What is PAN Card?: Overview, Importance, Types, and Eligibility

A PAN (Permanent Account Number) is an important identification document that is issued by the Income Tax Department to all Indian Taxpayers. It is a unique 10-character alphanumeric code that contains all the tax-related information of individuals or entities. The PAN card is a primary key for all financial transactions, and it is a mandatory document for tax filing, banking, and business registration.

This guide will help you to understand the different types of PAN card and their eligibility criteria for applying. It is important to know these details before engaging in financial activities in India.

PAN Card Overview 

What is PAN Card?

A PAN card is issued by the Income Tax Department that contains a unique 10-digit alphanumeric code. The PAN card can be used as identity proof for an individual or entity for various purposes. A PAN card is a unique identifier, and it is helpful in filing the income tax return. The tax-related information of the individual is recorded against the Income Tax Databases.

PAN is a unique 10-character alphanumeric code, and it can be in the form of a physical or digital PAN card. It contains the PAN of the person along with other important information.

According to the new format of the PAN cards, all the PAN cards will have a QR code containing the details of the cardholder. The enhanced PAN 2.0 with QR code was introduced by the Income Tax Department in July 2018. This code can be used for verifying the data. It will also have the name of the cardholder, signature, the cardholder's father's/mother's (in case of single parent) name, and the cardholder's date of birth.

What Information PAN Card Contain?

The PAN Card contains different information, such as:

• Name of the cardholder: Name of the individual applicant, company, firm, or LLP.
• Date of Birth: For individuals, it contains the date of birth of the cardholder, or in case of a company or firm, the date of registration is present.
• PAN Number: It is a 10-character alphanumeric code, and each character represents information about the cardholder.
• Name of the father/mother of the cardholder: It is applicable only for the individual cardholders. The name of the father or mother (in case of a single parent) will be printed on the card.
• Signature: It is also applicable to individual cardholders. The PAN card also acts as the signature proof of the individual needed for financial transactions.
• Photograph of the Individual: PAN card acts as a photo identity proof of the individual. For the companies and firms, no photograph is present on their PAN card.

Also Want to Know About E-PAN vs. Physical PAN Card Check Now!

Permanent Account Number (PAN) Card Structure

The structure of the Permanent Account Number (PAN) is a 10-character alphanumeric code, and each of the characters represents different information about the cardholder. 

1. The first 3 letters: It contains three letters of the alphabet from A to Z.

2. The 4th letter: The fourth letter is an alphabet, and it represents the category of the taxpayer. Here are the different entities and their respective characters:

• A: Association of Persons
• B: Body of Individuals
• C: Company
• F: Firms
• G: Government
• H: Hindu Undivided Family
• L: Local Authority
• J: Artificial Judicial Person
• P: Individual
• T: Association of Persons for a Trust

3. The 5th letter: The fifth letter is the first letter of the Individual's Surname.

4. The next 4 letters: The next 4 characters are numerical, and it contains the numbers from 0-9.

5. The last letter: The last letter is an alphabet.

How Many Types of PAN Card Holders Are?

Here are the different PAN card types that are issued to tax-paying entities in India: 

• Individuals, including minors and students
• Company
• Partnership Firms
• Hindu Undivided Family (HUF)
• Trusts
• Society
• Limited Liability Partnership (LLP)
• Body of Individuals (BOI)
• Association of Persons (AOP)
• Foreigners

PAN Card Application Forms

The government of India recently replaced PAN card forms. Here they are:

• Form 93: Form 93 (formerly Form 49a) is filled out by Indian citizens, including minors, NRIs, and those living abroad.
• Form 94: This form 94 (formerly Form 49a) is filled out by Indian firms, Indian companies, and Indian BOI/AOP to obtain a PAN card.
• Form 95: This form 95 (formerly Form 49aa) is filled out by foreign citizens to obtain a PAN card. 
• Form 96: This form 96 (formerly Form 49aa) is filled out by foreign companies and organisations.
• Changes or Corrections in existing PAN/ Reprint PAN Card: People having an existing PAN card but need to make corrections or changes in their PAN card can apply for this form. People who want to reprint their existing PAN card can apply for a PAN card reprint.

PAN Card Eligibility for Indian and Foreign Citizens

All Indian citizens and NRIs should know the PAN card eligibility criteria before applying.

Who is Eligible for a PAN Card as an Indian Citizen

• Individuals: Salaried employees, self-employed professionals, and other Indian citizens with valid identity and address proof can apply for a PAN card.
• Minors: Parents or legal guardians can apply for a PAN card on behalf of a minor by submitting the child's date of birth proof along with their own identity and address documents.
• Limited Liability Partnerships (LLPs): LLPs require a PAN card to conduct financial transactions and comply with tax regulations.
• Hindu Undivided Families (HUFs): A HUF can obtain a PAN card through its Karta for tax filing and financial activities.
• Partnership Firms: Partnership firms must have a PAN card registered in the firm's name for income tax compliance.
• Local Authorities: Local authorities can apply by submitting the required registration or agreement documents.
• Companies: Every company operating in India must obtain a PAN card for tax filing and financial transactions.
• Trusts, AOPs & BOIs: Trusts, Associations of Persons (AOPs), and Bodies of Individuals (BOIs) can apply by providing their registration certificate.
• Artificial Juridical Persons: Other artificial juridical persons can apply by submitting their registration certificate or a government-issued identity document.

Who is Eligible for a PAN Card as a Foreign Citizen

All foreign citizens that engages in financial transactions in India should apply for a PAN card by providing proof of identity, address, and date of birth documents.

PAN Card Apply

You can submit the PAN card application by using the online or offline methods. 

Process to Apply PAN Card on NSDL (Protean)

1. Visit the official Protean eGov Technologies Limited Portal. 
2. Select the type of application, category, enter the details, and click on the submit button.
3. A message will be displayed on the screen with a Token number, and it will also be sent to you at your email ID. Then, click on the button that says continue with the online PAN application form.
4. Select the mode for submitting documents, and whether you need a physical PAN card or not. Fill out the application form and upload all the required documents.
5. Pay the applicable processing fee and take out the printout of the reference number or PAN acknowledgement number.
6. If you have chosen to submit the documents physically, then you need to send the documents and the filled application to the Income Tax PAN Services Unit of Protean eGov Technologies Limited.

Your PAN card is usually dispatched within 15-20 days of submitting your PAN application online or to the Income Tax PAN Service Unit office.

Process to Apply PAN Card on UTIITSL

1. Go to the UTIITSL official website.
2. Click on the option 'Click to Apply' under the tab of 'PAN Card for Indian citizen / PAN card for NRI' or 'PAN Card for foreign citizen'.
3. Select the 'Apply for New PAN Card' tab.
4. Select the mode of submitting documents, applicant's status, PAN card mode, and click on Submit.
5. You will get a reference number and click on OK.
6. Enter all the personal details like documents, contact, parents, address, and other necessary details, and click on submit.
7. Upload the required documents and then click on submit.
8. Verify the personal details on the form and then click on the 'Make Payment' button to pay the fees.
9. Once you have made the payment successfully, you need to print out the form. Then, send the form and the documents to the UTIITSL PAN PDC Incharge offices in Mumbai, Kolkata, Chennai, or New Delhi when you have selected to send the documents physically.

Process to Apply for PAN Card Offline

1. Obtain the PAN card application from the PAN centres. You can also download the PAN card Form (93-96) as per your requirement and take out a printout of the form.
2. Enter all the details on the form, affix your signature, and a recent colour photo.
3. Attach all the required documents to the application.
4. Visit the nearest PAN card centres, submit the form along with all the documents, and pay the applicable fees.

Documents Required for Different PAN Cards

The PAN card documents are submitted along with the PAN applications for various applicants. Here is the list:

What are the PAN Card Fees?

Understand the latest PAN card fees for new applications, corrections, reprints, and refunds.

How to Track PAN Card Status?

After submitting the PAN card application, you can proceed with the PAN card status check with the following process:

• Enter the application number or the acknowledgement number, the captcha code, and click on Submit.
• Your PAN card status will be displayed on the screen.

Note: PAN card processing time usually takes 15–20 working days after successful application submission and document verification. You can track your PAN card status anytime using your application or acknowledgement number.

PAN Card Download

When the PAN card is processed successfully and generated, you can download the PAN card in the digital form that is the e-PAN card, by using the process below:

• Visit the UTIITSL or NSDL website.
• Enter all the required details, such as PAN or acknowledgement number, date of birth, etc.
• Enter the OTP, pay the applicable fees, and click on 'Download e-PAN.'
• Your PAN Card Download is ready.

Process for PAN Card Update/Corrections

Here is the process through which the details of your PAN can be updated:

• Visit the Protean (NSDL) website or UTIITSL website.
• Select the type of application as PAN card corrections / PAN card Reprint.
• Enter the details you want to change, upload all the required documents, and click on the 'Submit' button.
• Pay the applicable processing fee.
• Your PAN is generally dispatched within 15-20 days.

Filling up PAN Form: Do's and Don'ts

• Make sure that your form contains relevant and current details. 
• Make sure that the complete address is filled, so that the PAN card is dispatched to the correct location.
• Do not enter any abbreviations in your first and last names. If there is an abbreviation in your name, then write its full form.
• The applicants, other than the individuals, don't have to fill in the gender, details of parents, and residence address sections. 
• The individuals are not required to fill out the office address if their source of income is not a salary, business, or profession. 
• The registration number section must be blanked for the individuals.
• You need to attach the relevant documents with your signature or thumbprints when you self-attest them.
• Incorrect information and a lack of supporting documents can lead to the rejection of your application.

Duplicate PAN Card and its Application

In case your PAN card is lost, you can apply for a duplicate PAN card online. Here is the PAN card apply process:

• You can visit the NSDL (Protean) or UTIITSL website.
• Navigate to 'Reprint uses same PAN' and then enter all the required details, such as Aadhaar number, PAN, date of birth, GSTIN (if applied), captcha code, and submit it.
• Enter the OTP on your registered number, pay the required fees, and submit it.
• The printed PAN card will be sent to you at the registered address.

Why is a PAN Card Needed?

A PAN card is necessary for many identity and financial purposes. It is a unique identification number, and here are the reasons why it is necessary for the tax-paying individuals or entities:

• Registration of a business
• Proof of Identity
• Compulsory for tax filing
• For phone and gas connection (required for KYC in some cases)
• Eligibility to open bank accounts and operate them
• Mandatory for bank deposits of more than Rs. 50,000 in a day
• Essential to complete the e-KYC for mutual fund investments
• Mandatory for cash deposits of more than Rs 50,000
• Mandatory for purchasing property and high-value vehicle purchases

PAN for e-KYC

Aadhaar PAN card link is mandatory for the e-KYC (Know Your Customer) and PAN verification to get the services and benefits from the respective service providers. For many service providers, PAN for e-KYC is a big service requirement and has large benefits for the end-user and government as well. Here are the reasons:

• Fully Digital Process: e-KYC is an online verification process that simplifies document management for service providers.
• Fast Verification: Users can securely share their verified details within minutes, eliminating the need for physical document submission.
• Secure & Tamper-Proof: Information is shared through encrypted, tamper-proof digital documents, ensuring data privacy and preventing unauthorized use.
• Legally Valid: e-KYC uses authenticated data, making it legally acceptable for verification purposes.
• Paperless & Cost-Effective: The online process reduces paperwork, saves time, and lowers processing costs for both users and service providers.

Final Thoughts

A PAN card is an important document to engage in financial activities in India for every taxpayer and individual. There are different types of PAN cards available, as per the type of entity (individual, company, trust, etc.). You can apply for a PAN card through both offline processes, and it is easy and streamlined. It will help you in accessing a wide range of investment and banking services in India.

Getting professional guidance can also be a great idea to apply for a PAN card without any errors. The experts are available 24/7 on the platform.