PAN or Permanent Account Number is a 10-digit alphanumeric code assigned to every taxpaying entity in India. This code helps the Income Tax Department to keep a tab on earnings and taxes paid by entities in the past and the amount of tax it has to pay for the current financial year. Information regarding an individual’s tax dues are also recorded against his/her PAN. The PAN provided to each entity will vary based the type of entity.
Types of PAN Cards
As per the Income Tax Department, it issues the following four types of PAN cards –
- PAN Card for Resident Individuals
- PAN Card for Foreigners
- PAN Card for Indian Companies
- PAN Card for Foreign Corporates
Let us know about each of these in detail:
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PAN Card for Resident Individuals
Resident individuals, HUFs, as well as NRIs, fall under this category. Such entities have to fill out form 49A to apply for this PAN card. Such PAN cards contain the photograph of the individual/head of the family (in case of HUFs). PAN card for individuals contains the photograph of the cardholder, Permanent Account Number, his name, father’s name, gender, date of birth, QR code, hologram and signature.
The procedure for applying or updating details in PAN card is the same for both residents and NRIs. However, resident individuals have to provide their Aadhaar number at the time of PAN card application.
PAN Card for Foreigners
Foreigners who want to conduct business in India have to get a PAN card issued before they can carry out financial transactions. They have to apply for PAN card for foreigners by filling out Form 49AA either online or offline. The foreign individual’s PAN card contains his photograph, name, Permanent Account Number, father’s name, date of birth, signature, hologram and QR code. Also, the eligibility for this kind of PAN is similar to that of the PAN card for Indian citizens.
PAN Card for Companies/Trusts/Partnership Firms
The Government of India has made provisions for companies, trusts, partnership firms, etc. registered in India to apply for a PAN card through various portals. They can use either the NSDL or UTIITSL portal to apply for a resident company’s PAN. Additionally, resident companies can apply for the new PAN card through MCA Portal (Ministry of Corporate Affairs) as well. PAN Cards issued to Indian companies contain the company’s name, registration date (instead of DoB), allotted PAN, QR code, hologram and date of PAN allotment.
Such companies have to fill out Form 49A to apply for a PAN card if applying through NSDL or UTIITSL portal. When applying through the MCA portal, the company has to fill out the common application form SPICe-INC 32. However, in case companies want to update their details on PAN card, they have to get it done either through the NSDL portal or UTIITSL portal by filling out Form 49A.
PAN Card for Foreign Companies
Foreign companies planning to carry out business in India have to get PAN cards issued before they can invest in the country. Such companies can apply for PAN cards directly through the NSDL or UTIITSL portal online by filling form 49AA. It takes around 45 days to get the PAN card issued and delivered to the address mentioned in the application form.
Foreign companies have to submit the following documents mandatorily at the time of PAN card Application:
- Copy of registration certificate issued in India or of approval granted to set up an office in India by Indian Authorities or,
- Copy of Certificate of Registration issued in the country where the applicant is located, duly attested by “Apostille” (in respect of countries which are signatories to The Hague Apostille Convention of 1961 or by Indian Embassy or High Commission or Consulate in the country where the applicant is located or authorised officials of overseas branches of Scheduled Banks registered in India
Foreign companies also have to mandatorily submit the document in which applicants have mentioned address of ‘Indian Tax Consultant’ as “care of” address must also provide original power of attorney notarized / attested by Apostille (in respect of countries which are signatories to the Hague convention of 1961) or by Indian Embassy/ High Commission or Consulate located in the country where an applicant is located, which specifically mentions that ‘Indian Tax Consultant’ is authorized to accept notices from the Income Tax Department on behalf of the applicant.
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PAN Card Forms for Various Types of PAN Cards
Given below are the different types of PAN card forms available:
- Form 49A: Indian nationals need to submit Form 49A to apply for a PAN card or for update/correction in PAN data. Students and minors can also submit Form 49A to apply for a PAN card.
- Form 49AA: Foreign nationals need to submit Form 49AA to apply for a PAN card
To know more on PAN card forms, click here.
FAQs
Q. Can a person possess more than one type of PAN card?
Ans. No, a person cannot hold more than one type of PAN card. If a PAN is allotted to a person, he cannot apply for obtaining another PAN. Moreover, a penalty of Rs. 10,000 is liable to be imposed under Section 272B of the Income-tax Act, 1961 for possessing more than one PAN card. In case a person has been allotted more than one PAN card then he should immediately surrender the additional PAN card(s). However, a person can get his company registered and get a new PAN card in the company’s name.
Q. What is the validity for different kinds of PAN card?
Ans. Any type of PAN card once obtained is valid for the entire lifetime of the PAN cardholder throughout India. It is not affected by change of address or change of Assessing Officer, etc. However, if the person has multiple PAN cards, he has to surrender other cards and use only one PAN.
Q. Does the new PAN card application and update fee vary for individuals and non-individuals?
Ans. No, both individuals as well as non-individuals pay the same fee when they request for a new PAN card or for an update on their existing PAN. However, the PAN Card fees may vary based on whether they apply online or offline and whether their communication address is an Indian address or a foreign address.