Permanent Account Number (PAN) is a unique identification number provided by the Income Tax Department. The Income Tax Act mentions that individuals falling under the following criteria are required to obtain PAN:
If a particular person’s income crosses the basic exemption limit for a financial year.
If the overall earnings or business exceeds the limit of five lakhs in the financial year.
If the person is required to get import and export code or GST registration.
If the person receives any amount after deducting withholding tax from the total earnings payable to another person.
If any financial transactions which are undertaken require submission of PAN card mandatorily.
PAN in India can be obtained voluntarily by any person, irrespective of citizenship, residency or age. Hence, foreigners, NRIs and minors are also allowed to obtain PAN.
PAN applications can be submitted at PAN facilitation centres that are available in every Indian city/town operating under UTITSL (UTI Infrastructure Technology and Services) and NSDL (National Securities Depository Limited). In addition, a person can also register and get his PAN card through the online mode. To obtain PAN, PAN application form 49A provided by income tax department must be submitted online or at a PAN facilitation centre.