PAN is a computerized system that records all tax-related information for a person or corporation against a single PAN number. This serves as the main key for information storage and is shared across the country. As a result, no two tax-paying entities may have the same PAN.
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PAN Card Eligibility Criteria
A PAN card is required for every individual or non-individual (including foreign citizens/entities) receiving taxable income in India. Read on to learn more about PAN Card Eligibility.
PAN Card Eligibility Criteria for Indian Citizens
Form 49A must be used to apply for a PAN card by Indian citizens/companies/entities. Find out all you need to know about PAN card eligibility requirements and supporting papers for Indian people who wish to possess an identity for a PAN Card. Some of the most fundamental and significant criteria are listed below:
- Individual: The applicant must be an Indian citizen with proper identification, residence, and date of birth documentation.
- Hindu Undivided Families (HUFs): An HUF is a distinct legal entity. As a result, the PAN card may be used to conduct financial transactions in the name of the HUF. The head (Karta) of the family can apply for a PAN card on behalf of the family by giving his evidence of identity, proof of address, and proof of DOB, as well as the names and addresses of all the coparceners of the HUF. The Karta of the HUF must sign an affidavit outlining all of the information.
- Minors: Minors can apply for a PAN card as well irrespective of the minimum age limit misconception. A PAN card is required if they want to be a nominee for a property or make investments in their name. Minors’ parents can sign form 49A on their behalf. When submitting the form, parents’ proofs must be presented along with the child’s date of birth proof. The minor’s Aadhaar number must be entered into the form.
- Individuals with Mental Retardation: Individuals with mental retardation can also acquire a PAN if necessary. Their representatives must apply.
- Limited Liability Partnership: To get a PAN card, a copy of the Certificate of Registration issued by the Registrar of LLPs must be presented.
- Trusts: Trusts can apply for a PAN card by submitting a trust deed and a certificate of registration number provided by the charity commissioner.
- Partnership Firm: To get a PAN card, a partnership firm must submit a copy of its certificate of registration issued by the Registrar of Firms or a copy of its partnership deed.
- Companies: A PAN card for a company may be obtained online. Before applying for a PAN card, businesses must register with the state Registrar of Companies. A registration number is required. Along with the form, a copy of the Certificate of Registration issued by the Registrar of Companies is required.
- Local Authorities: Local governments can also apply for a PAN by presenting a copy of the agreement.
- Persons’ Associations: Registered associations may apply for a PAN card by providing a copy of their registration certificate.
- Artificial Judicial Person: They can apply for a PAN card by providing a registration certificate or government document proving their identity and residence.
Eligibility Criteria for Foreign Citizens / Entities:
Form 49AA can be used by foreign citizens/entities to apply for a PAN card. The following are some of the fundamental qualifying criteria for a pan card that must be satisfied to acquire a PAN card:
- Foreign Citizens/Persons: Foreign individuals who wish to conduct financial activities in India must apply for a PAN card by presenting acceptable identification and address evidence, as well as proof of date of birth.
For Indian Citizens and Entities –
Identity Proof: Passport/PIO card/OCI card, Attested TIN (Taxpayer Identification Number) or CIN (Citizenship Identification Number) from the Ministry of External Affairs, High Commission, or Indian Embassy. The applicant can also have this certified by the embassy of the nation in which he or she resides or by an authorized officer of an Indian scheduled bank branch located abroad.
- Address Proof: Passport/PIO/OCI, Attested TIN (Taxpayer Identification Number) or CIN (Citizenship Identification Number) by the Ministry of External Affairs, High Commission, or Indian Embassy. The applicant can also get this confirmed by the embassy of the nation in which he or she resides, or by an authorized officer of an Indian scheduled bank branch located abroad, Bank Statement, Certificate of registration, and residential certificate.
- For Foreigners –
They can apply for a PAN card by submitting the following papers together with PAN Form 49AA.
- A photocopy of the registration certificate issued by the nation in which the entity is located, fully attested by the Ministry of External Affairs, High Commission, or Indian Embassy. The applicant can also have this certified by the embassy of the nation in which he or she resides or by an authorized officer of an Indian scheduled bank branch located abroad.
- A copy of the Registration Certificate received in India or clearance from Indian authorities to establish a branch office in India.
Q1. What is the PAN card eligibility age?
According to Section 160 of the Income Tax Act, children are allowed to apply for a PAN card because there is no age restriction mentioned in the Act. PAN cards may be obtained for children under the age of five, and they serve as permanent identification evidence regardless of name or residence changes.
Q2. What is the PAN card’s required age?
People frequently believe that a Permanent Account Number (PAN) is only available to those above the age of 18. However, the Income Tax Department has not specified an age restriction for obtaining a PAN card, which means that children can apply for one.
Q3. Can I get a PAN Card before the age of 18?
In the event of a minor (someone under the age of 18), parents may apply for the PAN card on their behalf. There is no upper age limit for applying for a PAN card. Because a PAN card issued to a minor lacks the minor’s photo and signature, it cannot be used as a legitimate form of identification.
Q4. Is a PAN Card mandatory to open a bank account?
PAN cards are essential for the majority of financial transactions. The IT department has made linking your bank account to your PAN essential. The major reason for this is because your tax returns will be sent straight into your bank account.
Q5. Why do I need a PAN Card?
PAN Cards are essential for taxpayers since they are required for all financial activities and are used to track the entry and outflow of your money. It is necessary for paying income taxes, getting tax refunds, and communicating with the Income Tax Department. The PAN Card also functions as identification.