file income tax returns and avail tax benefits. It is also required for opening bank accounts and applying for loans.
2. HUF (Hindu Undivided Family) PAN Card:– For Whom: This PAN card is issued to Hindu Undivided Families, a unique entity in Indian law consisting of individuals descended from a common ancestor.- Advantages: HUF PAN cards enable the handling of family wealth and income without breaking any tax rules. It assists in preparing the HUF’s income tax return and claiming deductions and exemptions applicable to HUFs.
3. Firm/Partnership PAN Card:– For Whom: It is issued to a partnership firm, including LLPs (Limited Liability Partnerships), as well as traditional partnerships.- Advantages: Firm/Partnership PAN cards allow the firm to make bank transactions, submit tax returns, and claim tax exemptions applicable only to partnership firms. It is also mandatory for opening bank accounts for the business and for lending.
4. Company PAN Card:This type of PAN card is issued to registered companies, either public or private.- Advantages: Company PAN cards are essential to file corporate tax returns and to carry on business transactions with banks and other institutions. This is also needed to comply with the tax acts. It is also required for availing different business-related benefits and incentives from the government.
5. Trust PAN Card:– For Whom Issued: The PAN card is issued to trusts like charitable trusts and religious institutions.- Advantages: Trust PAN cards assist in managing the financial affairs of the trust, filing tax returns, and availing tax exemptions available to trusts. It is necessary for ensuring transparency and accountability in the trust’s financial dealings.
6. Association of Persons (AOP) PAN Card:- Who It’s For: AOP PAN cards are issued to groups of people or entities that are formed for a common purpose, such as clubs, societies, and associations.Benefits: An AOP PAN card helps the association in carrying out all financial transactions, filing tax returns, and claiming tax benefits specific to AOPs. It ensures that all tax laws are complied with and helps manage the funds of the association.
How to Apply for a PAN Card
New PAN Registration:
1. Select PAN Type: Select the appropriate PAN type according to the legal status of the applicant, whether an individual, HUF, firm, company, trust, or AOP.
2. Documents Required: Collect all documents that are proof of identity, proof of address, and proof of registration/incorporation in case of entities.
3. Fill Out the Application Form: Visit the official website of the Income Tax Department or authorised PAN service providers such as NSDL or UTIITSL. Fill out Form 49A (for Indian entities) or Form 49AA (for foreign entities) with accurate information.
4.Send in the Application: Send in the filled-out application form and the necessary paperwork. The form can be submitted online or at a PAN service centre.
5. Fee Payment: Payment of applicable PAN registration fees depends on the type of application and the mode of submission.
6. Track the Status: After submitting the application, you shall receive an acknowledgement receipt with a unique acknowledgement number for further use in tracking the status of your PAN application online.
How to Apply for a PAN Card Online
1. Visit the Official Website: Go to the official website of NSDL (https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html) or UTIITSL (https://www.pan.utiitsl.com/PAN/) for PAN card applications.
2. Select the Application Type: Choose the appropriate application type based on whether you are applying for a new PAN, making corrections to an existing PAN, or requesting a duplicate PAN card.
3. Fill the online application form with all correct details: Ensure that all fields are filled correctly to avoid errors.
4. Upload scanned copies of the required documents: Such as proof of identity, proof of address, and proof of registration or incorporation.
5. Pay the fees: The fees will be paid online using a credit card, debit card, net banking, or other available payment methods.
6. Submit the Application: Once you have filled out the form and have made the payment, submit an application online. You would get an acknowledgement receipt with a unique acknowledgement number.
7. Check the Status: You can also check your application status for getting the PAN card online by the acknowledgement number.
What To Do If One Requires Duplicate PAN Card
In case your PAN card is lost, stolen, or damaged, you can apply for a duplicate PAN card.
Here’s how:
1. Visit the Official Website: Go to the official website of NSDL or UTIITSL and select the option for duplicate PAN card application.
2. Fill Out the Application Form: Complete the form with your existing PAN details and select the reason for requesting a duplicate card.
3. Attach Documents: Scan and upload documents like proof of identity, proof of address, and a copy of the FIR in case of loss or theft of the card.
4. Pay Charges: Pay for the issuance charge of the duplicate PAN card.
5. Submit Application: Submit the completely filled form with all the uploaded documents online and get an acknowledgement receipt with an acknowledgement number unique to the request.
6. Track Status: Use the acknowledgement number to track the status of your duplicate PAN card application online.
Having a PAN is essential for businesses to operate smoothly, stay tax compliant, and be within the bounds of regulatory requirements. Whether you apply for a new PAN, access your PAN card online, or request a duplicate card, knowledge of the procedure and requirements can be helpful. Businesses in Kerala should also be sure to get their GST number so that there are no obstacles in financial transactions and they adhere to GST regulation.
OUTBAY Financial Services is dedicated to providing comprehensive and expert financial assistance and consulting in matters regarding the complexity of PAN registration and management for the respective business clients. Experienced tax consultants on the panel will offer custom advice about the process for New PAN registration, applying for a PAN card, the method to apply for a PAN online, and procurement of a duplicate PAN card. With OUTBAY’s all-inclusive financial services, businesses can be sure of getting accurate and timely compliance, smoothing their operations, and achieving their financial goals with confidence. So, lean on OUTBAY for any financial and tax-related needs and make your business succeed in this ever-competitive marketplace.
