The process of applying online for a new PAN Card is extremely simple nowadays. The amount that is required to be paid for a New PAN Card is also minimal.
Permanent Account number or widely known as PAN is ten-digit number allotted to all types of taxpayers in India. It is alphanumeric and unique to each individual or firm.
The dealing agency to maintain all correspondence and records concerning PAN is the Income Tax Department. The aim of introducing PAN is concealed in the idea of calculation of total tax that originated in the country. It then helps the Government. to fix the rate of taxation.
Legal Identity Proof
It is a valid legal identity proof and can be submitted at various places for ID purposes. Also, the GoI has made it mandatory to quote the PAN number for all financial transactions above Rs 50,000/-. Therefore, it is essential that we know about it, what the process for applying it is, and how much amount one has to pay to get a new PAN card.
Every taxpayer must have a PAN card. For getting a PAN card, one needs to file a request abiding by the entire procedure. The government charges a certain amount for issuing a new PAN card.
Few people also prefer getting the PAN card through any agent. Agents charge more than the actual costs as a fee for the work they do. Being a 3rd party, the agents keep a fixed price as their service fee.
So, it is your choice in selecting the method of applying for a new PAN card. You can either apply through an agent or the Do-It-Yourself-mode by filing the form and applying for PAN online.
Cost Incurred to Apply for a New PAN Card
The amount varies for the resident of India and the NRIs. The amount you pay while applying for a new or duplicate PAN also varies.
For a Communication Address within India
The total amount to be paid for the processing of a PAN card application is Rs. 107.00. This amount comprises of the price and the service tax.
The detail of cost is Rs. Ninety-three for the PAN and 15.00% service tax. Therefore, 93 + 13.93 = 106.93 which when rounded off is Rs. 107.
You can pay it through any of the available modes be it a Credit card, Demand Draft, Debit Card or Net banking.
For a duplicate PAN card in case of damage or loss and reprinting in the event of a mistake, the amount payable remains the same as the new PAN card.
For the Communication Address Outside India
A person can apply for a PAN card even when staying outside India. For individuals with communication address outside India, the charges are comparatively more.
The charges for the PAN card and the service tax remain the same irrespective of the communication address.
Where Lies the Difference then?
The difference in the total amount comes due to the shipping costs. The total amount payable is Rs. 994.00. The application fee is Rs. 93 with Rs. 771.00 for dispatch and service tax of 15% over this sum. You can pay it only via debit or credit card or a Demand Draft.
An extra charge is added to the choice of payment mode and the bank that you opt. You pay the amount to the bank. For those applicants who pay through the credit or debit card, a 2% additional charge plus the applicable taxes of the application fee is leviable.
While making payment through Net banking, bank charges an additional cost for providing gateway facility.
3rd Party or Agent Fee for a New PAN Card
Some people avoid spending time over the internet for filing the form and instead prefer paying a few bucks more using services of agents for applying for a PAN.
Agents charge an additional amount as their service fee along with the actual amount payable for the processing of PAN. Usually, agents charge around Rs. 300 for communication address within India. This amount varies for the address outside India.
With PAN being the most significant part of taxpayers life, applying online to get a new PAN card has become much more comfortable. For indulging in any financial transaction without having a PAN card, the government charges penalty.
The government has taken decisive measures to provide the PAN card to people at a much lower price. With different options for applying for a PAN card and different modes of paying for it, the whole process has become simpler.