DYK: You can now apply for a new PAN card online using Aadhaar-based e-signature
The Central Board of Direct Taxes (CBDT), in a circular dated 22 July 2016, has said that a new permanent account number (PAN) card can be applied for online, using an application form that can be e-signed using the Aadhaar linked e-signature. For individual PAN applicants, the entire process is managed by PAN service providers: National Securities Depository Ltd (NSDL) and UTI Infrastructure Technology and Services Ltd (UTIITSL).
According to the board, “introduction of Aadhaar based e-signature in PAN application not only ensures paperless hassle-free PAN application process, but also seeding of Aadhaar in PAN, which will curb the problem of duplicate PAN to a great extent.” Here is why having a PAN is a must, and how to get it online.
THE NEED FOR A PAN
In its endeavor to check black money transactions, government has expanded the list of transactions (and decreased the limit on many existing ones) for which a PAN is mandatory. Effective 1 January 2016, PAN has to be quoted for all transactions above Rs.2 lakh. This applies to sale and purchase of all goods and services, regardless of the mode of payment.
PAN is now used for almost all the financial-sector transactions like investing in mutual funds and shares. The government has also made it mandatory for various other things like the purchase of cash cards and prepaid cards amounting to Rs.50,000 or more in year. For purchasing gold jewellery above Rs.2 lakh too, you need to furnish PAN details. Earlier you had to furnish PAN details only if the gold purchase was above Rs.5 lakh.
This move will also help the government to widen the tax base, which will result in higher tax collection.
ONLINE PAN APPLICATION
Along with making PAN mandatory for many more transactions, the government has also made it easy to get one by enabling the online application process. These online application can be made either through the portal of NSDL (http://tin.tin.nsdl.com/pan/index.html) or the portal of UTIITSL (http://www.myutiitsl.com/PANONLINE/).
Last September a digital signature certificate-based PAN application form (Form 49A) for individuals was enabled on these websites. Now, the application form has also been enabled with the Aadhaar based e-signature. Aadhaar can also be used as a proof of identity, address and date of birth, which are required to get a PAN. After filling up the online application form, an individual has to upload the scanned image of her photograph and the Aadhaar card, as per the specifications on the website.
The application fee is Rs.107, including service tax, for persons residing in India and Rs.994 for those with overseas addresses. It can be paid through credit cards, debit cards or Net banking. All these forms of payment attract a small charge, above the fee payable.
At present, the facility for dispatch of PAN cards outside India is available for a select list of countries. Applicants from other countries may contact the service provider before applying.
Aadhaar authentication and e-KYC Services
Aadhaar Authentication is a process by which Aadhaar number along with Aadhaar holder’s personal information (biometric/demographic) is submitted to UIDAI and UIDAI responds only with a “Yes/No”. The purpose of authentication is to enable Residents to provide their identity and for the service providers to supply services and give access to the benefits.NSDL e-Gov also provides e-KYC services of UIDAI to entities whereby the KYC details of a Resident like Name, Address, Date of Birth, Gender, Photograph, Mobile No., e-mail ID (if available) are provided by UIDAI in a secured manner to the end user.
Aadhaar authentication and e-KYC services are available to different sectors of the industry ranging from Banks, Insurance companies, Government Organizations, Passport Offices, Airports, Depository Participants, Payment Gateway Provider, etc
Some of the benefits of Aadhaar authentication and e-KYC:
- Promotes paperless environment
- No risk of forged documents
- Authorization of Resident thereby protecting Resident privacy
- Compliant with latest standards notified in IT, Amendment Rules 2011
- Real time and instantaneous results
- Elimination of paper verification, movement and storage