Introduction
In India, where every financial transaction is traceable and accounted for transparently, the PAN (Permanent Account Number) card serves as a foundation for personal and business identification. The PAN card is issued by the Income Tax Department and is a 10-digit alphanumeric identification number — it’s an identity that is far more than just a tax document; it’s your key to everything from opening a bank account to buying real estate. For salaried employees, business owners, or foreigners earning within India, knowing the importance, format, types, and process of the PAN card is critical.
In this guide, you will learn everything you need to know about PAN cards in India, expressed in simple, actionable pointers.
1. PAN Card Overview
Before walking through the details of the PAN card, get a quick snapshot of the key details governing its purpose and where to apply.
| Pan Card Overview Key Details | Dimensions |
|---|---|
| Authority | First issued in 1972 to extend taxation and promote financial transparency |
| Customer Care | PAN help line available: 020-27218080 |
| Year of Inception | e-PAN is ₹66, and physical PAN for delivery outside India can be as much as ₹1,017 |
| Tenure or Validity | Valid for lifetime unless modifications and corrections are required |
| Charges | Can be applied for online, via either NSDL/ UTIITSL or offline, via PAN-authorized centres |
| Application | Can be applied for online, via either NSDL/ UTIITSL or offline, via PAN authorized centres |
2. What is a PAN Card?
A PAN (Permanent Account Number) card is a 10-digit alphanumeric identification number issued to all taxpayers in India. The PAN card aids the government in tracking taxable financial transactions and is aimed at financial transparency. The PAN card is also required for:
- Filing income tax returns (ITRs).
- Opening bank accounts.
- Investing in securities or mutual funds.
- High-value financial transactions, such as purchasing property or vehicles.
3. PAN Card Contents (Explained)
1. Name of the Cardholder
Appears exactly as it appears with the official identification documents. For individuals, it enables matching with bank records, investment documents, and government-identification documents.
2. Father’s or Mother’s Name
Necessary for individual applicants. Used as an added layer of verification and is useful in e-verification systems.
3. Date of Birth (or the Date of Incorporation)
Essential for age-based tax exemptions or eligibility criteria. In the case of companies, PAN uses the date of incorporation/registration.
4. PAN Number
The unique identifier in this format: ABCDE1234F.
- First three: Alphabetic sequence
- Fourth: Entity type, e.g., P for Individual
- Fifth: First letter of surname (or name of entity)
- Next 4: Unique Number
- Last one: Alphabetic Check Digit
5. Signature
Just for individuals. Current authentication of a wide array of documentation in finance and at Know Your Customer (KYC) gateways.
6. Photograph
Only individuals get their photo on the PAN card. PAN card has dual use as a photo ID in a wide variety of contexts.
7. QR Code
This was launched in 2017, so that the cardholder could validate authenticity by scanning their QR, using their app/scanning system.
4. Structure of Permanent Account Number (PAN)
Each character in the PAN holds specific information:
- First 3 Letters: Random alphabetical sequence.
- 4th Character: Category of taxpayer:
- P – Individual
- C – Company
- H – Hindu Undivided Family (HUF)
- F – Firm
- T – Trust
- 5th Character: First letter of surname (for individuals) or entity name.
- Next 4 Characters: Numeric series from 0001 to 9999.
- Last Character: Alphabetic check digit for system validation.
5. Types of PAN
The PAN (Permanent Account Number) is not limited to just individuals. The Income Tax Department of India issues PANs to many kinds of entities that are required to file taxes or want to perform any financial transactions in India. Each PAN is uniquely designed based on the type of applicant through the fourth character in the PAN.
Let’s take a closer look at the types of PAN:
1. Individual
This is the most typical PAN. It is issued to Indian individuals, including salaried employees, freelancers, self-employed professionals, and even minors and senior citizens. Non-Resident Indians (NRIs) can ultimately apply to get this PAN.
2. Hindu Undivided Family (HUF)
HUF is a family that is assessed as one unit for tax purposes under Hindu law. The mean male member (Karta) usually manages the HUF and issues PAN in the name of the HUF and not the individual members.
3. Company
Companies registered with the Companies Act in India (private limited, public limited, and one-person companies) can only apply for a PAN, which is necessary for tax filing, opening bank accounts, or undertaking financial transactions.
4. Partnership Firm
Firms that have been created through a partnership deed between two or more individuals will need to apply for a PAN in the name of the firm. PANs are a requirement even if the firm is not generating any amount that is taxable income, particularly if it is going to be opening a bank account or registering for GST.
5. Limited Liability Partnership (LLP)
An LLP, which is similar to partnership firms, has further sophistication and legal protection, and requires PAN for operational and taxation purposes.
6. Trust
PAN can be issued to private charities and public charitable trusts. This is effective for tax exemption and helps create transparent and traceable transactions.
7. Association of Persons (AOP)
An AOP is made up of two or more people for a common initiative, such as a joint venture. PAN is mandatory for the AOP as a unitary taxpayer entity.
8. Body of Individuals (BOI)
Similar to AOP but typically without a formal agreement, a BOI consists of individuals carrying out an activity collectively. A PAN is required for tax filing and business transactions.
9. Local Authority
Entities like municipal bodies, district boards, and other local governing institutions that engage in financial transactions or receive government funds must also have a PAN.
10. Artificial Juridical Person
This includes legal entities like temples, educational institutions, or other bodies that are not human beings but are recognized by law as persons capable of rights and duties. These entities are also issued a PAN for legal and financial activities.
6. PAN Card Forms
1. Form 49A
For Indian citizens (including minors and NRIs) applying for a new PAN.
2. Form 49AA
Meant for foreign individuals and entities operating or investing in India.
3. Correction/Reprint Form
Used for updating or reissuing a lost/damaged PAN card.
7. PAN Card Eligibility
PAN cards are required for everyone and every entity that performs financial or taxable activities in India. Here are the eligible categories:
1. Individuals (citizens of India)— residents (including salaried employees, freelancers, or even minors (with a guardian)) can apply for a PAN card.
2. NRIs (non-resident Indians)— NRIs earning income or holding an asset in India are eligible for a PAN card.
3. Foreign Citizens / Foreign Entities— Foreign citizens and foreign companies doing business in India or earning income in India are liable to apply for a PAN card.
4. Hindu Undivided Family— the head of the family (Karta) must apply on the family’s behalf (or declare that it operates as a family unit).
5. An entity that is treated as a business— this includes companies, LLPs, partnership firms, trusts, societies, AOPs/BOIs, and local authorities.
6. Anyone making cash transactions valued $50,000— also applies for the following activities that require a PAN:
- opening a bank account—
- investing in mutual funds—
- purchase of property or vehicle—
- depositing $50,000 or more in 1 business day—
In summary, if you are either earning income or managing capital in India, you are eligible (and probably required) to hold a PAN card.
8. PAN Card Application (Online/Offline)
Applicants can choose:
- Online via NSDL or UTIITSL portals
- Offline by visiting a PAN service center and submitting the required documents
9. Applying Through NSDL
- Visit https://www.tin-nsdl.com
- Choose the application form based on your type
- Fill the form, upload documents, and pay the fee
- Submit and receive a 15-digit acknowledgment number
- PAN card is delivered within 15–20 working days
10. Applying Through UTIITSL
- Visit https://www.utiitsl.com
- Choose the applicable option (Indian/Foreign citizen)
- Fill the form and upload the required documents
- Pay the applicable fee
- Receive the PAN within 15 days
11. Offline PAN Application Process
Even though online modes of applications are prevalent and seem to be predominant at this time, an offline option is available for the users of PAN cards who may choose to apply personally or do not have internet access or are being catered to by an accountant who is multiple individuals, such as employees filing with their respective companies. Applications can be completed in a step-by-step process explained below:
1. Obtain the Correct Form
Form 49A (for citizens of India) should be downloaded from either the NSDL website or the UTIITSL website, and Form 49AA (for foreign citizens) from the UTIITSL website or the NSDL website.
If you want a paper copy, you may receive the same forms via PAN or authorized PAN services, with physical copies available.
2. Complete the Forms
Enter the various personal details clearly and in full detail, including name, date of birth, gender, residence address, and contact information.
Select if you want a new PAN card issued for you or a new e-PAN, or a combined option to get both a physical and a digital form of a PAN card.
3. Provide Identity Documentation
For Individuals:
- Proof of Identity (Aadhaar card, Passport, Voter ID).
- Proof of Address (recent utility bill, Bank Passbook, rent agreement).
- Proof of Date of Birth (birth certificate, 10th Standard Marksheet).
Additional documentation for the other types of entities or organizations (i.e., registration certificate for companies and trusts).
4. Include 2 Photos and Signature
Provide 2 recent passport-sized photographs in the allotted boxes.
You must sign in the designated signature areas (if you are a minor, the parents/guardians will sign the application on your behalf).
5. Submit Form
Bring the completed application together with your supporting documentation to the nearest PAN facilitation center or TIN-FC.
6. Pay the Application Fee
- Pay via cash, demand draft, or at times, card (depending on the center).
- Charges:
- ₹107 for PAN delivered in India
- ₹1,017 for delivery outside India
- ₹66–72 for e-PAN only
7. Track Your Application
- After submission, you’ll receive an acknowledgment receipt.
- Use the acknowledgment number to track your PAN card status online
12. Documents Required
For Individuals:
- Identity Proof: Aadhaar, Passport, Voter ID
- Address Proof: Bank passbook, Utility bills
- Date of Birth Proof: Birth certificate, 10th mark sheet
For HUF:
- Affidavit by ‘Karta’ + ID and address proof
For Companies:
- Certificate of Incorporation from the ROC
For Partnerships/LLPs:
- Registration certificate or partnership deed
For Trusts/Societies:
- Trust deed or registration from the charity commissioner
For Foreigners:
- Passport, OCI/PIO card, Tax ID, Residence permit
13. PAN Card Fees
| Fee Type | Amount | Remarks |
|---|---|---|
| Physical PAN (India) | ₹107 | For Indian residents applying and requesting a physical card |
| Physical PAN (Outside India, International Delivery) | ₹1,017 | Applicants requesting international delivery |
| e-PAN Only ( e-PAN only) | ₹66 – ₹72 | For e-PAN cards (digital PAN card) sent to your email |
| A slight variation of the paperless application is available | Differences exist | Charges might argue with the differences for using a paperless mode |
14. PAN Card Status
Track application status via:
- NSDL: https://tin.tin.nsdl.com/pantan/StatusTrack.html
- UTIITSL: https://www.trackpan.utiitsl.com/PANONLINE
Use the acknowledgment number to get real-time updates.
15. Downloading an e-PAN
Steps:
- Visit the NSDL/UTI website
- Fill in the acknowledgment or PAN number
- Verify by entering an OTP (One Time Password)
- Download digital PDF PAN (No Charge for 30 days)
16. Updating/Correction of a PAN Card
a. Select the correction/reprint form on the NSDL homepage or the UTI website/accomplish the first two steps as above
b. Fill in the Details that are to be changed.
c. Upload supporting documents
d. Submit application as well as fees
The correction includes name spelling, date of birth, address, or contact number.
17. Do’s and Don’ts of a PAN card
Do’s:
• Keep to your full name normally and limited to few name (e.g. ‘G’)
• Fill in where you have written the name and details
• Self-attest all supporting document
• Use the sameful details in all documents
You shouldn’t:
• Don’t provide false or misleading information
• Don’t submit expired or unclear proof of supporting documents
• Don’t leave required section blank
18. Duplicate PAN Card
If PAN Card is lost or destroyed:
- Apply on-line via NSDL/UTI (follow steps 1 and 2 as above)
- Select “Reprint PAN” option
- Fill in Aadhaar and PAN information
- Pay Fees
- New PAN card would be received in the post.
19. Why You Need PAN
A Permanent Account Number (PAN) is more than just a tax identification number, it is necessary for a number of financial and official matters in India. It brings conformity and accountability into the financial system and minimizes tax evasion. A PAN card is a valid proof of identity.
Here’s Why You Need To Obtain a PAN Card:
Filing Income Tax Returns
A PAN card is mandatory in order to file income tax returns in India. With no PAN, individuals and businesses cannot comply with the law and would not be permitted to apply for tax refunds.
Opening Bank Accounts
For any type of bank account, whether it be savings, current, or fixed deposit, you will need a PAN card to be processed through KYC verification and activate the account.
High Value Transactions
There are several different transactions that may occur that will require you to provide your PAN card, including:
- Depositing ₹50,000 or more into a bank account in a single day
- Purchasing or selling property valued above ₹10 lakh.
- Purchasing a vehicle, other than two-wheeled vehicles.
- Buying mutual funds, bonds, or debentures if the amount is above ₹50,000.
- Making cash payments, ₹50,000 or more in total for insurance premiums or travel tickets.
Applying for Credit or Debit Cards
Credit cards and high-limit debit cards are generally issued by most banks and financial institutions after collecting PAN details.
Starting a Business or Company Registration
Business, LLP and company registration are all linked to obtaining a PAN for registration, tax filing and transparency of financial transactions.
Purchase of Foreign Currency
As long as the conversion is over ₹50,000 from Indian Rupee to foreign currency, the PAN number will also be required as part of the process.
Stock Market & Mutual Fund Investment
A PAN card is necessary for a demat account, as well as the purchase of securities or a mutual fund.
KYC & Verification for Services
PAN is always a very effective method of meeting Know Your Customer (KYC) standard for your bank, telecom service, government subsidy etc.
Access to Government Subsidies
Many government subsidy schemes have now been designed to obtain PAN for your application so that they eliminate duplicates and streamline delivery.
When Applying for Loans or Financial Products
Whenever you are applying for personal loans, home loans, car loans, any financial product, your PAN will be the standard required identifier.
20. PAN for e-KYC
In the digital world, Know Your Customer (KYC) protocols have grown – simpler, speedier, and paperless, largely due to the connection of PAN with e-KYC processes. A PAN card is indispensable when it comes to verifying customers’ identities securely and digitally for financial, and government services.
What is e-KYC?
Electronic Know Your Customer (e-KYC) is a paperless process that allows service providers (such as banks, telecom companies, and mutual fund houses) to electronically verify the identity of a customer using PAN, Aadhaar, or other documents.
How PAN Helps with e-KYC:
- Quick Customer Identification
Using a PAN card number, representatives can instantly verify a person’s financial identify, and tax statuses, with databases managed by Permitted Portfolio Committees.
- Illegally Mandatory for Financial Services
e-KYC based on a PAN is useful for services such as opening a banking account, investing into a mutual fund, applying for a credit card, etc.
- Provides Easier Paperless Documentation
The beauty of PAN being used for e-KYC, is that customers do not have to physically or manually submit identity and address proofs resulting in less paperwork.
- Allows Secure & Tamper-Proof Data Exchange
Data shared through PAN based e-KYC is encrypted, and authenticated through legal processes thereby not allowing further tampering, fraud, or unauthorized exchanges.
- Fast and Cost-Effective
PAN e-KYC significantly reduces the time, effort, and cost involved in onboarding customers across sectors.
- Useful for Government Schemes
e-KYC via PAN is accepted for verifying beneficiaries under government welfare schemes and subsidies.
- PAN-Aadhaar Linking Boosts e-KYC Use
With PAN linked to Aadhaar, the combined data helps create a more robust and reliable KYC verification process.
Frequently Asked Questions
1: Can I apply for a PAN card online?
Yes, it is hassle-free to apply for a PAN card online, via the official NSDL or UTIITSL portals. Applicants will visit either site, fill in the form (Form 49A applies to Indian Citizens), upload supporting documents like proof of identity/address/date of birth, and pay the processing fee. Once submitted, the applicant will get an acknowledgement number which can be used to track the progress of the application
2: Where do I submit my PAN Form, in a physical form?
When applying via offline method, your completed PAN application form (physical) should be submitted with copied supporting documents at your chosen PAN center. Alternatively, it can be posted and/or couriered to the PAN service unit of either NSDL or UTIITSL, depending on the service provider used for the application.
3: Am I able to change the details on my PAN card?
Yes! You can change any details in your PAN card by submitting a change form and this comes in handy if there are typos siuch as spelling errors, incorrect DoBs or obsolete details on the PAN card. You will need to provide acceptable proof to make the requested changes and you must submit either online or offline to the PAN issuing Authority.
4: Is it illegal to hold multiple PANs?
Yes. A individual or entity is not legally permitted to hold more than one PAN card. Having duplicate PAN cards is punishable under Section 272B of the Income Tax Act, it may be penalized with ₹10,000 for each additional PAN held. The government does not allow individuals or entities to carry more than one PAN.
5: Is it compulsory to link PAN-Aadhaar?
Yes, the PAN-Aadhaar linkage is compulsory for all residents of India. This linkage helps with limiting tax evasion and any frauds linked with tax evasion and enables flow of transparent financial transactions. If PAN is not linked with Aadhaar in the specified time, then PAN may become inoperative and hinder a person’s ability to complete any task requiring use of PAN.
6: Is there a charge to download an e-PAN?
If you want to download e-PAN after the 30 days of allotment, a nominal fee of ₹8.26 is charged (inclusive of taxes). e-PAN can be downloaded from the official portals of NSDL or UTIITSL and it is a PAN card issued in electronic mode(SIG) by the Income Tax Department.
7: How long does it take to get a PAN card?
After application and verification, it takes around 15-20 working days to be processed and delivered to the applicant’s registered address. There are some cases which may get delayed due to discrepancy in the documents or postal delay reasons and such cases are dealt with accordingly.
