Permanent Account Number (PAN)

Introduction

India is one of the world’s fastest growing economies, and every year many thousands of workers from around the world move to India to start work on a temporary or permanent basis. Trying to understand the tax and administration systems in a new country can be confusing, but one of the key pieces of paperwork which anyone working in India needs is the PAN card, or Permanent Account Number.

Who needs PAN

It’s not just Indian nationals who need a PAN card to work, open bank accounts or sign up for a new phone contract, it’s many foreign workers too. The only exceptions are people employed by companies outside India who are only there for a short period and who aren’t eligible to pay tax in India. People who are running their own businesses with turnovers of around £10,000 sterling or more also must register them for a PAN card. PAN cards are needed when opening a bank account, buying or selling assets over a certain value or when paying money for overseas travel. Companies offering services such as mobile phones or rental property are also increasingly asking prospective customers for their PAN card to set up an account.

PAN for Individuals

Every Indian citizen is required to obtain a Permanent Account Number. It is a code which has 10 characters and is alphanumeric. It is in the form of “AAAAA8888A”.

A PAN card is required to be given at a number of bank transactions like opening an account at any Bank, for receiving any income, salary or professional fees.

PAN for Companies

Any Company incorporated in India and doing business here will have to mandatorily get a PAN Card. Any form of business which is generating an income will also be required to get a PAN. The PAN is to be quoted during all the financial transactions of the Company as well as in the invoices and other registrations.

Documents required to apply for a PAN card(Individual) :

Indian citizens need three types of documents to apply for a PAN card. These are an identity proof, an age proof, and a proof of date of birth.

Identity proof documents (one of):
  • Elector's photo identity card
  • Ration card having photograph of the applicant
  • Passport
  • Driving licence
  • Arm's license
  • Aadhaar card issued by the Unique Identification Authority of India
  • Photo identity card issued by the Central Government or State Government or a Public Sector Undertaking
  • Pensioner Card having photograph of the applicant
  • Central Government Health Scheme Card or Ex-servicemen Contributory Heath Scheme photo card
  • Certificate of identity in original signed by a Member of Parliament or Member of Legislative Assembly or Municipal Councillor or a Gazetted Officer, as the case may be
  • Bank certificate in original on letter head from the branch (along with name and stamp of the issuing officer) containing duly attested photograph and bank account number of the applicant
Address proof document (one of)
  • copy of the following documents of not more than three months old : electricity bill; landline telephone or broadband connection bill; water bill; consumer gas connection card or book or piped gas bill
  • bank account statement
  • depository account statement
  • credit card statement
  • copy of post office pass book having address of the applicant
  • passport
  • passport of the spouse
  • voter ID card
  • latest property tax assessment order
  • driving licence
  • domicile certificate issued by the Government
  • Aadhaar card issued by the UIDAI
  • allotment letter of accommodation issued by the Central Government or State Government of not more than three years old
  • property registration document
  • certificate of address signed by a Member of Parliament or Member of Legislative Assembly or Municipal Councillor or a Gazetted Officer
  • employer’s certificate in original
Proof of date of birth (one of):
  • birth certificate issued by the Municipal Authority or any office authorised to issue Birth and Death Certificate by the Registrar of Birth and Deaths or the Indian Consulate as defined in clause (d) of sub section (1) of section 2 of the Citizenship Act, 1955 (57 of 1955)
  • pension payment order
  • marriage certificate issued by Registrar of Marriages
  • matriculation certificate
  • passport
  • driving licence
  • domicile certificate issued by the Government
  • affidavit sworn before a magistrate stating the date of birth

Documents required to apply for a PAN card(Company) :

  • The copy of Certificate of Incorporation of the Company issued by the Registrar of Companies.
  • The Proof of address of the Company where its registered office is situated is required.
  • If the Company has no office in India, a copy of the Certificate of Incorporation from the government, where the registered office of the Company is situated which shall be apostille by the resident Country, by the Indian Embassy or by the High Commission or the Consulate of the Country where the registered office of the Company is situated. Also, the Certificate given by the Indian Authorities to set up a business in India is to be given.

PAN Modification :

There are several reasons why you may need a name change on a PAN card such as incorrect spelling, or you've actually changed your name (perhaps due to wedding or any other reason).

Documents required for revision of details on PAN card

Proof of identity, address and date of birth

  • Documents which are acceptable as proof of identity, address and date of birth (applicable for Individuals & Karta of HUF)
  • Proof of Identity, address and date of birth must be in the name of the applicant as mentioned in the application form.
  • If the applicant is a minor (i.e. below 18 years of age at the time of application), any of the documents acceptable as proof of identity and address of any of the parents/ guardian of such minor shall be deemed to be the proof of identity and address of the applicant.
  • Proof of address in the name of spouse/parents/sibling etc., will not be accepted as valid proof of address.

Proof of PAN

  • Proof of PAN is required for the PAN currently in use (i.e. existing PAN).
  • Proof of PAN is also required in case of cancellation request for any PAN
  • Proof of PAN can be one of the following only: Copy of PAN card; or Copy of intimation letter issued by the Income Tax Department in lieu of PAN card intimating PAN ;In case one of the above proofs are not available, a copy of FIR (stating loss of PAN card) can be submitted.
  • Proof of address in the name of spouse/parents/sibling etc., will not be accepted as valid proof of address.

Proof for change requested

The applicant shall be required to provide further documentary proof to support request for correction or change in PAN data like name, father's name, date of birth, for example:

  • Request for change (marginal correction like spelling correction, expansion of initials, etc.,) in applicant's or father's name will have to be supported with suitable proof of identity containing corrected data.
  • Request for change (significant change) in applicant's or father's name will have to be supported with such proof that will contain proof of change of name from the old to the new in addition to the proof of identity. The documents that shall be accepted as proof in this case are:
    • For married ladies - change of name on account of marriage - marriage certificate, marriage invitation card, publication of 'name-change' in gazette, copy of passport showing husband's name (or vice versa).
    • For individual applicants other than married ladies- publication of `name-change' in gazette.
    • For companies - ROC's certificate for name change.
    • For partnership firms - revised Partnership Deed
    • For other categories which are registered organisations (AOP/Trust/BOI/AJP, etc.) - the revised registration/deed/agreement.
    • For Limited Liability Partnership - Registrar of LLPs certificate for name change
  • Request for correction of date of birth (for individuals) and date of incorporation (non-individuals) will have to be supported with documents issued by competent authority containing the correct date.
  • The address for communication in the ITD database will be updated with the address for communication mentioned in the application, even if change in address for communication is not requested in the application.