Obtaining a PAN may be optional or voluntary like a passport, driver’s license, Aadhaar, etc. However, its use is mandatory at required places, like PAN for high-value financial transactions, Driving licenses for motor driving, passports for foreign travel, and more.

  • For payment of direct taxes
  • To file income tax returns
  • To avoid deduction of tax at a higher rate than due
  • To enter into specific transactions such as:
  • (a) Sale or purchase of immovable property value exceeding specified limit (b) Sale or purchase of a vehicle other than a two-wheeler.
  • Any mutual fund purchase.


Having a Permanent Account Number (PAN) card in India offers several benefits:

  1. Income Tax Filing: PAN is essential for filing income tax returns in India. It is mandatory for individuals and entities, including foreigners, who engage in financial transactions that are taxable.
  2. Opening Bank Accounts: A PAN card is required to open a bank account in India. It is an essential document for both savings and current accounts, helping the government track financial transactions.
  3. Financial Transactions: PAN is needed for various financial transactions, such as buying or selling property, vehicles, and investments like mutual funds, stocks, and bonds exceeding specified limits.
  4. Credit and Debit Card Transactions: PAN is required for high-value transactions using credit or debit cards. This is to monitor and control large financial transactions, thereby helping prevent tax evasion and money laundering.
  5. Availing Government Subsidies and Schemes: Many government subsidies and schemes, including the LPG subsidy and various agricultural subsidies, require PAN details to ensure that the benefits are being availed by genuine beneficiaries.

Additionally, having a PAN card also acts as a valid proof of identity and facilitates smoother financial transactions. It’s important to note that while having a PAN card offers these benefits, it’s also essential to use it responsibly and ensure compliance with tax regulations.

WHO MUST APPLY FOR PAN- Permanent Account Number?

  1. Anybody who earns a taxable income in India, including foreign nationals who pay taxes here.
  2. Anybody who runs a business (be it retail, services or consultancy) that had total sales, turnover or gross receipt exceeding a specified limit in the previous financial year. (From December 5, 2018. The new rule has made it mandatory for all businesses with a net turnover/ gross income of up to Rs 2.5 lakh per year to have a PAN).

The most common word that affects the lives of professionals, corporations, and other people is PAN, in this advanced era still, people have questions or myths that we don’t get a salary from anywhere so we don’t require a PAN Card. In this write-up, we will have an insight into the concept of PAN Card. The primary objective of PAN is to use a universal identification key to track financial transactions that might have a taxable component to prevent tax evasion. The PAN number remains unaffected by the change of address throughout India.

PAN, or permanent account number, is a unique 10-digit alphanumeric identity allotted to each taxpayer by the Income Tax Department under the supervision of the Central Board of Direct Taxes. It also serves as an identity proof. PAN Card is mandatory for financial transactions such as receiving taxable salary or professional fees, sale or purchase of assets above specified limits, buy mutual funds and more.


Procedure to Apply for Pan Card Online

Here is a Procedure to Apply for Pan Card Online

  1. Visit the Official Website: Go to the official website of the Income Tax Department of India for PAN services: https://www.incometaxindia.gov.in.
  2. Select the Appropriate Form:
    • For new PAN applications by Indian citizens/Indian companies/entities/foreign citizens, select Form 49A.
    • For new PAN applications by foreign citizens/entities, select Form 49AA.
  3. Fill in the Form:
    • Fill in all the required details in the form. You’ll need to provide personal information, contact details, and other relevant information.
    • The form allows you to select the type of PAN card you want. For most individuals, it will be “Individual.”
  4. Submit the Form:
    • After filling in the form, click on the “Submit” button.
  5. Payment:
    • You’ll be directed to a payment gateway. As of my last update, the processing fee for a PAN application was Rs. 93 for Indian addresses and Rs. 864 for foreign addresses (plus GST). The fees might have changed, so verify the current rates.
  6. Authentication:
    • Once the payment is made, you’ll need to go through an authentication process. This may involve an OTP (One Time Password) sent to your registered mobile number or email.
  7. Acknowledgment:
    • After successful payment and authentication, you’ll receive an acknowledgment with a 15-digit acknowledgment number. This will serve as a reference for future communication regarding your application.
  8. Submit Supporting Documents:
    • Print the acknowledgment and affix two recent passport-sized photographs. Sign or provide your thumb impression (as specified in the form) in the space provided.
    • For identity and address proof, you may need to submit documents like Aadhaar, passport, voter ID, utility bills, etc.
  9. Send the Documents:
    • Put the acknowledgment with supporting documents in an envelope and send it to the address mentioned in the acknowledgment.
  10. Processing:
    • The processing time for a PAN card is typically around 15-20 working days. However, this may vary.
  11. Receive PAN Card:
    • Once processed, the PAN card will be sent to the address mentioned in the application.


  1. Use ‘Form 49A’ or ‘Form 49AA’ as applicable to you. Find more details at incometaxindia.gov.in.
  2. You can find the location of PAN card offices in any city from the websites of the Income Tax Department or National Securities Depository Limited (NSDL)or UTI Infrastructure Technology (UTIITL).
  3. You will need copies of proof of Identity and address.
  4. You can also apply online through websites of the I-T Department (Income Tax) or National Securities Depository Limited NSDL or UTI Infrastructure Technology (UTIITL).
Individual Citizens of India.Individual who are not Indian Citizens
HUF-Hindu Undivided families.
Companies Registered in India.Companies Registered outside India.
Associations Registered in India.Firms Formed or Registered outside India.
Firms’, Including LLP’s Formed or Registered in India.LLP’s Formed or Registered outside India.
Local Authorities


Obtaining a loan without a PAN card in India can be challenging, as the PAN card is a crucial document for financial transactions and is often required by lenders for identity and taxation purposes. However, there are a few exceptions and alternatives to consider:

  1. Small Loans from Informal Sources: Some local moneylenders or informal lending groups may not strictly require a PAN card for small loans. However, these sources often charge high interest rates and may not be regulated by official authorities.
  2. Pradhan Mantri Mudra Yojana (PMMY): This is a government scheme that provides loans to micro and small enterprises. While having a PAN card is beneficial, it may not be a strict requirement for all lenders under this scheme.
  3. Cooperative Banks and Credit Societies: Some cooperative banks and credit societies might have more relaxed documentation requirements compared to larger commercial banks. They may have their own policies regarding PAN card submission.
  4. Gold Loans: Some lenders, particularly non-banking financial companies (NBFCs) that specialize in gold loans, may have less stringent documentation requirements. They may have alternative ways of verifying your identity.
  5. Personal Loans from Family or Friends: If possible, you could consider seeking financial assistance from family members or friends who may not require the same level of documentation as formal lending institutions.
  6. Microfinance Institutions: Certain microfinance institutions focus on providing small loans to individuals for income-generating activities. They might have more lenient documentation requirements.

It’s important to approach alternative lending sources with caution, as informal lending can sometimes lead to unregulated or exploitative practices.


For illustration -A typical PAN is AFZPK7190M. The combination in which the alphabet and numbers are arranged is explained further.

  • First three characters i.e. “AFZ” in the above PAN are alphabetic series running from AAA to ZZZ.
  • Fourth character of PAN i.e. “P” in the above PAN represents the status of the PAN holder. “P” stands for Individual, “F” stands for Firm, “C” stands for Company, “H” stands for HUF, “A” stands for AOP, “T” stands for TRUST etc.
  • Fifth character i.e. “K” in the above PAN represents first character of the PAN holder’s last name/surname.
  • Next four characters i.e. “7190” in the above PAN are sequential number running from 0001 to 9999.
  • Last character i.e. “M” in the above PAN is an alphabetic check digit.

A pan card is required for a lot of purposes thus making it an extremely valuable and indispensable part of most people lives. The likeliness of PAN identity theft has grown with the growing importance of PAN. Merely safeguarding the physical copy cannot prevent misuse. Information can be misused very easily for benami property transactions or purchase of tickets of high value, as a majority of transactions demand simply quoting of the PAN or a photocopy of the PAN Card. Thus, a copy of your PAN card or its number could be quoted in transactions that you are not even a part.

Especially for Companies incorporated/registered these days are in a very comfort zone as PAN and TAN are allotted to them on an immediate basis every company registered in India is mandatory to have a PAN Number, by simplified approach companies get their PAN printed of Certificate of Incorporation of a Company, it also helps to open bank account very fast in case of Company.

Company Registration has got one feather by this instant TAN and PAN allotment. In the present scenario, you don’t need to separately apply for PAN-TAN you will get this instantly along with your certificate of Incorporation.

Can We Initiate without PAN card bank account open online in India?

The PAN card serves as an essential identification document for financial transactions and helps the bank verify your identity.

However, there are exceptions and alternatives to this rule without PAN card bank account open online:

  1. Small Accounts: Some banks offer a “small account” option for individuals who do not have a PAN card. These accounts have limitations on the total credits, withdrawals, and balance, and are generally meant for low-income individuals.
  2. Jan Dhan Accounts: The Pradhan Mantri Jan Dhan Yojana (PMJDY) is a government initiative that aims to provide financial inclusion. These accounts can be opened with minimal documentation, and a PAN card is not mandatory.
  3. Alternate Identification: In lieu of a PAN card, banks may accept other identification documents like Aadhaar, voter ID, passport, etc. along with a Form 60/61 declaration in cases where the customer does not have a PAN.
  4. Non-Resident Indians (NRIs) and Foreign Nationals: Different rules may apply for non-resident Indians and foreign nationals looking to open accounts in India. They might need to adhere to specific guidelines set by the Reserve Bank of India (RBI).
  5. Minor Accounts: Minors can open bank accounts with the consent of their guardians. In such cases, the guardian’s PAN card might suffice for the documentation.
  6. Accounts with Basic Features: Some banks offer accounts with basic features that may not require a PAN card. These are often targeted at individuals who may not have regular income or substantial financial assets.

By csannusharma

CS Annu Sharma is a qualified and experienced professional in the field of Company Secretarial and Legal activities. With an impressive academic background and relevant certifications, she has demonstrated exceptional expertise and dedication in her career. Education: Qualified Company Secretary (CS) from the Institute of Company Secretaries of India (ICSI). Graduate in Law from Indraparasth Law College, enabling a strong legal foundation in her professional journey. Graduate in Commerce from Delhi University, providing her with a comprehensive understanding of financial and business concepts. Certifications: Certified CSR Professional from the Institute of Company Secretaries of India (ICSI), showcasing her commitment to corporate social responsibility and ethical business practices. Work Experience: She possesses an extensive and diversified work experience of more than 7 years, focusing on Secretarial and Legal activities. Throughout her career, she has consistently showcased her ability to handle complex corporate governance matters and legal compliance with utmost efficiency and precision. Current Position: Currently, Mrs. Annu holds a prominent position in an NSE Listed Entity, namely Globe International Carriers Limited, based in Jaipur. As a key member of the organization, she plays a vital role in ensuring compliance with regulatory requirements, advising the management on corporate governance best practices, and safeguarding the company's interests. Professional Attributes: Thorough knowledge of corporate laws, regulations, and guidelines in India, enabling her to provide strategic insights and support in decision-making processes. Expertise in handling secretarial matters, including board meetings, annual general meetings, and other statutory compliances. Proficiency in drafting legal documents, contracts, and agreements, ensuring accuracy and adherence to legal requirements. Strong understanding of corporate social responsibility and its impact on sustainable business practices. Excellent communication and interpersonal skills, enabling effective collaboration with various stakeholders, both internal and external. Personal Traits: Mrs. Annu Khandelwal is known for her dedication, integrity, and commitment to maintaining the highest ethical standards in her professional conduct. Her meticulous approach to work and attention to detail make her an invaluable asset to any organization she is associated with. Conclusion: Cs Annu 's profile exemplifies a highly qualified and accomplished Company Secretary, well-versed in legal matters and corporate governance. With her wealth of experience and commitment to excellence, she continues to contribute significantly to the success and growth of the organizations she serves.