The solitary journey of Mr Pan Card

• Sep 01, 2021
• In Personal Finance
by Malhar Majumder

Takeaways from this writeup

1. You can apply for a PAN card at - https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html
2. You can store digital PAN card at - https://www.digilocker.gov.in/dashboard
3. Always keep the PAN data safe
4. Seeding PAN card with AADHAAR Number
5. How to surrender the PAN card after the owner expires

I remember the day in 1997 when I was asked to apply for my PAN card. I was on the verge of graduating from my Management Traineeship to a full-fledged officer in a PSU. The newly elevated social and economic status was further enhanced when I was asked to fill in the crude cyclostyled PAN application form that was handed to me. I had to wait for over three months for the PAN card to finally arrive, enclosed in an officious looking green envelope from the Income Tax department. Then it was just a laminated piece of white paper, unlike the digital avatars that we flash now-a-days. From the beginning. I was aware that the PAN card will remain my life-long friend and will be my Identity for Income Tax matters and beyond.

The 5 interesting points in a PAN card that might be helpful to anyone:

1. A minor can apply for a PAN card. However, a minor, who doesn’t have an income of her own, may quote Guardian’s PAN number if investments are made in her name.
2. A person with No Income or less than threshold income may also apply for PAN Card. Merely holding the Card doesn’t make one liable to file Income Tax Returns.
3. A Foreign Citizen / Non-Resident Indian may obtain a PAN card

The mechanics of PAN Number

The PAN number is 10 Digit Unique Alphanumeric No

1. The first 3 characters are Alphabets running from AAA to ZZZ
2. The 4^th character is a letter signifies the status of PAN holder. Where (P) stands for Person & (C) stands from Company
3. The 5^th character also is a letter signifies the 1^st letter of the Surname or the 1^st letter of the entity
4. The 6^th to 9^th characters are sequential numbers running from 0001 to 9999
5. The 10^th character is a alphabetic check digit generated by applying a algorithm on the 1^st 9 characters.

Allotment of PAN card is regulated by Section 139A of Income Tax Act 1961. Applying for more than one PAN number attracts a penalty of Rs. 10000/- under Section 272B of Income Tax Act 1961.

How to apply for a PAN?

The easiest way is to go digitally:

NSDL: https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html

With a mobile linked AADHAAR, it takes not more than 30 minutes to obtain a digital PAN card. It can be downloaded, colour printed and laminated.

Using DigiLocker service

https://www.digilocker.gov.in/dashboard

By registering to the DigiLocker service, it is easy to fetch, preserve, carry and distribute PAN card as and when required.

Security of PAN

PAN card carries critical data like your NAME, DATE OF BIRTH and FATHER'S NAME. These data are to be preserved from fraudsters and PAN details are to be shared selectively.

It is important to authenticate with date and write the purpose whenever a copy of the PAN card is furnished for any purpose.

Seeding PAN with AADHAAR number

Section 139AA of the Income Tax Act 1961 made it mandatory for resident individual who is eligible to obtain an Aadhaar and is also having PAN, to link their Aadhaar with their PAN.

You can check whether the status of your PAN & Aadhaar seeding

https://eportal.incometax.gov.in/iec/foservices/#/pre-login/link-aadhaar-status

If it is yet to be done, use the link to seed your PAN & Aadhaar

https://eportal.incometax.gov.in/iec/foservices/#/pre-login/bl-link-aadhaar

What happens to the PAN after owner expires

We handled several cases of transmission when a person expires leaving behind an Estate to be distributed to living beneficiaries.

The PAN of the expired person goes to the custody of the representative, who has to file Final Income Tax returns and complete distribution of all assets and settle of all residual liabilities.

Only after successful completion of all the above formalities, the representative may surrender the PAN by authoring a representation to the Assessing Officer under whose purview the PAN is enlisted along with the notarised copy of the Certificate of Death. That’s where the journey of a PAN card finally rests.