PAN Card Eligibility

Any individuals or entities, including foreign individuals or organisations earning a taxable income in India, must possess a PAN Card. A Permanent Account Number is a 10-digit account number. You must apply for this document, but there are certain PAN Card eligibility criteria which you should know about beforehand. With the right information, you can make the process of applying for a PAN card quick and hassle-free

This article will provide all the crucial information about PAN Card eligibility criteria and benefits for different individuals and entities: 

Why is a PAN Card Important?

Here are various reasons why a PAN Card is important before going into PAN Card eligibility criteria: 

• A PAN card is mandatory for promptly submitting income tax returns to cater to tax behaviour.
• For some financial transactions that you would want to carry out require your identity, you can simply produce your PAN card.
• With a PAN card at your disposal, you are more likely to be approved for a credit card or bank loan as it demonstrates your higher credibility.
• Property transactions, especially those involving immovable property valued at Rs. 5 lakh or more, require the involvement of a PAN Card to ensure transparency.
• If you are making payments transcending Rs. 25,000 at restaurants or hotels, a PAN card is important to monitor such transactions. 
• When you wish to deposit substantial sums, typically Rs. 50,000 or more, into a bank account, a PAN Card is necessary to ensure these deposits are accounted for.
• In the context of buying or selling automobiles or other vehicles (excluding two-wheelers), a PAN Card is an essential document, as it contributes to accurate documentation. 
• If you want to make investments exceeding Rs. 50,000, a PAN Card is highly valuable, as it aids in tracking and reporting these investments.
• Once you surpass specified financial limits in your transactions, especially while purchasing jewellery, the PAN Card becomes essential to maintain transparency.

PAN Card Eligibility for Indian Citizens and Foreigners

Let's look at the PAN card eligibility criteria for individuals/organisations residing in India or outside India.

• PAN card eligibility for Indian citizens primarily involves applying through Form 49A, which necessitates specific criteria to be met. For individual applicants, being an Indian citizen is a fundamental requirement, with the need for proper identification, residential proof, and documentation verifying their date of birth.
• Hindu Undivided Families (HUFs), recognised as distinct legal entities, can also obtain PAN cards to facilitate financial transactions in the HUF's name. The head or Karta of the HUF can initiate the PAN card application on behalf of the family, providing evidence of identity, address, and date of birth. This process includes listing the names and addresses of all coparceners within the HUF, with Karta signing an affidavit encompassing this information.
• Minors, contrary to a common misconception about age limits, are eligible to apply for a PAN card, especially if they intend to serve as nominees for property or engage in investments under their name. In such cases, the minor's parents can complete Form 49A on the minor's behalf. While submitting the form, the parents must provide their proof, along with documentary evidence, validating the minor's date of birth. The minor's Aadhaar number is also needed in the application.
• Individuals facing mental retardation can also obtain a PAN card when necessary, with their representatives acting on their behalf during the application process.
• Limited Liability Partnerships (LLPs) seeking PAN cards need to furnish a copy of their Certificate of Registration issued by the Registrar of LLPs.
• Trusts pursuing PAN card issuance should provide a trust deed and a registration certificate number issued by the charity commissioner.
• Partnership firms aiming to acquire PAN cards must submit a copy of their registration certificate issued by the Registrar of Firms or their partnership deed.
• Companies seeking PAN cards can initiate the process online. But before applying, registration with the State Registrar of Companies to obtain a registration number is mandatory. A copy of the Certification of Registration, which the Registrar of Companies issued, should be submitted too. 
• Local authorities, such as municipal bodies and local governments, can apply for PAN cards by presenting a copy of their respective agreements.
• Persons' associations, when registered, are eligible to apply for PAN cards by providing a copy of their registration certificate.
• Artificial judicial persons can also apply for PAN cards by submitting a registration certificate or a government document confirming their identity and residence.
• PAN card eligibility for foreign citizens/entities follows Form 49AA, involving specific fundamental qualifying criteria. Foreign individuals engaging in financial activities within India must provide valid identification, address proof, and evidence of their date of birth to acquire a PAN card.

Required Documents

Let’s take a look at the required documents for PAN Card eligibility criteria for Indian citizens and entities along with Foreigners:

Indian Citizens and Entities

When it comes to establishing your identity proof while applying for a PAN card, there are several documents you can use, such as a PIO Card, OCI card, Passport, Attested Citizenship Identity Number or Taxpayer Identification Number from the Indian Embassy, High Commission, or Ministry of External Affairs. You can have this certified by an authorised officer of an Indian-scheduled bank branch established foreign, or you can have this certified by the nation's embassy where you are residing. 

For the address proof, you can provide documents such as OCI, TIN, CIN, or Passport by the Indian Embassy, Ministry of External Affairs, or High Commission. You can get this confirmed from the nation's embassy where you reside or through an authorised officer of an Indian scheduled bank branch established abroad or through a Residential certificate, your Bank Statement, and a Certificate of registration. 

Foreigners

With the PAN Form 49AA, you must submit the following papers, which are fully attested by the Indian Embassy, High Commission or Ministry of External Affairs, such as a registration certificate photocopy in which the entity is located. You can also have this certified by the nation's embassy where you reside. You must also submit a registration certificate photocopy received in India or a clearance from the Indian authorities to set up a unit office in India. 

Conclusion

A PAN card is an important document in almost every financial decision or need. You should know the PAN card eligibility criteria and important documents beforehand to not miss anything while applying. Complying with the rules and regulations of the country is a must, and you should be transparent with your income and not possess extra PAN cards.