Any individual/company who owns or runs a business in the country is required to provide PAN details to the Government. The 10-digit Unique Identification Number is used to trace the financial transactions of the PAN owner. It has been legally prescribed by the government to quote the PAN details in case of financial transactions that include acquisitions, liquidation or transfer of assets. Minors, foreigners, as well as students can apply for PAN card.
The eligibility criteria for owning a PAN card varies depending on the nature of the entity. For example, the criteria for applying for PAN for individuals is different from the criteria for applying for PAN for firms/companies.The basic criteria for applying for PAN for different sections of the society are discussed below:
For individuals to be eligible to apply for PAN, they need to have valid/ verified residence, identification and date of birth proof. The documents that are required for applying for PAN for an individual are- Voter's ID, Driver's License, Utility bills etc
Hindu Undivided Families
Hindu Undivided Families are the units of people who belong to the same family and are involved in the same business. For a HUF to apply for PAN card, they need to select the karta/head. The karta is required to apply for PAN card for all the members of the family. He/ She needs to mention the father's name to apply for PAN card.
Minors cannot directly apply for PAN. Their parents/guardians can apply for minors on behalf of them. The documents required for applying for PAN for a minor is the parent/guardian's ID and address proof or the minor's matriculation certificate, if he/she has passed 10th standard.
Indian citizens residing abroad
If the individual applying for PAN card is an NRI, he/she can apply for PAN in India by submitting a bank account statement from any bank in India where they've performed financial transactions.
Mentally challenged individuals
A mentally challenged person can choose a representative to apply for his/her PAN card. The representative will have to submit their identification and residence proof along with the ID and address proof of the applicant.
Companies must have registered the company with the Registrar of Company, and provide a Certification of Registration as a proof while applying for PAN.
Partnership Firms/Limited Liability Partnerships
The Partnership Firms or Limited Liabilities Partnerships also need to be registered with their respective government authorities, and while applying for PAN, they need to provide the Certificate of Registration for the same.
Trust could be eligible for applying for PAN on submitting the proof of registration in the PAN center or by providing the Trust Deeds
Local authorities and associations can apply for PAN only on the submission of Certificate of Registration incurred from the respective authorities
Artificial Juridical Person
An artificial Juridical entity can apply for PAN by providing identification and residence proof or by submitting the registration certificate issued by the Government authorities.
Entities that don't have an office in India
For the entities that do not have an office in India, in order to apply for PAN, they need to provide ID and address proof. They can submit the registration certificate issued by the authorities of the country that they are located in. Furthermore, the document needs to be attested by the Indian Consulate of that country
Organisations that are keen to set up their business in India, need to apply for PAN as well. In order to apply for PAN in India, the foreigners need to fill up Form 49AA. The basic requirements for foreigners to apply for PAN in India are:
Individuals belonging to a foreign country can apply for PAN by providing the relevant ID and address proof.
Firms, Trusts and other companies can apply for PAN only if they have a certificate of registration from the respective authority in their country. The Certificate of registration is required to be attested by the Indian Embassy or Consulate situated in the country.