SUMMER TRAINING REPORT

ON
‘PAN & TAN CARD’

Submitted To: Submitted By:

Prof. Randeep Kaur Raja Kumar

PG Department of Commerce BAF 2nd (3rd semester)
Mata Gujri College 245193
Fatehgarh Sahib Session 2024-2025
 DECLARATION

I, Raja Kumar, certify that this project is my own work, based on my

personal study and research and that I have acknowledged all material
and sources used in this preparation, whether they be books, articles,
Reports, lecture notes and any other kind of documents, electronic or
Personal communication. I also certify that this project has not
previously been submitted for assessment in any academic capacity,
and that I have not copied in part or whole or otherwise plagiarised
that work of other person. I confirm that I have identified and declared
all possible conflicts that I may.
 ACKNOWLEDGMENT

I would like to express my sincere gratitude to all those who helped me

complete this project successfully.

First and foremost, I would like to thank my class Professor, Randeep Kaur,
for their constant support, valuable guidance and encouragement throughout
the process.

I would also like to extend my thanks to our college Principal for providing
all the necessary facilities required for this project.

Finally, I would like to thank my family who motivated me and boosted my

morale when I was stressed.

Raja Kumar
 CONTENT

S. No Topics

1. Introduction of PAN Card

2. Format of PAN Card

3. PAN Card numbering logic

4. PAN Card for Individuals

5. PAN Card for non-individuals

6. Who needs to get a PAN Card in India

7. Benefits of PAN Card

8. Why is PAN Card important

PAN Card fees in India

9.
PAN Card fees for citizens outside the country

10. PAN Card forms

11. How to apply PAN Card online

12. How to apply PAN Card offline

13. How to update a PAN Card on UTIITSL portal

14. How to check PAN Card change Status

15. TAN Card

16. Who needs TAN Card

17. What are the benefits of TAN

18. Types of TAN Application

19. How to apply TAN Card online

20. How to apply TAN Card offline

21. Conclusion
 INTRODUCTION OF PAN CARD

The Permanent Account Number (PAN) card was introduced in India on

July 1, 1975, by the Income Tax Department. It is a 10-digit
alphanumeric identifier issued to individuals, companies, and other
entities for tax purposes.
The PAN serves as a unique identification number and is mandatory for
transactions above a certain limit, filing of tax returns, and various other
financial transactions.

Why was Pan introduced by the government of India :

The Permanent Account Number (PAN) was introduced by the
government of India as a means of maintaining a central database of all
financial transactions conducted by individuals and organizations in the
country. The PAN
Serves as a unique identifier for taxpayers and enables the government
to track and monitor financial transactions, thereby preventing tax
evasion and fraud.
By having a PAN card, the government can track an individual’s or
organization’s financial transactions and ensure that taxes are paid
accurately and on time. The PAN system also helps in reducing the
likelihood of multiple PAN cards being issued to the same individual or
organization, thereby increasing the efficiency of tax administration and
compliance.
 FORMAT OF PAN CARD

PAN is an alphanumeric identifier that is made up of 10 characters It is

in the sequence of five alphabets, four numbers and then one alphabet. A
PAN card is issued by the Income Tax Department of India. It is a plastic
card and look like debit card.
It contains the following information –
• “Income Tax Department” and “Govt. of India” are on top, with
the lion capital in between.
• The enhanced QR code contains the signature and photograph of
the cardholder.
• The 10-digit alphanumeric PAN number.
• A Government of India hologram.
• Pan holder’s name.
• Pan holder’s father’s name.
• Pan holder’s date of birth.
• Pan holder’s signature.
 PAN CARD NUMBERING LOGIC

1. The first three alphabets represent the alphabetic series ranging

from AAA to ZZZ.
2. The fourth alphabet signifies the status of the PAN holder. The
different statuses a cardholder can have are –

• P – Individual
• C – Company
• H – Hindu undivided family
• A – Association of persons
• B – Body of individuals
• G – Government agency
• J – Artificial juridical person
• L – Local authority
• F – Firm or limited liability partnership
• T – Trust

3. The fifth alphabet represents the first character of the PAN holder’s
last name. In the case of non-individual entities, it represents the
first character of the PAN holder’s name.
4. The sixth to ninth characters are four numbers within the sequence
of 0001 to 9999.
5. The last character in the series is an alphabet.
 PAN CARD FOR INDIVIDUALS

Applicants who are resident Indians, NRIs or foreigners can apply for
this type of PAN card. PAN cards for individuals have the person’s
name, photograph, father’s/mother’s name, signature, date of birth, QR
code, date of issue and PAN.

Any resident Indian, including students and minors, can apply for a PAN
card by submitting the 49A form. Non-Resident Indians and Overseas
Citizens of India (OCI) can apply for a PAN card by filling out form
49AA.

To get a PAN card for individuals, you will have to furnish valid proofs
of identity, address and date of birth. Minors and students can also apply
for a PAN card, especially when they are nominated for an
investment/property.
 PAN CARD FOR NON-INDIVIDUALS

Entities like companies, firms and LLPs cannot register their business in
India without a PAN card. In addition, companies registered outside the
country will need a PAN card if they are liable to pay taxes here.

PAN cards for businesses do not have any photographs, person’s name,
date of birth, father’s/mother’s name or signature. They have the
organization’s name in place of the cardholder’s name and the entity’s
incorporation date instead of DOB.

Indian companies, partnership firms, NGOs, local bodies, trusts etc.,

need to file form 49A while foreign entities need to file the form 49AA.
 WHO NEEDS TO GET A PAN CARD IN INDIA

Here is a list of entities that must have a PAN card under Section 139A
of the Income Tax Act.

• Any individual whose overall annual income is more than the

amount exempted from tax.

• A business organization, irrespective of whether it is a sole

proprietorship, LLP, partnership firm, etc.

• Anyone who intends to carry out financial transactions that require

them to quote PAN.

• Any person whose business/profession has a turnover of more than

Rs.5 lakh annually.

• A charitable trust liable to pay returns.

• Non-individuals whose total value of financial transactions in a

fiscal year exceeds Rs.2.5 lakhs.

• Anyone who wants to open an account with a bank or NBFC (other

than a basic savings account or time deposit)
 BENEFITS OF PAN CARD
• IT Returns Filing: All individuals and entities who are eligible for
Income tax are expected to file their IT returns. A PAN card is
necessary for filing of IT returns, and is the primary reason
individuals, as well as other entities, apply for one.

• Identity Proof: PAN card serves a valid identity proof. Other than
voter card, Aadhaar card, PAN card is also accepted by all financial
institutions and other organizations as an identity proof.

• Tax Deduction: One of the important reasons to get a PAN card is

for taxation. If the entity or person has not linked the PAN number
with his bank account, and the annual interest earnings on savings
deposits are more than Rs.10,000/- then the bank would deduct
30% TDS instead of 10%.

• Claiming Income Tax Refund: Many times, the TDS deducted

from a taxpayer’s income is more than the actual tax that he is
supposed to pay. In order to claim excess tax paid, taxpayer has to
have a PAN linked to his bank account.

• Starting A Business: In order to start a business, a company or

any other entity mandatorily needs to have a PAN registered in the
name of its entity. Tax Registration Number (TRN) is needed for a
business which is obtained only if the entity has a PAN.
 WHY IS PAN CARD IMPORTANT

Here are a few important reasons why you should get a PAN card:

• Banking: A PAN card is required to open a bank account and other

banking-associated financial operations. It is now required in order
to combat fraud and money laundering. Cash deposits of more than
Rs.50,000 daily necessitate submitting PAN card information.
Fixed deposits over Rs.50,000 also necessitate submitting PAN
card information.

• Debit/Credit Card Applications: PAN information is also

required for debit/credit card applications. Applications that are
rejected due to a lack of PAN card information or other factors
may negatively influence your credit score.

• Loan Applications: PAN card information is required for all types

of loan applications.

• Buying/Selling Property: If the value of the immovable property

exceeds Rs.5 lakhs, the buyer and seller’s PAN card details are
required by law for any type of property transaction, sale, or
purchase. In the case of joint ownership, the PAN card numbers of
all owners are required.
• Purchasing Jewellery: PAN data must be submitted when
purchasing any jewelry or bullion worth more than Rs.5 lakhs.

• Payment Wallets: Digital payment wallets also require PAN card

information if monthly transactions surpass Rs.20,000.

• Purchase Vehicles: Except for two-wheelers, PAN card

information is required to sell or purchase all vehicles.

• Mutual Funds: PAN card information is also required for bonds,

debentures, or mutual funds investments.

• Insurance Premium: If your insurance premiums surpass Rs.

50,000 in a fiscal year, you must additionally provide PAN card
information.

• Foreign Currency Exchange: PAN card information is also

necessary when exchanging local currency for foreign currency.
 PAN CARD FEES IN INDIA

When applying online, applicants residing within the country need to

pay a fee of Rs.101, which includes a processing fee of Rs.86 plus
Goods & Services tax charged at 18.00%. This PAN card fee applies to
getting a physical PAN card delivered to the person’s address.

But in the case of acquiring e-PAN cards, the fees is Rs.66. It will be
sent to the e-mail ID of the person mentioned when filling in the
required details.

PAN CARD FEES FOR CITIZENS OUTSIDE

THE COUNTRY

On the online application of a new PAN card, the government charges a

fee of Rs.1011.00 [ (Application fee + Dispatch Charges Rs.857) +
18.00% Goods & Service Tax] to entities with a communication address
outside India.

But in the case of acquiring an e-PAN card, the fee is Rs.66, the same as
for an Indian resident. It will be sent to the e-mail ID of the person
mentioned when filling in the required details.
 PAN CARD FORMS

Form 49A for Indian Residents

• Use Form 49A for PAN allotment.

• Provide your signature within the prescribed box.
• If using a thumb impression instead of a signature, it should be
attested by a Magistrate, Notary Public, or Gazette Officer with
an official seal and stamp.
• Mention your telephone number and email ID in the application
form.
• Fill in your complete postal address along with a landmark and
correct pin code.
• Use block letters in English and preferably write with black ink.
• Attach a recent colour Photograph (dimensions: 3.5 cm x 2.5 cm).
• Provide ID proof, address proof, and date of birth proof with the
same name as written in the application.

Form 49AA for Foreign Residents

• Foreign residents applying for PAN should use Form 49AA.

• Follow similar guidelines for filling out the form as Form 49A.
• Ensure accurate details, including Area code (AO) code.
Remember that PAN cards are crucial for various financial transactions,
tax filing, and credit facilities.
 HOW TO APPLY PAN CARD ONLINE

PAN Card application apply online on one of the following websites:

• Protean e-Gov Technologies Limited (formerly NSDL)
• UTIITSL

Step 1: Visit the UTIITSL website.

Step 2: Click the ‘Click to Apply’ under the ‘PAN Card for Indian
Citizen/ NRI’ tab or PAN Card for Foreign Citizen’ tab.
Step 3: Select the ‘Apply for New PAN Card (Form 49A)’ tab.

Step 4: Select the mode of submission of documents, status of applicant,

the PAN card mode and click the ‘Submit’ button.
Step 5: You will receive a reference number. Click ‘OK’.

Step 6: Enter the required details on the form, such as personal details,
document details, contact and parent details, address details and other
details. Upload the required documents and submit the form.

Step 7: Make the payment of the application fee. On successful

payment, an acknowledgment will be displayed and sent to your email
ID.
 HOW TO APPLY PAN CARD OFFLINE

Step 1: Download the ‘Form 49A’ or ‘Form 49AA’ from the Protean e-
Government website. You can also obtain the PAN card application
form from the nearest PAN center.

Step 2: Then, fill in the details required in the PAN application form
accurately and completely.

Step 3: Include copies of all the documents required, as well as two

recent passport size photographs and attach your signature.

Step 4: Pay the fees for PAN card application.

Step 5: You will get the acknowledgement number from which you can
track the status of your PAN card application status.

Step 6: Once you have affixed all the necessary documents and photos,
send them all along with the form to the following address:

Income Tax PAN Services Unit, NSDL e-Governance Infrastructure

th
Limited, 5 floor, Mantri Sterling, Plot No. 341, Survey No. 997/8,
Model Colony, Near Deep Bungalow Chowk, Pune – 411016
 HOW TO UPDATE A PAN CARD ON UTIITSL
PORTAL
Step 1: Visit the UTIITSL website.
Step 2: Click the ‘Click to Apply’ under the ‘Change/Correction in PAN

Card’ tab.
Step 3: Click the ‘Apply for Change/Correction in PAN card details’ tab.
Step 4: Select the mode of submission of documents, enter your PAN
number, select the PAN card mode and click the ‘Submit’ button.

Step 5: Once the request is registered, you will receive a reference

number. Click on ‘OK’.
Step 6: Remember to tick the fields that requires to be updated or
corrected. Enter the updated or correct personal details. Click on ‘Next
Step’ once the details are entered.
Step 7: Address will be updated as per your Aadhaar card. Enter your
contact details and click on ‘Next Step’.

Step 8: Enter the PAN number and verification and click the ‘Next Step’
button.
Step 9: Upload the documents and click the ‘Submit’ button.

Step 10: Verify the details on the form and click on the ‘Make Payment’
button.
Step 11: Select the mode of online payment and make the payment. A
success message will be displayed once the payment is successfully
made. Take a print out of the form.

It generally takes around 15 days for PAN correction. You will receive a
text message on your registered mobile number when your PAN card is
dispatched via post.
 HOW TO CHECK PAN CARD CHANGE
STATUS

You can check the status of your PAN card correction application online
by following the below process:

• Go to the NSDL PAN website or the UTIITSL website.

• Click the ‘Know Status of PAN application’ or ‘Track PAN card’

option.

• Enter the ‘Acknowledgement Number’ and Captcha code and click

‘Submit’.

The status of the PAN card change application will be displayed on the
screen.
 TAN CARD
TAN Card or TAN stands for Tax Deduction and Collection Account
Number. TAN registration is mandated for businesses deducting tax at
source and is required to be quoted in TDS or TCS return.

TAN is an alphanumeric number of 10 digits. All persons are mandated

to hold TAN Card for deducting or collecting the tax. According to
Section 203A of the Income Tax Act, 1961. The alphanumeric number
is assigned by the Income Tax Department and is required to be quoted
on all TDS returns. TAN is required by every individual since returns
TIN facilitation centers accepts the return from Tax Deducted at source
or Tax collected at source. Banks are not allowed to accept TDS/TCS
challans if TAN is not quoted. It should be noted that if the TAN is not
requested and/or alphanumerical 10 digit number is not quoted in
specific documents such as TDS/TCS, e-TDS and TDS/TCS challans, it
may impose a penalty of Rs.10,000 TAN Card Full Form TAN Card or
TAN stands for Tax Deduction and Collection Account Number. TAN
registration is mandated for businesses deducting tax at source and is
required to be quoted in TDS or TCS return.
 WHO NEEDS TAN CARD

TAN is mandatory for any company, firm, or individual, who deducts or

collects tax at source, on behalf of the Income Tax Department. Failure
to obtain TAN or quoting incorrect TAN may incur a penalty of
Rs.10,000.

However, obtaining TAN is not compulsory in the following cases:

• Under section 194-IA, for tax deducted at source while buying

immovable property. You can use your PAN instead.

• Under section 94-IB – tax deducted by a tenant (for

home/building/land).

TAN allotted for TDS can be used for TCS (tax collected at source) too.
TIN facilitation centers do not accept TDS/ TCS returns without TAN.
Banks also do not accept challans for TDS/TCS without TAN.
 WHAT ARE THE BENEFITS OF TAN

You must quote your TAN number in your TDS or TCS return, pay
payment certificates, annual information return, and other documents;
else you could incur penalties. TAN is used for deductions like salary,
interest, or dividends and should be quoted in returns, challans, and
certificates.

WHY DO YOU NEED TAN

TAN helps you deposit TDS to the Central< Government account and
generate Form 16. The ITD also uses TAN to auto-capture data like the
name, address, and postal index number of the TAN holder. TAN can
also be used for filing TDS returns, generating challans and certificates.

HOW TAN AFFECTS YOUR TAX DEDUCTION

Individuals deducting or collecting tax at source need to have TAN;

otherwise, they may not deduct taxes from salaries and commissions to
another person. TAN is mandatory if you are looking to make legal
salary transactions.
Failure to quote your TAN in some of these important documents can
result in a penalty. Which is why quoting your TAN is even more
important. It is also important to deposit TDS/ TCS, impacting your
deductions and even affecting your tax certificates.
 TYPES OF TAN APPLICATION

There are two types of TAN applications:

1. Request for Correction in TAN Data: It allows you to make

changes or corrections in TAN data.

2. Application for Allotment of TAN: Individuals without a TAN card

can submit Form 49B for issuance of the same. You can make the
application at the TIN facilitation centers established by NSDL or
make an online application.

What Are the Documents Required for TAN Card

Apart from learning how to apply for a TAN card online, one should
take note of the required documents. An applicant needs to submit two
vital documents:

• A Duly Signed Acknowledgement Page

• Demand Draft Within 15 Days of Application

In addition, individuals must superscribe the envelope with the terms

‘application for TAN’ and mention the acknowledgement number.
 HOW TO APPLY TAN CARD ONLINE

An application for allotment of TAN may be made either online or

offline. A written set of guidelines are available to make this process
easier for the applicants.

1. Online application
• Visit NSDL website: Go to the NSDL-TIN website dedicated for
TAN applications.

• Select application type: Choose the appropriate application type

based on whether you are applying as an individual or an
organization.
• Fill Form 49B: Complete Form 49B with accurate details such as
name, address, contact information, and TDS-related details.

• Submit supporting documents: Attach necessary documents like

proof of identity and address as per the guidelines provided.

• Pay fee: Pay the application fee online through the portal.
 HOW TO APPLY TAN CARD OFFLINE

On the other hand, if you are unable to submit Form 49B through online
mode, you can also apply offline. Take a look at the offline process:

• From the TIN FCs or the TIN website, Download the TAN application
form.

• The form must be filled in block letters and probably in English.

• The applicant’s address has to be an Indian address only.

• The duly filled and signed application form 49B needs to be submitted
to the nearest TIN-FC.

• Left-hand thumb impression, if used, should be attested by a

Magistrate, a Notary Public, or a Gazetted Officer, under official seal
and stamp.

• No additional documents need to be submitted other than form 49B.

• Refer to the instructions given on the Form.

• An amount of Rs.65 (including GST) needs to be paid as a processing

fee at the counter of TIN-FC.
 CONCLUSION

Pan and Tan cards are fundamental components of the Indian financial
system. They play a crucial role in tax compliance, financial transparency,
and ensuring a smooth flow of financial transactions.

By obtaining these essential documents, individuals and entities can

participate seamlessly in various financial activities and ensure compliance
with tax regulations. The application processes are user-friendly and can be
completed both online and offline, making these cards easily accessible to
all.

Understanding the importance and application process of Pan and Tan cards
is essential for navigating the financial landscape of India and ensuring
smooth tax compliance. Remember to keep your cards safe and readily
accessible for future financial transactions and tax-related activities.
 BIBLIOGRAPHY

For successfully completing my project file. I have taken help from the
following websites links:

• www.topper.com

• www.cleartax.in

• www.acko.com

• www.bajajfinserv.in