PAN Card Eligibility

A Permanent Account Number or PAN card is a requirement for every taxpayer or anyone who conducts business in the country. The Government of India has made it compulsory for individuals and entities to quote their PAN cards while carrying out several transactions in the country. Any individual or entity can make a PAN card application in India for themself or on behalf of others. In this blog, we will look at PAN card eligibility for the various kinds of individuals and entities in the country.

PAN Card Eligibility for Indian Citizens 

The PAN Card eligibility criteria for Indian citizens who wish to apply for a PAN card varies according to the type of applicant. Mentioned below are the basic eligibility criteria for PAN card eligibility:

• Individuals: The PAN card applicant should be an Indian citizen with a valid address, ID, and date of birth proof. This can either be an Aadhaar Card, Voter ID Card, passport, or driving license.

• Hindu Undivided Families: The Karta of a Hindu Undivided Family can apply for a PAN on behalf of the family by providing valid identification proof, date of birth proof, and address proof for all family members.

• Minors: A parent or legal guardian can make a PAN card application on behalf of a minor by providing a valid address, identity, and date of birth proof.

• Indian Citizens Residing Abroad: If the applicant is an Indian citizen who resides outside the country, they should provide a copy of their bank account statement in the present country of residence as address proof.

• Mentally impaired Individuals: People deemed mentally impaired are also eligible to obtain a PAN card in India. The application for the same needs to be submitted by their legal representative.

PAN Card Eligibility for Indian Companies

Companies and other businesses in India are also eligible to obtain a PAN card. Given below are the PAN card eligibility criteria for Indian companies:

• Companies: Companies registered with the Registrar of Companies are eligible to obtain a PAN card in India. They will be required to provide an attested copy of the registration certificate as supporting documents.

• Partnership Firms/Limited Liability Partnerships: The business entity should be duly registered with the competent government authorities. Such entities must submit a copy of their registration certificate to process the application.

• Trusts: Any trusts registered with the relevant authorities can obtain a PAN card by submitting a copy of their registration certificate or trust deed.

• Local Authorities/Associations: Local authorities and registered associations can obtain a PAN card in India by submitting an attested copy of the Certificate of Registration or agreement.

• Artificial Juridical Person: Any such entities are eligible to register for a PAN card in India by submitting their identity proof and address proof in the form of registration certificates or government-issued documents.

• Companies/Entities that have no office in India: Artificial Juridical Authorities, Trusts, Firms, etc., that do not have a physical presence in India can apply for a PAN card in India by submitting their address and identification proof. This proof can be submitted as a registration certificate from their country of residence, as attested by the Indian Embassy or High Commission. If the applicant cannot provide the same, they must apply for a registration certificate in India with the relevant authorities.

PAN Card Eligibility for Foreign Citizens/Entities

Any foreign entities or citizens can apply for a PAN card by submitting Form 49AA and the necessary documents. Foreign individuals or entities who wish to carry out financial activities in the country must apply for a PAN card by submitting valid identification, date of birth, and address proof documents. They can submit the below documents in lieu of their application:

• Passport/PIO card/OCI card
• Taxpayer Identification Number
• Copy of Registration Certificate
• Copy of approval granted in India to set up and conduct business operations
• Certificate displaying their residential status in India
• Copy of Visa

PAN Card Eligibility for Foreign Companies

Foreign individuals, companies, business entities, and LLPs can also obtain a PAN card. Given below are the set of documents to be submitted along with a duly completed and signed Form 49AA:

• Copy of registration certificate issued outside the country as attested by the Indian Embassy, High Commission, or Apostille of the country of residence.
• Copy of Registration Certificate issued in India or copy of approval granted by the relevant government authorities to set up operations in the country.

Who Does Not Require a PAN Card in India?

The 10-digit alpha-numeric PAN number is used by the Income Tax Department of India to keep track of the financial activity of an individual or entity. Some financial transactions that can be tracked include ITR, income tax payments, TCS, TDS, correspondence, etc. However, not all entities are required to obtain a PAN card in India. The entities that do not require a PAN in India are as follows:

• Minors who are not required to pay income tax in the country are not required to obtain a PAN card. They can quote the PAN card of their parents or legal guardians.
• NRIs are not required to quote their PAN details for certain transactions.
• Individuals who do not have a taxable income in the country are not necessarily required to obtain a PAN card. If they wish to carry out transactions like investing in mutual funds, they can submit Form 60, which states that their income is below the tax bracket. 

Importance and Use of PAN Card

Individuals and entities in India need to quote their PAN details to carry out a number of transactions in the country. Given below are some of the transactions where it is imperative to quote PAN details or why it is important to have a PAN card:

• Filing Income Tax Returns
• Identification proof document
• To open a bank/deposit account
• To process credit card or loan applications
• The PAN needs to be quoted while conducting the sale of immovable property worth more than Rs. 5 lakhs
• Restaurant or dining payments over Rs. 25,000
• For bank account deposits of more than Rs. 50,000
• Purchase or sale of any vehicle that is not a two-wheeler
• While making investments worth more than Rs. 50,000

Conclusion

The PAN Card is an important document for every country’s tax-paying citizen. In addition to being a crucial identification document, the PAN has to be quoted while filing income tax returns and carrying out several transactions in the country. Knowing the PAN card eligibility, age, and documents required is essential to obtain a PAN card in the country. This article might greatly help you if you are a new applicant.