The PAN card refers to the Permanent Account Number. The PAN card acts as an “identifier” for the Income Tax department. It is issued by the Income Tax department to link all the transaction of a person with the department. The PAN card comprises of 10 alpha numeric number which is used by the Income Tax department to widen the tax base by facilitating the tax payers with easy information on loans, tax payment, investments etc.
The first three characters comprise of alphabetic series ranging from AAA to ZZZ. The fourth character represents the card holder’s status. For instance “P” stands for individual, ”F” stands for the firm, ”C” stands for a company, ”T” stands for Trust etc.
Importance of PAN Cards
It is mandatory for all individual who is eligible for tax payment to hold a PAN card. Besides being a mandatory document while filing Income Tax returns, a PAN card is also important in the following events:
- Any sale or purchase of property which above 5 lakhs
- Sale and purchase of motor vehicle (except two wheelers)
- A fixed deposit which includes an amount of more than fifty thousand rupees in bank or post office.
- A contract which involves the sale and purchase of security of more than 1 lakh rupees.
- The PAN card is also a mandatory KYC document while opening a bank account
- Further, a person is also required to show the PAN card in case of establishment of phone lines.
- Payment of bills which exceeds Rs 25000
- Cash deposits which are either fifty thousand rupees or more in a single day they require account holder to present his or her PAN card.
- The PAN is also necessary for any kind of payments that are to made while traveling abroad.
Steps to Follow While Making Pan Card Correction
The corrections in the Pan card can be done both by the online or the offline method. Recently the government has made it mandatory for everyone to link PAN card with the Aadhaar card. Thus, any mismatch while cross-checking the information at the time of linking the two cards may create a lot of problems for the account holder. The process by which corrections can be made using both the online as well as the offline method is mentioned below:
How to make PAN Card correction online
- Visit the official website of the Income tax department :incometaxindiaefiling.gov.in
- Click on “Application type” and then select “PAN correction” from the drop down menu.
- The applicant is required to fill in his or her details like name, date of birth, email id, mobile number, nationality and the captcha code and then click on “submit”
- After submitting the information a token number will be generated which will also be required for future reference. It will be displayed both on the screen and also will be sent to the registered email id.
- After this provide the PAN number that needs to be corrected in the appropriate box and then provide your personal details and then click on “next”. The details will be updated in the income tax database.
- After this, a page will appear where the member is required to upload documents like address proof, proof of identity and age.
- If the member has mentioned his or her Aadhaar number then the scanned copy of the Aadhaar card along with supporting documents are mandatory. Likewise, if the Aadhaar is selected as a proof of identity or address proof then the Aadhaar number must be provided.
- After this, the entire application will appear on the screen to check all the details provided and changes must be before finally submitting it.
- After submitting the details proceed for payments. The payment can be done via three channels that are via demand draft, debit card or credit card.Within India, a payment of Rs 110 is charged and if the payment is to do outside India than Rs 1020 is charged.
- After successful payment, an acknowledgment slip will be generated and displayed on the screen. The user should take out a printed copy of this slip.
- In case of an individual, the acknowledgment slip must be attached with two photographs and send to the NDSL E-gov. The slip must be signed in such a manner that the signature touches both the slip as well as the photograph.
- In case of a firm or a corporate, the Acknowledgement slip must be signed by the authorized officials of that organization.
- All the check boxes provided in the slip must be marked correctly and send to the NSDL office
How to make PAN Card correction Offline
The offline method involves the following steps
- The Pan correction form must be collected and submitted after filling all the details to the nearest NSDL center
- Further, a letter must also be filed with the Jurisdictional Assessing officer.