How long does it take to receive a PAN card after applying?
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How long does it take to receive a PAN card after applying?
A PAN card is a vital document for Indian citizens, as it links all the financial transactions made by an individual or an entity. By doing so, it curbs tax evasion as every transaction made is linked and recorded. PAN stands for Permanent Account Number, and it is a ten-character alphanumeric identifier issued by the Income Tax Department to Indian taxpayers.
You require a PAN card while carrying out high-value transactions, such as opening a fixed deposit at a bank or NBFC. Even businesses, whether functioning as an online marketplace or a physical company, require a PAN card, as it serves as their tax identification. Thus, a PAN card is an essential document for financial purposes and as an identity document.
Importance of having a PAN card
For an Indian taxpayer, a PAN card is one of the most important documents, as it serves as the legal identity verification for various purposes, including opening a bank account. Daily cash deposits exceeding Rs. 50,000 at a bank now require PAN card confirmation in order to combat fraud and money laundering. You must also provide your PAN details while applying for a new credit or debit card. Failure to do so can result in the rejection of your application.
Even while availing of a loan, you are required to provide your PAN information. Similarly, you must furnish your PAN details while trading shares through trading and Demat accounts. Thus, any financial activity in the country now requires you to provide your PAN information. Besides financial transactions, your PAN card can also be used as proof of identity.
If you do not have a PAN card, you are penalised by financial institutions. For example, u/s 206AA of the Income Tax Act, your bank will deduct TDS at 20% on the annual interest earnings on savings deposits instead of 10%.
How can you apply for a new PAN card?
Given its importance, it is crucial that you apply for a PAN card. You can take either the online or offline route when applying for a new PAN card.
– Online route
Applying for a new PAN card online is simple and hassle-free. You just have to visit the official NSDL website, select the correct form, provide the necessary details, and submit the application. You must, however, ensure that all the details provided are accurate. Once you submit the application, you can track the status of your PAN online.
– Offline route
You can also apply for the PAN offline. You can do so by first downloading the application form from the NSDL website. Fill out the form correctly and provide copies of all the documents mentioned on it. You can then take the form and the supporting documents to the nearest PAN service center and submit them.
How long does it take to receive the PAN?
Once you have submitted the application form online, it takes around 48 hours for the application to be verified and the PAN card to be issued. However, it is important to note that the verification time can take longer if the correct documents aren’t submitted.
Some of the documents that are required to get the PAN issued within 48 hours include:
- Aadhaar Card
- Driver’s License
- Voter ID
- Passport
- Pensioner copy (if applicable)
Once the PAN card is issued and dispatched, it can take anywhere between 15 and 20 days for the physical card to reach your address. It is important to note that if you apply for the PAN card offline, it can take around 15-20 days to receive the physical copy by post.
Conclusion
In India, a PAN card is one of the most important documents for taxpayers. It is provided to individuals and entities, as even companies require PAN to conduct business. Without PAN, you will have to pay higher TDS rates, and you will encounter several challenges while trying to perform financial transactions. You can apply for a PAN online or offline; if you apply for the PAN online, you can get the online copy within 48 hours. However, if you apply for the PAN offline, you will have to wait for 15-20 business days to receive the physical copy.
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