Income Tax Pan Verification

Income Tax Pan Verification: Overview

For any financial transaction in the economy today, PAN (Permanent Account Number) card or at least its number is mandatory. From opening a bank account to purchasing gold, all transactions above the threshold limit need to be verified by your PAN Card. Almost all financial institutions like insurance companies and banks require a PAN card for its transactions. For all these entities, a facility for online PAN verification is provided. If all the necessary details are available online, the PAN card can be verified even on behalf of someone.

The NSDL e-Governance Infrastructure Limited has been authorized by the Income Tax Department for launching an online service for PAN verification. Authorized entities can use this service to verify PAN details using the following three modes:

Eligibility for PAN Verification

Not everyone is authorized to use online PAN verification. The following individuals and entities are eligible to use this service:

  • Banks
  • Non-Banking Financial Institutions Approved by the Reserve Bank of India
  • Insurance Repository
  • Insurance Companies
  • Government deductor and companies that have to file TDS/TCS returns
  • Credit card companies
  • Mutual funds
  • Companies that submit Annual Information Return
  • Educational Institutions that are established by Regulatory bodies
  • Depositories
  • Clearing corporations/commodity exchanges/stock exchanges
  • Income Tax projects
  • Central and State Government Agencies
  • Reserve Bank of India
  • Income Tax Projects
  • Goods and Services Tax network
  • Department of Commercial Taxes


There are essentially three modes available to do the PAN verification. An entity based on their usage and the number of PANs that they need to verify on a daily basis, can choose the mode that suits them the most. They are:

PAN Card Verification on Screen

To use this service the users, have to log in to the website first. After logging in, the users can submit details of maximum five PAN numbers on the screen and on submitting the same, the details of the PANs are available on the screen.

PAN Verification by Uploading File

For this mode, the user has to login first. Then they can upload a file which has a maximum of 1000 PANs. The only thing to be careful of is that the file format can only be in the one approved by NSDL e-government. The file once uploaded has to be submitted and within 24 hours the site provides all the details of the PANs provided. If the format of the file is incorrect the system automatically sends a message for the same.

PAN Verification Using Software

Under this mode, the user needs to use a software application on the verification website in order to verify the PAN. This facility is chargeable.

Requirements for Online PAN Verification

There are certain pre-requisites which have to be met in order to be entitled to use the Online PAN Verification.

  • The entity should have a Digital Signature Certificate issued by a licensed Certifying Authority.
  • The following authorities can issue the Digital Signature Certificate to the firm

    Safe Scrypt
    Institute of Training and Research in Banking Technology
    Capricorn Identity Services
    (n) Code Solutions
  • Following are the requirements in the configuration of the systems.

    32 bit Oracle Java
    Windows 7
    Windows XP Professional Pack 3
    Internet Explorer version 7,8,9 and 10
    Latest SafeNet etoken drivers

Change or Renewal of Digital Signature Certificate

An organization needs to follow the given procedure to change the details of the Digital Signature Certificate.

  • Use your existing Digital Signature Certificate to login
  • Choose the option, “Change DSC Details”
  • Provide all the required details which have to be linked to your user ID
  • Select the renewed or changed Digital Signature Certificate  

Registration of Online PAN Verification

A few documents have to be submitted by an applicant who intends to register with NSDL e-governance for Online PAN verification. The applicant, on the letter head of the entity, has to provide a signed copy of the terms and conditions with a demand draft for the registration charges. Besides, the entity also needs to submit an authorization letter and a screen shot of the new Digital Signature Certificate. Apart from this, if applicable, a copy of the certificate or license issued by the regulatory authority needs to be given. The document requirement is as follows:

  • The depository participants need to submit the SEBI registration certificate
  • Government deductors or companies need to submit the latest provisional receipt of TCS/TDS returns that they have filed
  • Any entity or company which is required to give an Annual Information Return has to present the latest provisional receipt of Annual information Return filed by them.
  • A copy of the license given by RBI needs to be submitted by the Non-Banking Financial Companies
  • A copy of the license issued by NHB needs to be given by the Housing Finance Companies
  • All mutual fund companies need to submit their SEBI registration certificate

Requirement for Online PAN Verification

It is mandatory to submit certain documents and details while registering for online PAN verification. The following details are mandatory to be submitted for online PAN verification.

  • Organizational Details
  • Reason for applying for PAN verification facility
  • Payment Details
  • Digital Signature Certificate 

The detailed requirement is listed as follows:

 Organizational Details

  • Name of the Entity
  • PAN/TAN of the entity
  • Personal details
  • Category of the entity
  • Contact Details

Payment Details

  • Mode of Payment
  • Amount of Payment
  • Instrument Number

Details of Digital Signature Certificate

  • Name of verifying authority
  • Serial Number of the Digital Signature Certificate
  • Class of the Digital Signature Certificate

Details of Payment

The following aspects about payment are important while registering for the online PAN verification certificate:

  • The registration charges are Rs.12,000 plus taxes. The taxes applicable on the registration charges are Krishi Kalyan Cess, Swachh Bharat Cess and Service Tax. The total amount including taxes is Rs.13,800.
  • The facility has to be renewed on an annual basis
  • The facility of File and Screen based are chargeable. The charges are as follows:
    Range for Number of PANs in File Charges (Excluding taxes)
    1-200 60
    201-400 120
    401-600 180
    601-800 240
    801-1000 300

  • Any company using API based or File and Screen based facility need to maintain a sufficient amount under its user ID so that they can carry on the verification of PANs exceeding free daily limit 
  • Payment can be done by cheque or demand draft in the favour of NSDL-TIN and payable at Mumbai
  • Name of the entity and the acknowledgement number has to be mentioned on the reverse of cheque or demand draft
  • The registration charges are refunded if the Income Tax Department rejects the registration. Apart from this reason, the registration charges are non-refundable.

There are concessional rates for entities which approve PANs more than 7.5 lakhs annually. There are slabs and the payment and the limit varies with each slab.

Slabs(PANs verified annually) Rate (Paisa) Excluding taxes Minimum Daily Free Limit
Up to 7.5 lakhs 30 750
>7.5 Lakhs to <=15 lakhs 25 1000
>15 lakhs to <=30 lakhs 15 1500
Above 30 lakhs 5 2500

All the charges are exclusive of taxes and Swachh Bharat Cess, Krishi Kalyan Cess and Service Tax and are charged as per applicable rates. The adjusted amount for free usage (Screen based PAN verification) and per PAN verification is adjusted inclusive of all the taxes.

Renewal of the Facility

The Online PAN verification facility has to be renewed annually. The details for the same are as follows:
  • The fee for the renewal is Rs.12,000 plus service tax, Krishi kalyan cess and Swachh Bharat Cess.
  • A system generated e-mail is sent to the registered mail id of the company, one month in advance from the expiry date of the facility. The e-mail gives details about the procedure to be followed for renewal.
  • The time period given for renewal of the facility is sixty days before the expiry date. The payment to renew the service can be made through NEFT, Demand Draft or Cheque.
  • To renew the facility the following steps have to be taken:

    - A renewal request has to be raised online by logging in using the Digital Signature Certificate and User ID.
    - From the payment option, select ‘Renewal of facility’ and fill up the required details.
    - If the payment has been done by Demand Draft or Cheque, the same has to be made in favour of NSDL-TIN and has to be sent to Mumbai. The address is available on the TIN NSDL website.
    - On the reverse of the cheque or the demand draft, the user ID has to be mentioned along with ‘Renewal of PAN Verification Facility’ as this helps the team track the payment.
    - To check the status of the renewal, the option of ‘Payment Status’ is available after logging in.
    - Once the renewal is done and authorized by NSDL e-Governance, an email is sent with all the relevant details like validity period and payment details. 

How to Track the Status of Registration

When an entity registers for online PAN verification, they receive an acknowledgement number, which can be used to check the status of application. If the application is rejected, a message will be displayed on the screen and if it is accepted a message showing the status along with the User ID will come up on the screen.

Authorization of Registration

For any entity to register for online PAN verification, it needs to get an approval from the Income Tax Department. After the registration is complete, the NSDL e-Governance ensures all formalities are complete and the payment is done and then sends the request to the Income Tax Department. On successful authorization an 8 digit user ID is provided to the applicant. If the request for registration is rejected by the Income Tax Department, the applicant receives a refund of the registration charges.

How to Upload File for PAN Verification

The facility of online PAN verification is only available to those entities that have been given the authorization by NSDL e-Governance. The user has to use the Digital Signature Certificate and log in on the TIN network. Once the DSC is authenticated, an access is provided to the user to the online upload system. The PAN details are not displayed if the authentication fails.

 The following points have to be taken care of by the user while uploading files:

  • The file to be uploaded is to made in the prescribed format.
  • The filename should not exceed 12 characters which can be alphanumeric. It is not permissible to use any special characters while choosing the filename.
  • After logging in successfully, the option of ‘File Upload’ has to be selected by the user from the main menu. The input file has to be digitally signed before uploading.
  • NSDL e-Governance will authenticate the Digital Signature Certificate and then the file can be uploaded and a reference number is generated.
  • The file upload status and the output can be checked and downloaded from the main menu by the user.

Advance Payment

Any entity that opts for the API Based or File and Screen Based Facility has to make the payment in advance to the NSDL e-Governance. Post the payment only they can verify PANs more than the permissible daily limit. To do the same, an online advance request has to be raised by the user. The amount gets replenished when PANs more than the free daily limit are verified or when the file is uploaded. The Income Tax Department has not put any limit to the advance amount the entity wishes to pay. The entity can plan the volumes and decide the amount they wish to pay. Under the payment section of the website, there is an advance payment option which needs to be used to pay the amount.
The online PAN verification facility provided by the Income Tax Department is very helpful for many entities as quoting of PAN number has been made mandatory by the government for many transactions. The online system helps these companies to verify the PAN numbers before finalizing the deals.

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