PAN (Permanent Account Number) is considered to be one of the most relevant documents for the taxpayers nationwide. It is imperative to own a Permanent Account Number if someone wishes to categorize their financial transactions in a systematic way. The PAN system has simplified the taxation system of the country by providing a streamlined solution for tax payment. PAN system in India is similar to the Social Security Number system (SSN) in the US which was primarily used to track the citizen’s transactions for security purposes but has been recently considered as a required document for filing tax returns. Once issued, a PAN card’s validity extends through a lifetime.
The Income Tax Department has evolved over the years. One of the major technical leaps by the Indian income tax department is the development of Tax Information Network(TIN) which is an online portal for filing of taxes and has several other features which segregate all the features of the taxation system electronically. TIN helps in processing, collecting and accounting of direct taxes online. The Income Tax Department along with NSDL e-Governance Infrastructure Limited maintain and handle TIN.
Online Services provided by NSDL
Secondary Online Services provided by NSDL
Offline facilities offered by TIN NSDL
Finding the TIN Facilitation Center in the locality: These Facilitation Centers are present all over the country and they help in filing physical TDS/TCS applications, process PAN and TAN application. An individual can search for Facilitation Center nearby by entering the details of the state and the city on the TIN NSDL website.
Facilities provided by NSDL e-Governance
Major projects implemented by NSDL e-Governance
NSDL implemented a number of major projects since its conception. Some of the main projects undertaken by the NSDL are -
UTIITSL refers to UTI Infrastructure and Technology Services Limited. It was conceived in 1993 and is useful for companies/individuals investing in UTI schemes. It is the biggest financial service provider in India since it provides technology and outsourcing services to the financial and government sectors in India. The Income Tax Department of India has assigned the management of PAN application process and PAN delivering process to UTIITSL.
The Income Tax Department of India has entrusted UTIITSL with providing and maintaining the services link with PAN to Indian citizens and NRIs.
The PAN services provided by UTIITSL are-
OR, if you’re a foreign citizen then you can apply for PAN by filling up the form 49AA from the UTIITSL online portal or by downloading the form (49AA) in pdf format and filling it up manually
High level of black money circulation is a hurdle to any growing economy. In order to curb the problem, the income tax department developed ITBA-PAN (Income tax business application-Permanent Account Number), which is a software used to analyze the transactions throughout the country to minimize black money trail. The ITBA-PAN software helps the Income Tax Department to keep a track of all the financial transactions of the PAN-owners throughout the country. It also helps the ITD and its subsidiaries like UTIITSL and NSDL to provide a new PAN to an individual within 48 hours.
Benefits of ITBA-PAN
PAN-KYC Status
KYC or Know Your Customer is based on the directives provided by the Reserve Bank of India. It is a system to keep a track of the financial transactions of an individual and is majorly used as a tool to prevent tax evasion. Since it is used for tracking the money trails of an individual, it could also be helpful in preventing money laundering, online identity theft or any other financial fraud which is inflicted electronically.
Role of PAN in KYC
The 10-digit alphanumeric sequence, i.e, PAN is considered to be one of the major systems used for keeping track of an individual’s finances, it is important to link PAN with KYC in order to get an overall view of the financial status of that person. PAN acts as a proof of identity of an individual, hence, one of the main documents that are required to verify the KYC process is PAN.
Steps to check KYC status
Login to Central Depository Services (India) webpage