So many people are concerned that they are neither unable to file their income tax returns (ITRs) nor file their nomination details due to lack of a PAN Card. Possessing a PAN Card is crucial because this ten-character alphanumeric identifier, issued by the Income Tax Department of India, allows individuals and entities to report income tax and facilitates the monitoring of all financial dealings associated with them.
Having a Permanent Account Number (PAN) helps in a range of financial transactions, encompassing:
Filing ITRs: PAN is a requisite for filing income tax returns and conducting tax-related activities.
Opening a bank account: When opening a bank account, a PAN is typically mandatory for identity and taxation purposes.
Obtaining a credit or debit card: PAN is essential for acquiring credit or debit cards, as it aids in tracking financial transactions.
Investing in mutual funds or stocks: PAN is a prerequisite for investing in mutual funds or stocks, ensuring transparency and compliance with tax regulations.
Purchasing real estate: PAN is often mandated for property transactions, including buying real estate.
Engaging in high-value transactions: Significant transactions like acquiring a car or jewellery frequently necessitate PAN documentation for regulatory and taxation purposes.
Applying for government services: PAN is also essential for several government services, such as passport applications and driver's license issuance, to verify identity and financial history.
In summary, PAN plays a vital role in various financial and government-related activities, facilitating transparency, compliance, and identification in a wide array of transactions and services.
The cumbersome process of manually submitting required documents to obtain a PAN Card has led the government to implement a more convenient online method. This innovation has given rise to the introduction of the e-PAN card facility, also known as instant PAN, which is allocated to applicants with a valid Aadhaar number.
Applying for an e-PAN card?
The government's introduction of the e-PAN card facility has been warmly received, significantly simplifying the process of obtaining a PAN card for taxpayers. The e-PAN card is a digitally signed PAN card issued in electronic format based on e-KYC data from Aadhaar. It carries the same validity as a physical PAN card and serves all PAN-related purposes.
To apply for an e-PAN card, you must possess a valid Aadhaar number and have a registered mobile number linked to your Aadhaar. The application process is entirely online and can be completed within minutes. Upon submitting your application, you'll promptly receive an e-PAN card in PDF format. You can choose to download and save it on your computer or mobile device or opt to print a physical copy.
Here are some key benefits associated with using an e-PAN card:
Ease of acquisition: Obtaining an e-PAN card is both straightforward and cost-free.
Legal recognition: It holds legal validity and is recognized as an official document.
Convenient portability: The e-PAN card is easy to carry and store, offering enhanced convenience.
Enhanced security: It is less susceptible to fraud and damage compared to its physical counterpart.
Environmentally friendly: Its digital nature contributes to environmental sustainability.
The introduction of the e-PAN card has streamlined the PAN card application process, offering numerous advantages to taxpayers in terms of accessibility, security, and environmental responsibility.
How to get an e-PAN instantly?
Given how the Ministry of Finance is bent on introducing new steps and rejigging the old ones to ease PAN availability in India, opting for an e-PAN Card is now a matter of a few simple steps. These steps include:
Step 1: Visit the Income Tax Department's e-filing portal
Step 2: Click on “Instant e-PAN”
Step 3: Select “Get New e-PAN”
Step 4: Enter your 12-digit Aadhaar number and click “Continue”
Step 5: Review the consent terms and check the box to agree to proceed further. Then, click “Continue”.
Step 6: Enter the 6-digit OTP received on the mobile number linked with your Aadhaar, and click “Continue”
Step 7: Choose the checkbox to validate the Aadhaar details with UIDAI and click “Continue”
Step 8: Select the “I Accept” checkbox and click “Continue”.
After submitting all the required information, you will receive an Acknowledgement Number. You can then download and save your e-PAN card in PDF format.