Permanent Account Number (PAN) is a 10-digit unique alphanumeric number issued to any tax paying individual/organisation/trust in India. It is authorised by the Income Tax Department and is used by the department to link all transactions of the holder. It facilitates easy storage and retrieval of tax-related information of the entity. It is mandatory to have a PAN to pay tax to the income tax department.
Characteristics of PAN
PAN is issued for a fee of ₹110, in the form of a laminated card called a PAN card. The card also contains the name, DOB, signature, and a photograph of the individual. Newly issued PAN cards with the latest design comprise a hologram and scannable QR code. These latest features aim to eliminate duplicity and misuse and have been added to the security element of the card.
How to apply for a PAN?
One can enroll for PAN by applying through an approved PAN centre or online, through the official NSDL/UTIITSL website.
How to link PAN with Aadhaar?
It is necessary for a PAN card holder to inform the income tax department about the holder’s Aadhaar card if they possess or are eligible for one. As per Government regulations, it is mandatory to link PAN to Aadhaar otherwise PAN might become inoperative. There are two methods to link PAN to aadhaar card.
Through the e-filing tax portal
To link online, visit the income tax website (www.incometax.gov.in) and click on the ‘Link Aadhaar’ option that would appear on the left side of the screen under quick links. A form will appear on the screen, fill in all the details that will include Aadhaar number, PAN, and your name (without spelling errors as on Aadhaar).
After this, click on ‘link Aadhaar’ a captcha verification will have to be completed. Following this, if there is no discrepancy, a pop-up message will appear on the screen stating that the linking process has been completed.
Through SMS
One can link his/her Aadhaar and PAN through an SMS-based facility provided by the Income Tax Department. It can be done by sending an SMS to either 567678 or 56161 from your registered mobile number in the following format:
UIDPAN<SPACE><12 digit Aadhaar><Space><10 digit PAN>
PAN and Aadhaar are primarily one of the key documents for identification in India. PAN is accepted almost everywhere, especially for the purpose of banking. One must link PAN to aadhaar at the earliest, if not done already.