PAN Card

Last updated on Jun 15, 2022

A PAN card represents your Permanent Account Number (PAN) which is a 10-digit alphanumeric identifier, issued by the Income Tax Department. Each assessee (e.g. individual, firm, company, etc.) is issued a unique PAN Number. No person who has already been allotted a PAN Number shall apply, obtain or possess another PAN Number.(( Section 139A(7), Income-tax Act, 1961))

For representative purposes only.

Initially, you will have to apply for a PAN Number. When your PAN Number is ready, you will be given a PAN Card with the details of your PAN Number on the card. A PAN Card is accepted as a valid proof of identity anywhere in the country. It can also be used as proof of identity when making an application for a passport, voter ID card, driving licence, electricity connection etc.

You can also download an e-PAN, which is a digitally signed PAN Card issued in electronic format by the Income Tax Department using Aadhaar e-KYC.

PAN Number is a permanent number and once you get a new PAN number, it does not require renewal. However, the details on your PAN Card can be updated.

Hence, you may make an application for:

  • A new PAN Card when you already have a PAN Number
  • Changes or corrections in your existing PAN Card details. In this case, the new PAN Card issued to you will bear the same PAN Number but with updated information.

You(( Section 139A(3), Income-tax Act, 1961)) have the option of applying for a PAN Number as it is useful while filing taxes, setting up a bank account, etc. However, applying for a PAN Number is not always optional. It is mandatory for all existing assessees or taxpayers or persons who are required to file income returns, even on behalf of others, to have a PAN Number. It is compulsory to quote your PAN Number on return of income tax.

Further, if you intend to enter into economic or financial transactions where quoting PAN Number is mandatory, then you must have a PAN Number. These include:(( Rule 114B, Income-tax Rules, 1962))

  • Payment in cash to a hotel or restaurant against a bill/bills at any one time exceeding fifty thousand rupees.
  • Payment in cash in connection with travel to any foreign country or payment for purchase of any foreign currency at any one time exceeding fifty thousand rupees.
  • Sale or purchase of any immovable property exceeding ten lakh rupees.
  • Sale or purchase of goods or services of any nature exceeding two lakh rupees per transaction.

If you are mandatorily required to apply for a PAN Number and you fail to do so, the Assessing Officer may direct you to pay a penalty of Rs. 10,000.(( Section 272B, Income-tax Act, 1961))

If you require any additional help and support, please see here.

Read this government resource to know more.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

As you found this post useful...

Follow us on social media!

We are sorry that this post was not useful for you!

Let us improve this post!

Tell us how we can improve this post?

Leave a Reply

Your email address will not be published. Required fields are marked *

Have a question you want to ask our legal experts?

Related Resources

PAN Card for LGBTQ+ Persons

PAN (Permanent Account Number) is an identification proof mandatorily required to file taxes which is issued by the Income Tax Department.

Procedure for New PAN Number

You can apply for a PAN Number either online or in person. The online application can be made via the NSDL website.

Applying for New PAN Card

It is possible to make an application for a new PAN Card when you already have a PAN Number. The post elaborates the steps to be followed.

Updating PAN Card

When you apply for updating details, you will receive a newly issued PAN Card bearing the same PAN Number but with updated information.

Proof of Residence

To issue different kinds of proof of identification, proof of residence needs to be submitted to the authorities.

Voter ID Card

A Voter ID Card is a photo identity card that is issued by the Election Commission of India (ECI) to all individuals who are eligible to vote.