In case you don’t have a PAN card, you can get instant e-PAN from the income tax department.
E-PAN card is a digitally assigned PAN card that is issued in an electronic format by the income tax department.
This service started on 29th June and is only available for a limited period of time-based on first come and first serve basis. You don’t need to pay for this service and for the pan card application you only need to have a valid aadhar number.
Kuldip Kumar who is partner and leader, personal tax, PwC India said that “benefit for the taxpayer is that they will get PAN card on the immediate basis and free of cost.”
When you go for pan card apply, it normally takes 10 to 15 days to get it that too by filling the form and paying a fee of 110. Additionally, the taxpayer has to submit all the supporting documents that would be a proof for his identity and address to NSDL, which is a head office located in Pune if they don’t go for digital signature verification.
Who can get an E-PAN?
An applicant needs to apply for an E-PAN through online website, for now, this facility is only available for individuals.
This facility is not available for minors, firms, trusts, companies and Hindu Undivided families (HUF). Additionally, this facility is also not available for people who come under section 160 of the income tax act for e.g. non – resident Indians.
Why do you need a PAN card?
PAN card is very essential because it allows income tax department to identify all the transactions of a tax assesse, transactions such as tax payment, returns and some specified transactions require PAN card and there it has to be quoted.
Under the Indian Tax Laws rule 114B there are several financial transactions where it is mandatory to quote PAN. These mandatory fields include any sale or purchase of immovable property that exceeds the denomination of 10 lakhs and securities that are exceeding 1 lakh, on purchase or sale of a motor vehicle or to open a bank or a credit card or demat account, you also need a PAN card to buy mutual funds or debentures, RBI bonds, bonds above 50,000 and many other places.
Nowadays, if you want to open a bank account in a bank, some of them have made it mandatory to have PAN card. Whereas, an individual needs a PAN card to file tax returns if the income they have earned during a year is taxable.
How can you apply for PAN Card?
To apply for an E-PAN you need to have an Aadhar with the updated mobile number. An OTP will be sent to the registered mobile number with the Aadhar, this will be done to conduct an E-KYC.
Benefit of applying for E-PAN is that applicants don’t need to provide any supporting document along with it to prove the date of birth, address and other things. It will be generated by using the details as per the information available in the Aadhar database.
However, there will be a prescribed format in which you need to upload an image of your signature and a recent photograph. Before, you apply for E-PAN you need to check all the details on the aadhar and update them if they need it because your application can get rejected in case any of the data gets mismatched.
If you an E-PAN, no physical pan card will be issued to you. Once it is allotted you can download it from the official website of income tax department. This was all the information about E-PAN Card.