PAN (Permanent Account Number) is a unique 10 digit number provided to individuals or companies by the Income tax department of the Government of India. In no case, two individuals can have identical PAN and also an individual can have more than one PAN. If you reapply for a PAN, in case of lost/stolen, you will get a new PAN card but the PAN will still remain the same.
Any financial transaction or Purchase or Sale of a product estimated above a limit of Rs. 50,000 should have the PAN quoted in the pertaining document. But there are chances for individuals to quote a Wrong/duplicate/fake PAN on the documents. In order to avoid these confusions and to act timely Income tax department has authorised the NSDL (National Securities Depository) to provide an online verification service for the verification of PAN’s by the respective entities.
The following entities are eligible to avail this facility:
• Government Agencies • Reserve Bank of India • Banks • Depositories • Depository participants • Mutual Funds • Companies, required to furnish annual information return • Credit card companies • Stock exchanges • Companies and Government deductors who file the TDS/TCS returns.
This verification can be done in three modes.
1. Screen Based verification, where a maximum of five PAN’s can be furnished and submitted. The verification will be done online and a response will be given.
2. File Based Verification, where a user can upload a maximum of 200 Pan’s can be submitted. A response file will be sent in a maximum of 24 hours containing the details of the PAN. The file can be rejected if in case the format is incorrect.
3. Software Based Verification, is an interface that allows users to make instant verification of the PAN by accessing the verification site through a software application.
• In case of valid PAN the name of the PAN holder, date of PAN update and the status will be displayed as “existing and valid”.
• If the PAN is a fake PAN as per the database, the status will be “Fake PAN”.
• If in case the PAN is not found in the database, the response will be “not in ITD database”. If such cases if the user is able to provide a proof of a PAN, NDSL will forward the same to the ITD for investigation.