Hey Guys, I will share with you all about the Permanent Account Number (PAN) – What are the Consequences of Not linking PAN with an Aadhaar Number?. what are the benefits of obtaining the PAN Card?. there are some specified financial transactions in which quoting of PAN is mandatory. so, it is important to note such transactions so that we can quote our PAN.

What is PAN?

​​PAN stands for Permanent Account Number. PAN is a ten-digit unique alphanumeric number issued by the Income Tax Department. PAN is issued in the form of a laminated plastic card (commonly known as a PAN card). Given below is an illustrative PAN: DIUPG9489L

What is the utility of PAN?

​PAN enables the department to link all transactions of the assessee with the department. These transactions include tax payments, TDS/TCS credits, returns of income, specified transactions, correspondence, and so on. It facilitates easy retrieval of information of assessee and matching of various investments, borrowings, and other business activities of assessee.​

What are the benefits of obtaining a Permanent Account Number [PAN] and PAN Card?

​​​A Permanent Account Number has been made compulsory for every transaction with the Income-tax Department. It is also mandatory for numerous other financial transactions such as the opening of bank accounts, in a bank account, a deposit of cash in a bank account, the opening of a Demat account, transaction of immovable properties, dealing in securities, etc.

A PAN card is a valuable means of photo identification accepted by all Government and non-Government institutions in the country.​

How PAN is formed and how does it get its unique identity?

PAN is a ten-digit unique alphanumeric number issued by the Income Tax Department. The formation of PAN is discussed below :

• • Out of the first five characters, the first three characters represent the alphabetic series running from AAA to ZZZ. (E.g. ALWPG5809L).
  • The fourth character of PAN represents the status of the PAN holder (E.g. ALWPG5809L).
  • “A” stands for Association of Persons (AOP)
    “B” stands for Body of Individuals (BOI)
    “C” stands for Company”F” stands for Firm/Limited Liability Partnership

    “G” stands for Government Agency

    “H” stands for Hindu Undivided Family (HUF)

    “J” stands for Artificial Juridical Person

    “L” stands for Local Authority

    “P” stands for Individual

    “T” stands for Trust

  • The fifth character of PAN represents the first character of the PAN holder’s last name/surname in the case of an individual. In the case of non-individual PAN holders, the fifth character represents the first character of the PAN holder’s name (E.g. ALWPG5809L)

  • The next four characters are sequential numbers running from 0001 to 9999 (E.g. ALWPG5809L).

  • The last character, i.e., the tenth character is an alphabetic check digit (E.g. ALWPG5809L).The combination of all the above items gives the PAN its unique identity.

Who has to obtain PAN?​​​​​​​​

• • PAN is to be obtained by the following persons:
    • Every person if his total income or the total income of any other person in respect of which he is assessable during the previous year exceeds the maximum amount which is not chargeable to tax.
    • A charitable trust is required to furnish a return under Section 1​39(4A)
    • Every person who is carrying on any business or profession whose total sale, turnover, or gross receipts are or are likely to exceed five lakh rupees in any previous year
    • Every person who intends to enter into specified financial transactions in which quoting of PAN is mandatory

    Every non-individual resident person and person associated with them if the financial transaction entered into by such non-individual resident persons during a financial year exceeds Rs. 2,50,000. A person not covered in any of the above can voluntarily apply for PAN.

  • Note: Persons associated with non-individual resident persons means the managing director, director, partner, trustee, author, founder, Karta, chief executive officer, principal officer, or office bearer of the non-individual resident persons or any person competent to act on behalf of such persons.

What are the specified financial transactions in which quoting of PAN is mandatory?​​

• • As per rule 114B, the following are the transactions in which quoting of PAN is mandatory by every person except the Central Government, the State Governments, and the Consular Offices:
    1. Sale or purchase of a motor vehicle or vehicle other than two-wheeled vehicles.​ ​
    2. Opening an account [other than a time-deposit referred at point No. 12 and a Basic Savings Bank Deposit Account] with a banking company or a cooperative bank​
    3. Making an application for the issue of a credit or debit card.
    4. Opening of a Demat account with a depository, participant, custodian of securities, or any other person with SEBI
    5. Payment in cash of an amount exceeding Rs. 50,000 to a hotel or restaurant against a bill at any one time.
    6. Payment in cash of an amount exceeding Rs. 50,000 in connection with travel to any foreign country or payment for the purchase of any foreign currency at any one time.
    7. Payment of an amount exceeding Rs. 50,000 to a Mutual Fund for the purchase of its units
    8. Payment of an amount exceeding Rs. 50,000 to a company or an institution for acquiring debentures or bonds issued by it.
    9. Payment of an amount exceeding Rs. 50,000 to the Reserve Bank of India for acquiring bonds issued by it.
    10. Deposit with a banking company or a co-operative bank:-
        1. ​Cash exceeding Rs. 50,000 during any one day; or
        2. A cash deposit aggregating to more than Rs. 2,50,000 during the period 09th November 2016 to 30th December 2016
    11. Payment in cash for an amount exceeding Rs. 50,000 during any one day for the purchase of bank drafts or pay orders or banker’s cheques from a banking company or a cooperative bank.
        1. ​a banking company or a co-operative bank
        2. a Post Office;
        3. a Nidhi referred to in section 406 of the Companies Act, 2013 or
        4. a non-banking financial company time deposit of an amount exceeding Rs. 50,000 or aggregating to more than Rs. 5 lakh during a financial year with –
    12.  Payment in cash or by way of a bank draft or pay order or banker’s cheque of an amount aggregating to more than Rs. 50,000 in a financial year. for one or more pre-paid payment instruments, as defined in the policy guidelines for issuance and operation of pre-paid payment instruments issued by Reserve Bank of India under section 18 of the Payment and Settlement Systems Act, 2007 to a banking company or a co-operative bank or to any other company or institution.
    13. Payment of an amount aggregating to more than Rs. 50,000 in a financial year as a life insurance premium to an insurer
    14. A contract for sale or purchase of securities (other than shares) for an amount exceeding Rs. 1 lakh per transaction
    15. Sale or purchase, by any person, of shares of a company not listed in a recognized stock exchange for an amount exceeding Rs. 1 lakh per transaction.
    16. Sale or purchase of any immovable property for an amount exceeding Rs. 10 lakh or valued by stamp valuation authority referred to in section 50C of the Act at an amount exceeding ten lakh rupees.
    17. ​Sale or purchase of goods or services of any nature other than those specified above for an amount exceeding Rs. 2 lakh per transaction.

    ​​NOTE:

    • A minor person can quote the PAN of his father or mother or guardian provided he does not have any income chargeable to income tax.
    • Any person, who does not have PAN and enters into any of the above transactions, can make a declaration in Form No.60.
    • Form No.60 transaction, can make a declaration in chargeable to income tax.
  • How does Income Tax Department ensure that PAN is quoted on transactions in which quoting of PAN is mandatory?

​It is the statutory responsibility of a person receiving documents relating to economic or financial transactions notified by the Central Board of Direct Taxes (CBDT) to ensure that PAN has been duly quoted in the documents in which quoting of PAN is mandatory. Thus, the receiver of these documents will ensure that PAN is quoted in the respective document. E.g. PAN is necessary to open a bank account and hence the Bank will ensure that the applicant has quoted his PAN at the time of applying for a bank account.

Can I file my return of income without quoting PAN?

​​​It is mandatory to quote PAN on the return of income. Apart from return of income, PAN is also to be quoted in all challans for making payment of tax, correspondence with the Income Tax Department, etc.

However, w.e.f., 01-09-2019, every person who has been allotted a PAN, and who has linked his Aadhaar number with PAN as per section 139​AA, may furnish his Aadhaar number in lieu of a PAN for all the transactions where quoting of PAN is mandatory as per Income-tax Act. Thus, with effect from September 1, 2019, an assessee can file his return of income by quoting his Aadhaar number instead of quoting PAN.

also read: Income Tax Return Filling is Mandatory in 10 Cases

How to apply for PAN?​​​

PAN applications can be filled up in the following forms –

PAN application can be made either online through the NSDL website www.tin-nsdl.com (Click here to apply for PAN online) or UTIITSL ​website (Click here to apply through UTIITSL) or through any of the NSDL TIN-Facilitation Centres/ PAN Centres (Click here to select the nearest TIN – Facilitation Centers/ PAN centers where PAN application may be submitted).

If the applicant opts for a physical PAN Card, then the physical PAN card will be printed & dispatched to a communication address. In the case of an applicant, being a company that has not been registered under the Companies Act, 2013, the application for allotment of a Permanent Account Number is to be made in Form No. SPICE-INC-32 specified under sub-section (1) of section 7 of the said Act for incorporation of the company.​ (Application for TAN is also to be made through SPICE-INC-32)

• • Note: w.e.f. 01-07-2017, every person who is eligible to obtain an Aadhaar number shall quote either the Aadhaar number or the enrolment ID of the Aadhaar application form in the PAN application form.
  • If the physical PAN Card is not required. In such cases, an email ID will be mandatory & e-PAN Card in PDF format will be sent to the PAN applicant at the email ID mentioned in the PAN application form. Physical PAN Card will not be dispatched in such cases.
  • While submitting the PAN application form, the applicant will have to indicate whether a physical PAN card or E-PAN card is required.

Is it mandatory to link the Aadhaar number with PAN?

The Finance Act, 2017 had inserted a new Section 139AA in the Income-tax Act, 1961, requiring every person who is eligible to obtain Aadhaar to quote his Aadhaar number while applying for PAN or furnishing a return of income with effect from July 1, 2017.

If any person does not possess the Aadhaar Number but he had applied for the Aadhaar card then he can quote the Enrolment ID of the Aadhaar application Form in the ITRThe CBDT has notified that all the consequences provided under the Income-tax Act for not furnishing, intimating or quoting PAN shall come into effect from 01-04-2023 if PAN becomes inoperative due to non-linking of it with Aadhaar. However, the taxpayer is liable to pay a fee under Section 234H if PAN is linked with Aadhaar from 01-04-2022 to 31-03-2023.

• • Circular No. 07/2022, dated 30-03-2022 read with Proviso to Rule 114AAA(2) inserted by the Income-tax (Third Amendment) Rules, 2022 vide Notification No.17/2022 dated 29-03-2022
  • Section 139AA further provides that every person who has been allotted PAN as of the 1st day of July 2017, and who is eligible to obtain an Aadhaar number shall intimate his Aadhaar number on or before a date to be notified 31-03-2022 to the Income-tax Department. In case of failure to intimate the Aadhaar number, PAN allotted to the person shall be made inoperative after the date so notified.

How to link your Aadhaar number with PAN using the e-Filing portal?

The taxpayer is required to log in on the e-Filing portal using his registered username and password. After login, he will get the “link Aadhaar” option under his ‘Profile Settings’.

• • The aadhaar number will be linked with PAN if the name and date of birth of the taxpayer are identical to Aadhaar and PAN.

What is the fee for default relating to the intimation of Aadhaar number?

The Finance Act, 2021 has inserted a new Section 234H to levy a fee for default in intimating the Aadhaar Number. If a person is required to intimate his Aadhaar under Section 139AA and such person fails to do so, he shall be liable to pay a fee, as may be prescribed, not exceeding Rs. 1,000 at the time of making such intimation.

The CBDT vide notification No. 17/2022, dated 29-03-2022 has amended Rule 114 to prescribe the fees to be levied if Aadhaar is not linked with PAN. As per Rule 114(5A), if a person intimates his Aadhaar number after the due date, then he shall be liable to pay a fee of:

• • a. Rs. 500, if such intimation is made between 01-04-2022 and 30-06-2022; and
  • b. Rs. 1,000, in all other cases

Therefore, if the person fails to link PAN-Aadhaar by the due date, he shall be liable to pay a fee, a maximum of Rs. 1,000. This fee shall be in addition to the other consequences the person has to face if PAN becomes inoperative due to non-intimation of Aadhaar.

How to link the Aadhaar number with PAN using the SMS facility?

A taxpayer who wants to link their Aadhaar number with PAN is required to send an SMS to 567678 or 56161 in the following format: Example of SMS to 567678 or 56161:Aadhaar number will be linked with PAN if the name and date of birth of the taxpayer are identical to Aadhaar and PAN.

• • UIDPAN 111122223333 AAAPA9999Q
  • UIDPAN<space><12 digit Aadhaar><space><10 digit PAN>

How to link the Aadhaar number with PAN?

The aadhaar number can be linked with PAN in any of the two ways:

• • Are there any charges to be paid for obtaining the PAN?

The applicant has to pay a fee of Rs. 93 + GST as applicable, per the PAN application. In case, the PAN card is to be dispatched outside India then the fee for processing the PAN application is Rs. 864 (Rs. 93 application fees and Rs. 771 dispatch charges)/- will have to be paid by the applicant (plus GST as applicable).

Is there any TATKAL facility for the allotment of PAN?

​​​No, there is no TATKAL facility for the allotment of PAN.

Can an application for PAN be made on plain paper?​​​​​

Application for PAN cannot be made on plain paper. The application for PAN is to be made in the prescribed form i.e. Form No. 49A/Form No. 49AA as the case may be. Form No. 49A is to be used by Indian Citizens/Indian Companies/Entities incorporated in India/Unincorporated entities formed in India and Form No. 49AA​ is to be used by individuals not being a citizen of India/Entities incorporated outside India/Unincorporated entities formed outside India).​

• • In the case of an applicant, is a company that has not been registered under the Companies Act, 2013, the application for allotment of a Permanent Account Number is to be made in SPICE-INC-32 specified under sub-section (1) of section 7​ of the said Act for incorporation of the company.​

What if I submit an incomplete PAN application i.e. Form 49A/49AA?

​IT PAN Service Centers or TIN Facilitation Centers shall not receive any incomplete and deficient PAN application. However, these centers will assist applicants in correctly filling up form 49A/49AA (as the case may be).

Is it necessary to fill the PAN application form i.e. Form 49A/49AA in block letters?

Yes, Form 49A/49AA (as the case may be) should be filled legibly in BLOCK LETTERS and preferably in black ink. It should also be noted that each box, wherever provided, should contain only one character (alphabet /number/punctuation sign) leaving a blank box after each word.​

What documents and information have to be submitted along with the PAN application in Form 49A/49AA?​

The documents required to be submitted with the PAN application are specified in Rule 114 of the Income-tax Rules. The details of the documents required are also provided in the application form. Individual applicants have to provide documents pertaining to proof of identity, proof of address, and proof of date of birth. The name of the applicant as mentioned in the application form and the name appearing in the documents submitted along with the application should match exactly.

• • Individual applicants should affix two recent color photographs with white background (size 3.5 cm x 2.5 cm) in the space provided on the form. The photographs should not be stapled or clipped to the form. The clarity of the image on the PAN card will depend on the quality and clarity of the photograph affixed to the form.
  • What documents will serve as proof of identity in the case of individual/HUF (Hindu Undivided Family) applicants?

Any of the following documents will serve as proof of identity in case of individual applicants are Indian citizens (including those located outside India) :

• Copy of following :
  • Aadhaar Card issued by the Unique Identification Authority of India; or
  • o Elector’s photo identity card; or
  • Driving License; or
  • Passport; or
  • Ration card having a photograph of the applicant; or
  • Arm’s license; or
  • Photo identity card issued by the Central Government or State Government or Public Sector Undertaking; or
  • Pensioner card having a photograph of the applicant; or
  • Central Government Health Service Scheme Card or Ex-Servicemen Contributory Health Scheme photo card
  • Certificate of identity in original signed by a Member of Parliament or Member of Legislative Assembly or Municipal Councilor or a Gazetted officer, as the case may be; or
  • Bank certificate in Original on letter head from the branch (along with name and stamp of the issuing officer) containing a duly attested photograph and bank account number of the applicant.

For HUF, an affidavit made by the Karta of Hindu Undivided Family stating the name, father’s name, and address of all the coparceners on the date of application and a copy of any of the above documents in the name of Karta of HUF is required as proof of identity.

In the case of a minor, any of the above-mentioned documents of any of the parents/guardians of such minor shall be deemed to be the relevant proof of identity for the minor applicant.

What documents will serve as proof of address in the case of individual/HUF applicants?

Copy of any of the following documents will serve as proof of address in case of individual applicants being Indian citizens (including those located outside India) :

• Copy of following :
  • • • Aadhaar Card issued by the Unique Identification Authority of India; or
      • Elector’s photo identity card; or
      • Driving License; or
      • Passport; or
      • Passport of the spouse; or
      • Post office passbook having an address of the applicant; or
      • Latest property tax assessment order; or
      • Domicile certificate issued by the Government; or
      • Allotment letter of accommodation issued by Central or State Government of not more than three years old; or
      • Property Registration Document; or
• Copy of following documents of not more than three months old
  • • • Electricity Bill; or
      • Landline Telephone or Broadband connection bill; or
      • Water Bill; or
      • Consumer gas connection card or the book or piped gas bill; or
      • Bank account statement or as per Note given below; or
      • Depository account statement; or
      • Credit card statement; orNote: In the case of an Indian citizen residing outside India, a copy of a Bank Account Statement in the country of residence or a copy of a Non-resident External (NRE) bank account statement (not more than three months old) shall be the proof of address.
    • Certificate of identity in Original signed by a Member of Parliament or Member of Legislative Assembly or Municipal Councilor or a Gazetted officer, as the case may be.
    • Employer certificate in original.For HUF, an affidavit made by the Karta of Hindu Undivided Family stating the name, father’s name, and address of all the coparceners on the date of application and a copy of any of the above documents in the name of Karta of HUF is required as proof of address.

      In the case of a minor, any of the above-mentioned documents of any of the parents/guardians of such minor shall be deemed to be the relevant proof of address for the minor applicant. ​

  • What documents will serve as proof of date of birth in the case of individual applicants?​​​Copy of any of the following documents will serve as proof of date of birth in case of individual applicants being Indian citizens (including those located outside India) :
    • Birth Certificate issued by the Municipal Authority or any office authorized to issue Birth and Death Certificate by the Registrar of Birth and Death or the Indian Consulate as defined in clause (d) of sub-section (1) of ​ section 2 of the Citizenship Act, 1955 (57 of 1955); or
    • Pension payment order; or
    • ​Marriage certificate issued by Registrar of Marriages; or
    • Matriculation Certificate; or
    • Passport; or
    • Driving License; or
    • Domicile Certificate issued by the Government; or
    • An affidavit is sworn before a magistrate stating the date of birth​
  • What documents are to be submitted in case of an applicant other than individual/HUF?

​​​In the case of applicants other than individual/HUF, the following documents are to be submitted along with the PAN application :

• • Partnership Firm formed or registered in India	Copy of Certificate of Registration issued by the Registrar of Firms or Copy of partnership deed.
    Limited Liability Partnership formed or registered in India	Copy of Certificate of Registration issued by the Registrar of LLPs
    Association of Persons (Trust) formed or registered in India	Copy of trust deed or copy of the certificate of registration number issued by Charity Commissioner.
    Association of Person(other than trusts), Body ofIndividuals, Local Authority, or Artificial Juridical Person formed or registered in India	Copy of Agreement or copy of the certificate of registration number issued by charity commissioner or registrar of cooperative society or any other competent authority or any other document originating from any Central or State Government Department establishing identity and address of such person.

What documents will serve as proof of identity in case individuals not being a citizen of India?

​​Copy of the following will serve as proof of identity in case of individuals not being a citizen of India :

• • • Copy of passport, or
    • Copy of Person of Indian Origin (PIO) card issued by Government of India, or
    • Copy of Overseas Citizen of India (OCI) card issued by Government of India, or
    • ​Copy of other national or citizenship Identification Number or Taxpayer Identification Number duly attested by “Apostille” (in respect of countries which are signatories to the Hague Apostille Convention of 1961) or by the Indian Embassy or High Commission or Consulate in the country where the applicant is located or authorized officials of overseas branches of Scheduled Banks registered in India.

What documents will serve as proof of address in case of individuals not being a citizen of India?

​​Copy of following will serve as proof of address in case of individuals not being a citizen of India

• • • Copy of Passport, or
    • Copy of Person of Indian Origin (PIO) card issued by Government of India, or
    • Copy of Overseas Citizen of India (OCI) card issued by Government of India, or
    • Copy of other national or citizenship Identification Number or Taxpayer Identification Number duly attested by “Apostille” (in respect of the countries which are signatories to the Hague Apostille Convention of 1961) or by the Indian Embassy or High Commission or Consulate in the country where the applicant is located or authorized officials of overseas branches of Scheduled Banks registered in India, or
    • Copy of Bank account statement in the country of residence, or
    • Copy of Non-resident External (NRE) bank account statement in India, or
    • Copy of Certificate of Residence in India or Residential permit issued by the State Police Authorities, or
    • Copy of Registration certificate issued by the Foreigner’s Registration Office showing Indian address, or
    • ​Copy of Visa granted & Copy of appointment letter or contract from Indian Company & Certificate (in original) of Indian address issued by the employer.

What documents will serve as the relevant proofs in case of applicants being entities incorporated outside India/Unincorporated entities formed outside India?

​Copy of following will serve as relevant proof in case of applicant being entities incorporated outside India/Unincorporated entities formed outside India :

• Copy of Certificate of Registration issued in the country where the applicant is located, duly attested by “Apostille” (in respect of the countries which are signatories to the Hague Apostille Convention of 1961) or by the Indian Embassy or High Commission or Consulate in the country where the applicant is located or authorized officials of overseas branches of Scheduled Banks registered in India
• Copy of registration certificate issued in India or of approval granted to set up an office in India by Indian Authorities.

Is it mandatory to provide the Assessing Officer Code in Form 49A/49AA?

• ​Yes, it is mandatory to provide the Assessing Officer (AO) Code in Form 49A/49AA. AO Code (i.e. Area Code, AO Type, Range Code, and AO Number) of the Jurisdictional Assessing Officer must be filled up by the applicant. These details can be obtained from the Income Tax Office or PAN Centre or the websites of PAN service providers on www.utiitsl.com or www.tin-nsdl.com.
• Should a married female provide a father’s name?​​While providing the full name, the applicant should provide the father’s name, and hence, the married female should provide the father’s name and not the husband’s name. ​
• • In the application for PAN, details of the non-resident, minor, lunatic, idiot, mentally retarded, deceased, wards of court, etc. should be provided.
  • Details of the representative assessee have to be provided in item 14 of the application for PAN.
  • ho can apply on behalf of a non-resident, minor, lunatic, idiot, and court of wards?​​​​​​​
  •  ​​Section ​160 of the Income-tax Act, 1961 provides that a non-resident, minor, lunatic, idiot, mentally retarded, deceased, wards of court, and such other persons may be represented through a Representative Assessee.
  • Proof of Identity and Proof of address is also required for the representative assessee.

Who has to sign the PAN application i.e. Form 49A/49AA?​

Application in Form 49A/49AA must be signed (left thumb impression in case of persons unable to sing) by :

Representative Assessee in case of Minor/deceased/idiot/lunatic/mentally retarded.

• How to sign the PAN application i.e. Form 49A/49AA?​The applicant has to provide a signature at three places in form 49A/49AA. If the applicant cannot sign, then the Left-Hand Thumb impression of the applicant should be affixed at the place meant for signatures and should be attested by a Magistrate or a Notary Public, or a Gazetted Officer, under official seal and stamp. Three signature/thumb impressing are to be provided as follows:
  • One signature / left-hand thumb impression should be provided across the photo affixed on the left side of the form in such a manner that a portion of the signature/impression is on the photo as well as on the form.
  • One signature /left-hand thumb impression should be provided within the box provided on the right side of the form. The signature /thumb impression should not be on the photograph affixed on the right side of the form.
  • One signature /left-hand thumb impression should be provided at the end of the form in the declaration part. Signature /left-hand thumb should be within the box provided for signature /left-hand thumb.

  Applications not signed in the given manner and in the space provided for signature are liable to be rejected.

After making the PAN application how can I check the status of my PAN application?​​

• After applying for PAN, one can check the status of his application by using the track status facility available at web sites of the Income Tax Department or UTIITSL or NSDL i.e. www.incometaxindia.gov.in or NSDL and UTITSL. ​
• Is it mandatory to file a return of income after getting PAN?​​​​​​​​Return is to be filed only if you are liable to file a return of income under section 139.

It is not mandatory to file a return of income after getting PAN.

• Should I intimate my PAN to the deductor i.e. person deducting tax?​​Yes, you should intimate your PAN to the deductor i.e. person deducting tax. From 1st April 2010, non-furnishing of PAN to deductors results in TDS at a much higher rate of 20% or even more.​
• What is the validity of PAN?​​PAN obtained once is valid for the lifetime of the PAN-holder throughout India. It is not affected by the change of address or change of Assessing Officer etc. However, any change in the PAN database (i.e. details provided at the time of obtaining PAN) should be intimated to the Income Tax Department by furnishing the details in the form for “Request For New PAN Card Or/ And Changes Or Correction in PAN Data”.​

How to Apply for PAN Correction?​​​

Any change in the PAN database (i.e. details provided at the time of obtaining PAN) should be intimated to the Income-tax Department by furnishing the details in the form for “Request For New PAN Card Or/ And Changes Or Correction in PAN Data”.

​For offline mode, you are required to submit the “Request For New PAN Card Or/ And Changes Or Correction in PAN Data” form at the nearest PAN facilitation center.> Online through NSDL https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html> Download PDF https://www.incometaxindia.gov.in/Documents/form-for-changes-in-pan.pdf​​https://www.incometaxindia.gov.in/Documents/form-for-changes-in-pan.pdf​

• Online through UTIITSL https://www.myutiitsl.com/PAN_ONLINE/CSFPANApp
• Request For New PAN Card Or/ And Changes Or Correction in PAN Data
• PAN correction can be done both online and offline mode.

What is the penalty for not complying with the provisions relating to PAN?​​​​​​

​​Section​ 272B provides for a penalty in case of default by the taxpayer in complying with the provisions relating to PAN, i.e., not obtaining PAN, even though he is liable to obtain PAN or knowingly quoting incorrect PAN in any prescribed document in which PAN is to be quoted or intimating incorrect PAN to the person deducing tax or person collecting tax.

The penalty of Rs. 10,000 under section 272B can be levied for failure to comply with the provisions of section 139A​ and a penalty of Rs. 10000 per default shall be levied for failure to Quote or to Quote invalid PAN.

Can a person hold more than one PAN?​​​​​​​​

A person cannot hold more than one PAN. If a PAN is allotted to a person, then he cannot apply for obtaining another PAN. A penalty of Rs. 10,000/- is liable to be imposed under​​Section 272B​ of the Income-tax Act, 1961 for having more than one PAN.

• If a person has been allotted more than one PAN then he should immediately surrender the additional PAN card(s).
• By mistake, I have been using different PANs for different purposes like one for my Demat account and another for filing my Income-tax return and payment of taxes.
• How do I set this right? ​It is advisable to retain only one PAN, preferably the one used for Income-tax purposes, and surrender the other number immediately. The institutions where the latter number has been quoted should be informed of the correct PAN.​
• Whom to contact in case of any matter relating to PAN?​​​In case of PAN card is not received, contact NSDL.

  Mode	Income Tax Department	NSDL
  Website	www.incometaxindia.gov.in	www.tin-nsdl.com
  Call Center	1800-180-1961	020-27218080
  Email ID	efilingwebmanager@incometax.gov.in	tininfo@nsdl.co.in
  SMS		SMS NSDLPAN <space> Acknowledgement No. & send to 57575 to obtain application status.
  Address		Tin Call Center 4th Floor, Mantri Sterling, Plot No. 341, Survey No. 997/8, Model Colony, Near Deep Bungalow Chowk, Pune – 411 016.

The Income Tax Department or NSDL can be contacted in any of the following means

How to get the area code for my area for allotment of PAN?

It is mandatory to provide the AO Code while applying for PAN and TAN. AO Code (i.e., Area Code, AO Type, Range Code, and AO Number) of the Jurisdictional Assessing Officer must be filled up by the applicant. These details can be obtained from the following links: Click on the above link for the AO Code of PAN. Click on the above link for the AO Code of TAN.

• • https://tin.tin.nsdl.com/tan/servlet/TanAOSearch
  • https://tin.tin.nsdl.com/pan/servlet/AOSearch

What is E-PAN?

E-PAN is the PAN provided in PDF format rather than a physical card. The E-PAN card in PDF format will be sent to the e-mail ID mentioned in the PAN application form.

If the physical PAN Card is not required, then the PAN applicant will have to indicate it at the time of submission of the PAN application. In such cases, an Email ID will be mandatory & E-PAN Card will be sent to the PAN applicant at the email ID. Physical PAN Card will not be dispatched in such cases. Charges for E-PAN card is different from physical PAN card.

What is PAN verification?

This functionality helps the deductor in verifying whether the PAN provided by the deductee (Tax Payer) is valid as per the Income Tax Department database.​

What are the Consequences of Not linking PAN with Aadhaar Number?

The Central Board of Direct Taxes has notified Rule 114AAA prescribing the manner and consequences if PAN becomes inoperative. The Rule 114AAA(2) provides that where a person, whose PAN has become inoperative, it shall be deemed that he has not furnished, intimated, or quoted the PAN, as the case may be, and he shall be liable for all the consequences under the Act for not furnishing, intimating or quoting the PAN.

Further, if a person fails to link PAN-Aadhaar by the due date, he shall be liable to pay a fee, a maximum of Rs. 1,000 under section 234H. If a person intimates his Aadhaar number after the due date, then he shall be liable to pay a fee of:

• a. Rs. 500, if such intimation is made between 01-04-2022 and 30-06-2022; and
• b. Rs. 1,000, in all other cases
• However, the person can reactivate his PAN by subsequently intimating his Aadhaar to the Department.

What is Instant-PAN?

Income-tax Dept. has launched a new functionality on the e-filing portal which allows a PAN to the assessee on basis of his Aadhaar Number.

• This facility can be used by an assessee only if the following conditions are fulfilled:
  1. Go to https://www.incometax.gov.in/iec/foportal and click on the link ‘Instant PAN’ through Aadhaar given on the right-hand side
  2. Click on ‘Get New PAN’
  3. Enter the Aadhaar No. of the Applicant
  4. Enter the OTP received on the mobile number linked with the Aadhaar No.
  5. Validate the Aadhaar Details
  6. Validate Email-id
  7. Download the e-PANHow to get instant PAN using this functionality?

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