PAN Card Eligibility - Who is Eligible for PAN Card Apply?

The Permanent Account Number (PAN) allows the Government of India to know all the details of transactions carried out by individuals and companies for taxation purposes. This document is mandatory for all taxpaying entities in India, whether they are a person, company, trust or HUF (Hindu Undivided Family).

Check the sections below for a comprehensive overview of PAN card eligibility criteria for both resident and non-resident Indians, foreign citizens, and more. 

Who Can Apply for a PAN Card?

The following types of people and entities can apply for a PAN card based on the eligibility criteria and type of PAN card they wish to apply for: 

• Individual Adults: Individuals who are 18 years of age or above can apply for a PAN card with proof of identity, address and date of birth documents. A PAN card is mandatory for individuals who have a taxable income. 
• Minors: Individuals below the age of 18 can apply for a minor's PAN card by submitting the required documents. Minors are, however, exempted from having to quote PAN unless they have taxable income. 
• Non-residents: Individuals who have resided in India for over 182 days in a financial year or carried out transactions where a PAN is required are eligible for a PAN card. Non-resident Indians (NRIs), Overseas Citizens of India (OCIs) and Persons of India Origin (PIOs) can apply if they have an Indian passport and address in India. 
• Companies and Firms: Registered partnership firms, companies and Limited Liability Partnerships (LLPs) operating in India can get a PAN card in the name of the organisation. They need to furnish certain documents, such as a copy of a Certificate of Registration, Partnership Deed, etc., to be eligible for a PAN card. 
• Hindu Undivided Families: A Hindu Undivided Family (HUF) can get a PAN card in its name to file taxes and carry out specific transactions. A HUF needs a PAN card as it has to file income tax returns separately from its members. Several documents of the HUF's Karta are needed to apply for such a PAN card. 
• Trusts and Associations: Charitable and religious trusts, Association of Persons (AOP), Artificial Juridical Persons (AJP) and Body of Individuals (BOI) are some entities that can also apply for a PAN card. Each of them has to submit its certification and registration documents to be eligible. 

PAN Card Eligibility Age Limit Check

There is no strict age limit for PAN cards. Individuals of all ages can apply for a PAN card, regardless if they are minors or senior citizens. 

However, minors who are yet to reach 18 years old can only apply for a certain type of PAN card, i.e., a minor’s PAN card. Their parents or legal guardians must apply on their behalf with the minor's photographs, proof of identity, and address. Once the minor becomes an adult, they can apply for a regular PAN card. 

Who Must Apply for a PAN Card in India?

Having a PAN card is mandatory for anyone who has a taxable income or carries out specific transactions in India. Here is a list of persons who must obtain a PAN card:

• Persons with a Taxable Income: Any individual whose total income is above the maximum tax exemption limit must apply for a PAN card to file income tax returns. The maximum exemption limit ranges from Rs. 2.5 lakh to Rs. 5 lakh, depending on the taxpayer’s age and chosen regime (new or old). 
• Persons Subject to TDS/TCS: Any person eligible to receive TDS (tax deducted at source) or TCS (tax collected at source) deductions in a financial year needs a PAN card. Upon receiving such a payment, they must apply for a PAN card by the end of the financial year. 
• Persons Notified by the Central Government: Exporters and importers who are required to get an import-export code must obtain a PAN card. 
• Persons with Business or Professional Income: Any individual whose total business turnover or professional income is over Rs. 5 lakh in a financial year must get a PAN card. 
• Persons Entering into Specified Transactions: Quoting one's PAN card is mandatory when the person has made specific transactions. This includes opening a bank account other than a basic savings account, purchase of mutual funds, obtaining a debit or credit card, a cash deposit of over Rs. 50,000 to a bank or post office and bank draft, pay order or banker’s cheque aggregating to more than Rs.50,000 in a year.
• Charitable Trusts: Every person receiving income from a charitable or religious trust and qualifies as an assessee for such income must apply for a PAN card. 
• Persons Selling Goods and Services: Every person must get a PAN card upon purchasing or selling certain goods and services worth more than Rs. 2 lakh per transaction if they are not covered under the list of specified transactions. 
• Any Other Person: Persons who are not covered under the above categories can apply for a PAN card voluntarily. 

PAN Card Eligibility for Foreign Citizens

NRIs, PIOs, and OCIs who have an Indian passport with an Indian address and foreign nationals who reside in India for a certain period need to obtain a PAN card. Any foreign citizen residing for over 182 days in India in a financial year, carrying out specific transactions, or owning/purchasing assets must apply for a PAN card. Foreign-based entities, including trusts and companies, may also need to get a PAN card for these reasons. 

To apply for a PAN card, foreign individuals and entities must fill out Form 49AA and submit it along with valid proof of identity and address. This includes passport, PIO card, OCI card, bank account statement, etc. 

Documents Required for PAN Card Application

Here is a detailed list of the documents required by various types of applicants for different types of PAN cards:

For Indian Citizens and Entities

• Proof of Identity: Voter ID card, Aadhaar card, driving licence, passport, ration card, pensioner’s card, CGHS card, original bank certificate with attested photograph, or any government-issued photo ID card
• Address Proof: Aadhaar card, passport, Voter ID card, utility bills (electricity, piped gas, landline, broadband, or water), domicile certificate, ration card, bank account statement, etc. 
• Proof of Date of Birth: Birth certificate, passport, Aadhaar card, school leaving certificate, matriculation certificate, marriage certificate, etc. 
• Other Documents Required by Specific Applicants: 
• For Hindu Undivided Family: Affidavit of the HUF issued by the Karta with details of family members and family’s address, and identity proof, address proof, date of birth proof of the Karta
• For Companies Registered in India: Valid Certificate of Registration issued by the Registrar of Companies
• Partnership Firms and Limited Liability Partnerships (LLP): Valid Certificate of Registration issued by Registrar of Firms or partnership deed
• Trusts: Certificate of Registration Number or trust deed 
• Local Authorities, AOP, BOI and AJP: Certificate of Registration Number by Registrar of Cooperative Society, Charity Commissioner or another authority, agreement or any other identity/address proof 

For Foreign Citizens and Entities 

• Proof of Identity: Passport, PIO card, OCI card, or TIN (Taxpayer Identification Number) or CIN (Citizenship Identification Number) attested by ‘Apostille’, Indian Consulate, High Commission or Embassy in the applicant’s country of residence
• Address Proof: Passport, OCI card, PIO card, bank account statement in residence country, registration certificate issued by  Foreigner’s Registration Office, Visa granted plus appointment letter from any Indian company, NRE bank statement issued in India, or CIN or TIN attested by relevant “Apostille”, Indian Consulate, Embassy or High Commission 
• Other Documents: Attested copy of Certificate of Registration in country of residence or registration certificate issued in India or approval granted to set up office in India (for categories other than individuals and HUFs)

Benefits of PAN Card

There are several benefits of owning a PAN card, including the following:

• A PAN card is an essential proof of identity that can be used reliably at any private or government organisation. 
• It simplifies the tax filing process by recording every financial transaction, allowing you to check your taxable income accurately. 
• A PAN card is mandatory when opening any bank account except for basic savings accounts and time deposits above Rs. 50,000. 
• You also need a PAN card to open a demat account and to purchase shares, and other securities worth over Rs. 1 lakh in a financial year. 
• Having a PAN card lets you avoid the penalty of higher TDS at the rate of 20% under Section 206AA. 
• You need to have a PAN card in order to carry out high-value transactions, including hotel payments, travel costs, and other expenses. 
• A PAN card allows you to apply for a loan or a new credit card. 
• By opening a PAN card in a minor’s name, parents can create additional proof of identity and date of birth, allowing the minor to hold financial assets. 

Who Does Not Need a PAN Card?

Despite the many benefits and usage of PAN cards, they are voluntary and optional, like passports, Aadhaar cards and driving licences. It’s only mandatory for taxpayers and people carrying out specific transactions and investments. Here are the people who do not need a PAN card:

• Minors do not need a PAN card as they can quote either their parent’s PAN or that of a legal guardian if they are not liable to pay tax.
• NRIs do not have to quote their PAN if they have alternative identity and address proofs, even for specified transactions. 
• Anyone without a taxable income does not need to have a PAN card. Even for specified transactions, they can submit a Form 60 declaring that they don’t own a PAN card and they don’t have a taxable income. 

While the PAN card is not mandatory, anyone who fulfils the PAN card eligibility criteria can get it. However, a PAN card is mandatory for individuals or entities, such as HUF, companies, trusts, etc., if they have taxable income. Furthermore, those who want to participate in certain financial transactions must have a PAN card. Even foreigners can get a PAN card if they have an income source in India. 

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