PAN Card Eligibility

A PAN card is required for every individual or non-individual (including foreign citizens/entities) receiving taxable income in India. It is also an essential document for various financial transactions. Therefore, it is important for every individual to apply for a PAN Card. Read on to learn more about PAN Card Eligibility.

Who can Apply for a PAN card?

The minimum age for Pan Card application is 18 years. Any individual who fulfills the PAN card eligibility age and falls under the following categories can apply for a PAN Card:

• Adults: Individuals above 18 years can apply for a PAN Card using a valid ID and address proof.
• Minors:  Minors can also apply for PAN card. In this case, parents or guardians can fill the application form and apply for a Pan Card on behalf of the minors.
• Foreign citizens: Individuals residing in India for more than 182 days in a financial year or carrying out financial transactions requiring a PAN are eligible.
• Entities: Various entities like companies, firms, Hindu Undivided Families (HUFs), trusts, and associations can also apply for a PAN card.

PAN Card Eligibility for Indian Citizens

Form 49A must be used to apply for a PAN card by Indian citizens/companies/entities. Along with the essential documents, one must also fulfill the Pan Card eligibility criteria that are mentioned below:

• Individual: The applicant must be an Indian citizen with valid identification, residence, and date of birth proofs.

• 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.

PAN Card Eligibility for Foreign Citizens 

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.

Documents Required for PAN Card Application

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.

Benefits of PAN Card

A PAN Card is necessary for the following purposes:

• To submit income tax returns.
• It acts as an identification proof.
• To open a new bank account and depository account.
• To apply for a credit card and a bank loan.
• For the sale or acquisition of immovable property valued at Rs. 5 lakh or more.
• Any payment to a restaurant that exceeds Rs.25000.
• Depositing a sum of Rs.50000 or more into a bank account.
• For the buying or selling of an automobile or other vehicle (apart from a two-wheeler).
• Payments of Rs. 50000 or more for investment purposes.