PAN Application Procedure in India: A Step-by-Step Guide

March 20, 2023 Posted by India Briefing Written by Naina Bhardwaj Reading Time: 9 minutes

In India, the 10-character alphanumeric PAN, which stands for permanent account number, is imperative for locals as well as foreign nationals and investors doing business in the country. In this article, we highlight the main procedures on how to get a PAN, which transactions mandate having a PAN for KYC purposes, and the government’s rules on financial transactions that require providing the PAN identification.

In India, a Permanent Account Number (PAN) is a unique ten-digit alphanumeric identity assigned by the Indian income tax authorities to every tax-paying entity and individual, including foreign nationals wishing to invest or conduct business in India. It serves as a valid identity proof and is essential for most tax-related and financial purposes.

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The alphanumeric code is computer-generated and unique to the PAN cardholder. This key feature enables the recording of all tax-related information against a single PAN number, which acts as a repository of an individual’s financial information. The tax department uses the PAN number as a universal identification key to monitor financial transactions that may have taxable components, to prevent tax evasion and to ensure compliance with applicable tax laws.

With a PAN card, individuals and non-individuals can purchase and sell assets, conduct financial transactions, and avail government subsidies.

When is it mandatory to obtain a PAN?

For individuals

Although obtaining a PAN is optional and voluntary, it is essential to apply for it since PAN is mandatory for every transaction with the income tax department and most high-value financial transactions. These include opening a bank account, receiving taxable income or professional salary, and buying or selling assets above specified limits, among others.

Under Indian income tax law, certain categories of individuals must apply for a PAN, including:

Anyone whose total income exceeds the maximum amount not chargeable to tax
A person who is liable to pay service tax and their agent
Anyone who carries on any business or profession whose total turnover or gross receipts exceed the threshold limit in a year
Anyone required to file a return of income
Every importer and exporter who is required to obtain an import or export code
Every importer and exporter who intends to register as manufacturers, traders, or service providers in India
Anyone who intends to enter into specific financial transactions where quoting of PAN is mandatory

Transactions where PAN is mandatory

Every person shall quote their PAN in all documents pertaining to the following transactions specified in Income-tax Rule 114B.

Transactions specified in Rule 114B	Value of transaction
Motor vehicle (other than two-wheeler)	All sales/purchases
Opening an account (other than time deposit) with a banking company	All new accounts
Application for a credit card or debit card	All transactions
Opening demat account	All transactions
Payment to a hotel or restaurant	Payment in cash of an amount exceeding INR 50,000
Payment in connection with travel to any foreign country or payment for the purchase of any foreign currency at any one time	Payment in cash of an amount exceeding INR 50,000
Payment to a mutual fund for the purchase of its units	Amount exceeding INR 50,000
Payment to a company or an institution for acquiring debentures or bonds issued by it	Amount exceeding INR 50,000
Payment to the RBI for acquiring bonds issued by it	Amount exceeding INR 50,000
Deposit with a bank, a cooperative bank, or a post office	Deposits in cash exceeding INR 50,000 during any one day Cash deposits aggregating to INR 2 million or more in the financial year in one or more accounts
Cash withdrawal or withdrawal from one or more accounts with a bank or a post office	Amount aggregating to INR 2 million or more in the financial year
Opening a current account or cash credit account by a person with a bank, a cooperative bank, or a post office
Purchase of bank drafts, pay orders, or banker’s checks from a banking company or a co-operative bank	Payment in cash for an amount exceeding INR 50,000 during any one day
A time deposit a) With a banking company or a co-operative bank b) Post office c) Nidhi company d) Non-banking financial company	Amount exceeding INR 50,000 or aggregating to more than INR 500,000 during a financial year
Payment for one or more pre-paid payment instruments	Payment in cash or by way of a bank draft or pay order or banker’s check of an amount aggregating to more than INR 50,000 in a financial year
Payment as life insurance premium to an insurer	Amount aggregating to more than INR 50,000 in a financial year
A contract for sale or purchase of securities (other than shares)	Amount exceeding INR 100,000 per transaction
Sale or purchase, by any person, of shares of a company not listed in a recognized stock exchange	Amount exceeding INR 100,000 per transaction
Sale or purchase of any immovable property	Amount exceeding INR 1 million or valued by stamp valuation authority referred to in section 50C of the Act at an amount exceeding INR 1 million
Sale or purchase, by any person, of goods or services of any nature other than those specified above	Amount exceeding INR 200,000 per transaction

Minor to quote PAN of parent or guardian

Where a minor has entered into any transaction referred to in Rule 114B and does not have any income chargeable to tax, they shall quote the PAN of their father, mother, or guardian in documents pertaining to the said transaction.

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One can apply for a PAN card both online and offline.

Here’s a detailed guide on how to apply for a PAN card online through the Protean eGov Technologies platform or UTIITSL website and offline using Form 49A and 49AA.

How to apply for a PAN card online?

PAN card online through Protean eGov Technologies

Step 1: Online PAN application on the official portal of Protean eGov Technologies
Step 2: Select the application type: new PAN for Indian citizens, foreign citizens, or correction of existing PAN data.
Step 3: Select a category (individual, association of persons, body of individuals, etc.).
Step 4: Complete the PAN form by entering all necessary information, including name, date of birth, email address, and mobile number.
Step 5: The user will receive notification of the following step after submitting the form.
Step 6: Click on the “Continue with the PAN Application Form” button.
Step 7: The user will be redirected to the new page where they have to submit their digital KYC.
Step 8: Determine whether a physical PAN card is required and enter the final four digits of the Aadhar number.
Step 9: Fill up the form’s next section by entering the contact information and other details.
Step 10: Fill out the section of the form that requires the area code, the type of Assessing Officer (AO) code, and other information.
Step 11: The document submission and declaration are the last two sections of the form.
Step 12: To submit the application, enter the first eight digits of the PAN card. The user will get to see the completed form. Click “Proceed” if no modification is required.
Step 13: Select the e-KYC option to verify using an Aadhaar OTP. For proof of identity, address, and date of birth, select Aadhaar in all fields and click on proceed to continue.
Step 14: The user will be redirected to the payment section, where they have to make payment either through a demand draft or through net banking, debit or credit card.
Step 15: A payment receipt will be generated on successful payment. Click on “Continue”.
Step 16: Now for Aadhaar authentication, tick the declaration and select the “authenticate” option.
Step 17: Click on “Continue with e-KYC,” after which an OTP will be sent to the mobile number linked with Aadhaar.
Step 18: Enter the OTP and submit the form.
Step 19: Now click on “Continue with e-Sign,” after which the user will have to enter the 12-digit Aadhaar number. An OTP will be sent to the mobile number linked with Aadhaar.
Step 20: Enter the OTP and submit the application to get the acknowledgement slip in pdf format with the user’s date of birth as the password in DDMMYYYY format.

PAN card application through UTIITSL portal

Step 1: Visit the UTIITSL PAN card application page and under PAN Services, select ‘PAN Card for Indian Citizen/NRI’
Step 2: Click on ‘Apply for a New PAN Card (Form 49A)’
Step 3: Select either the “Physical Mode,” which requires the user to submit the printed-signed application form to the nearby UTIITSL office, or the “Digital Mode,” which allows the user to sign the application form electronically using DSC mode or Aadhaar-based eSignature without submitting the paper copy.
Step 4: Complete the personal information and other required fields.
Step 5: Check the accuracy of the information entered and press the “Submit” button.
Step 6: After verification, proceed to make the payment online by selecting either Bill Desk or PayU India from the list of available payment gateways. The user can use their debit or credit card, net banking, cash card, etc.
Step 7: Following a successful transaction, the user will receive a payment confirmation.They have the option of saving it or printing it out.
Step 8: Attach two passport-sized photos (3.5 x 2.5 cm) to the printed form and sign in the space provided.
Step 9: Submit the application online or mail it to the closest UTIITSL office along with a copy of the identification, address, and date of birth proof documents for processing and issuance of the PAN Card.

How to apply for a PAN card offline?

Step 1: Obtain a PAN card application from a TIN (Taxpayer Identification Number) facilitation center, a PAN center, or a vendor selling such forms. Please take note that while non-citizens must use Form 49AA to apply, Indian citizens must use Form 49A.
Step 2: Review the form’s instructions in detail. Afterwards, complete this form by using block letters (in black ink).
Step 3: Affix two recent color photographs with a white background (3.5 x 2.5 cm). Sign across these photographs so that part of them is on the white paper.
Step 4: Pay the required fee, depending on citizenship. Foreign residents can only pay via credit card, debit card, or demand draft payable in Mumbai.
Step 5: Send identity proof, address proof, demand draft, if applicable, and the completed form to the Income-Tax PAN Services unit at the following address:
- NSDL e-Governance Infrastructure Limited, 5th floor, Mantri Sterling, Plot No. 341, Survey No. 997/8, Model Colony, Near Deep Bungalow Chowk, Pune – 411016

PAN card fees and charges

PAN Card Fees and Charges in India
Particulars	PAN card fees (Inclusive of applicable taxes)
In case the communication address is an Indian address
Mode of application	If physical PAN card is required	If physical PAN card is not required (e-PAN card will be sent at the email id mentioned in the PAN application form)
PAN applications submitted at TIN facilitation centers or PAN centers/online using physical mode (physical documents forwarded to NSDL e-Gov)	INR 107	INR 72
PAN applications submitted online through paperless modes (e-KYC & e-Sign /e-Sign scanned based /DSC scanned based)	INR 101	INR 66

PAN Card Fees and Charges for Citizens Outside the Country
Particulars	PAN card fees (Inclusive of applicable taxes)
Communication address is a foreign address
Mode of application	If physical PAN card is required	If physical PAN card is not required (e-PAN card will be sent at the email id mentioned in the PAN application form)
PAN applications submitted at TIN facilitation Centers or PAN Centers/online using physical mode (physical documents forwarded to NSDL e-Gov)	INR 1,017	INR 72
PAN applications submitted online through paperless modes (e-KYC and e-Sign /e-Sign scanned based /DSC scanned based)	INR 1,011	INR 66

Charges for Reprint or Changes in PAN Card in India and Abroad (PAN cardholders who have lost or damaged their PAN card can get their PAN Card reprinted by paying the following charges)
Communication address within India	Communication address outside India
INR 50	INR 959

Charges for Reprint or Changes in PAN Card in India and Abroad

(PAN cardholders who have lost or damaged their PAN card can get their PAN Card reprinted by paying the following charges)

Communication address within India

Communication address outside India

INR 50

INR 959

Documents required for PAN application

The mandatory documents required to apply for a PAN card may be different for different taxpaying entities.

Tax paying entity	List of documents
Individual	Identity proof, address proof, and date of birth proof
Association of Persons (AOP)	A registration certificate number or agreement copy issued by the charity commissioner or the registrar of a co-operative society
Companies	A registration certificate issued by the Registrar of Companies
Limited Liability Partnership (LLP)	Partnership deed and registration certificate issued by the Registrar of Companies
Hindu Undivided Family (HUF)	An affidavit that is issued by a family head (karta) stating the details of all coparceners (i.e., each inheritor of the undivided estate)
Trusts	A registration certificate number issued by a charity commissioner
Foreign applicants	Copy of passport, address proof, and documents establishing the applicant’s identity, such as, Person of Indian Origin (PIO) card or Overseas Citizen of India (OCI) card

Documents Required for Individuals
Identity proof	Address proof	Birth proof
Aadhaar card	Aadhaar	Aadhaar
Elector’s photo identity card	Elector’s photo identity card	Driving license
Driving license	Driving license	Matriculation certificate
Passport	Passport	Birth certificate
Ration card	Passport of spouse	Passport
Arm’s license	Post office passbook	Elector’s photo identity card
Pensioner card	Most recent property tax assessment order	Government-issued photo identity card
Central government health scheme card	Domicile certificate	Domicile certificate
Certificate of identity in original signed by a Member of Parliament (MP)	Allotment letter of accommodation issued by Central or State Government	Pension payment order
Original bank certificate	Property registration document	Marriage certificate

Documents Required for Foreigners
Identity proof	Address proof
A photocopy of passport	A copy of passport
A photocopy of PIO card issued by the Indian government	A photocopy of PIO card issued by the Indian government
A photocopy of OCI card issued by the Indian government	A photocopy of OCI card issued by the Indian government
A copy of TIN or other national or citizenship identification number, which has been duly attested by an “Apostille” (where applicable) or by an Indian Embassy, High Commission, or Indian Consulate where the applicant currently resides Apostille – It refers to the specialized certificate (international attestation) that is accepted by countries that participated in the 1961 Hague Convention Abolishing the Requirement of Legalization for Foreign Public Documents. The certificate is accepted in nearly 92 countries and works as a way of authentication to validate the documents.	A copy of their TIN or other national or citizenship identification number that has been duly attested by an “Apostille” (where applicable) or by an Indian Embassy, High Commission, or Indian Consulate where the applicant currently resides
	A statement of a bank account they hold in their country of residence
	A statement of a non-resident external bank account that they have in India
	A copy of their certificate of residence in India or a residential permit received from a State Police Authority in India
	A copy of the registration certificate issued by the Foreigner’s Registration Office validating their Indian address

The letter of employment or contract given by the employer must also be presented by a foreign employee in India. Also, the employee’s Indian address must be provided by the company and attested to. An official copy of the employee’s visa is also required.

Editor’s Note: This article was first published in August 2013. It was last updated on March 20, 2023.

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PAN Application Procedure in India: A Step-by-Step Guide