PAN Verification

Introduction

PAN verification is a vital process that ensures the authenticity of your Permanent Account Number (PAN). This simple and essential step can be done online, providing convenience and quick results. The Income Tax Department has authorized NSDL e-Governance Infrastructure Limited to carry out the PAN card verification, making it accessible to individuals and entities alike.

Here’s everything you need to know about PAN card verification, including its online process, eligibility, and more.

PAN Card Verification Online Process

The PAN (Permanent Account Number) verification online process is a method used to confirm the validity of a PAN card issued by the Income Tax Department of India. This process is often needed by organizations, employers, and financial institutions to ensure that the PAN provided by an individual or entity is genuine. It helps prevent fraud, verify identity, and is crucial for various financial transactions.

Step-by-Step PAN Card Verification Online Process:

1. Visit the Official Website:

For online PAN Card verification, Go to the official website of the Income Tax Department or NSDL (National Securities Depository Limited) or UTI Infrastructure Technology and Services Limited (UTIITSL), which provide PAN verification services.

Image Source: https://eportal.incometax.gov.in/

2. Login or Register for PAN Card Verification:

For bulk PAN verification, organizations need to register with NSDL or UTIITSL.

For individual Pan verification, users can directly access the portal without any registration.

After registration, log in to the account using the credentials provided.

3. Select PAN Verification Option:

After logging in, choose the “PAN Verification” option from the available services on the website.

4. Enter the PAN Details:

For individual verification, simply enter the PAN number in the provided field. In the case of bulk verification, upload a file (typically in CSV format) containing multiple PAN numbers.

5. Submit and Verify:

After entering the PAN number(s), submit the form. The system will then process the request and return the verification result.

The result will display whether the PAN is valid or invalid, along with the name of the cardholder and other relevant information (like the PAN’s status and whether it is active or inactive).

Types of PAN Verification:

1. Individual Verification:

This method is for users who need to verify one PAN at a time. It is simple and can be done without any prior registration.

2. Bulk PAN Verification:

This service is primarily for organizations like banks, financial institutions, and government bodies that need to verify multiple PANs at once. They must register with NSDL or UTIITSL and follow the bulk verification process.

3. Verification by Aadhaar:

Some platforms allow PAN verification using an Aadhaar card. Linking Aadhaar with PAN is mandatory, so users can verify their PAN status through Aadhaar details as well.

You may also want to know PAN Card Form 49AA

Why is PAN Verification Important?

• Preventing Identity Fraud: PAN verification helps detect and avoid fraud by ensuring the PAN provided is legitimate.
• Fulfilling KYC Norms: Financial institutions, brokers, and employers use verification to comply with Know Your Customer (KYC) regulations.
• Tax Filings and Compliance: Verifying PAN ensures correct tax filings and prevents discrepancies in financial and legal documents.
• Legal Compliance: It is required under various sections of the Income Tax Act, ensuring you comply with the law.

How to Verify PAN Details Issued by the Company?

To verify the PAN details issued by a company (whether an individual PAN or the company’s PAN), there are multiple methods available through authorized online platforms. This process is typically used by organizations to ensure that the PAN provided is legitimate, belongs to the correct entity, and meets regulatory requirements such as KYC (Know Your Customer) norms.

Process to Verify PAN Details Issued by a Company:

1. Visit the PAN Verification Portal:

The first step is to visit an authorized PAN verification platform. You can use:

• NSDL e-Governance Website: (https://www.tin-nsdl.com/)
• UTIITSL PAN Verification Portal: (https://www.pan.utiitsl.com/)

Both of these platforms are authorized by the Government of India to offer PAN verification services.

2. Login or Register for PAN Verification:

For individuals verifying a single PAN, no prior registration is required.

For organizations (companies, banks, financial institutions) needing bulk PAN verification, registration is mandatory. You need to sign up for a Verification account on either NSDL or UTIITSL.

Once registered, log in using your account credentials.

3. Access PAN Verification Services:

After logging in, look for the option “PAN Verification” under the available services. This service lets you enter the PAN and verify the details of any PAN holder, including companies.

4. Enter the PAN Number:

For individual verification (one PAN at a time), simply input the PAN number issued by the company into the search field.

For bulk verification, companies can upload a file containing multiple PAN numbers (usually in CSV format). This method is suitable for organizations that need to verify PAN details for many clients, employees, or contractors.

5. Submit and View Results:

After entering the PAN or uploading the file, click the Submit button.

The system will process the request and provide the details associated with the entered PAN number(s). The results usually include:

• Name of the PAN holder (either the company name or individual’s name).
• PAN status (active, inactive, or deactivated).
• Category (Individual, Company, etc.).

6. Verification Result:

The verification result will indicate whether the PAN is valid or not. It will show:

• Company Name: If the PAN is issued to a company, the company’s registered name will appear.
• PAN Status: The system will indicate if the PAN is valid and active, or if there are any issues such as being inactive or duplicate.

If the PAN is found to be invalid, the user will need to contact the company or the relevant authority to rectify the issue.

You may also want to know Know Your PAN Jurisdiction

Methods of PAN Verification:

1. Online Verification (Single PAN):

Useful for small businesses or individuals who want to verify just one company or individual PAN at a time.

2. Bulk PAN Verification:

Suitable for large organizations, banks, and financial institutions that need to verify PANs for multiple entities at once.

The company can upload a CSV file with multiple PAN numbers, and the system processes them in bulk.

3. API-Based PAN Card Verification:

Some companies integrate PAN verification directly into their internal systems using API services provided by NSDL or UTIITSL.

This is a more technical method used by large corporations, banks, or fintech companies that need to automate the PAN Card verification process.

Why PAN Verification for Companies Is Important?

• Compliance with KYC Norms: Verifying PAN details is a crucial step in fulfilling Know Your Customer (KYC) regulations, which banks, financial institutions, and businesses must comply with.
• Preventing Fraud: PAN Card verification helps to ensure that the PAN belongs to a legitimate company and isn’t being used fraudulently.
• Tax Reporting and Filing: Correct verification ensures accurate tax reporting and compliance with the Income Tax Department’s guidelines.
• Verification of Suppliers/Contractors: Companies can verify the PAN of their suppliers or contractors to ensure that they are dealing with legitimate entities.

How to e-Verify Your Returns Using Aadhaar Card?

E-verifying your returns using Aadhaar is another convenient option. Here’s how you can do it:

1. Go to the E-Filing Portal: Log in to your account.

2. Navigate to ‘My Account’: Select the option to e-verify your return.

3. Choose Aadhaar OTP: Select ‘I want to generate an Aadhaar OTP to e-verify my return’.

4. Enter OTP: A one-time password will be sent to your registered mobile number. Enter it to complete the verification.

Entities Eligible for PAN Verification

The PAN card verification service is available to various entities, including:

• Government agencies
• Banks and financial institutions
• Companies and corporate entities
• Legal entities
• Chartered accountants
• Income tax practitioners

Conclusion

PAN Card verification is a critical process that ensures the accuracy and authenticity of your PAN details. Whether it’s for legal compliance, preventing fraud, or simplifying financial transactions, verifying your PAN card online is a quick and efficient way to stay on the right side of the law.

By following the PAN verification online process, both individuals and institutions can ensure smooth transactions, maintain compliance, and prevent any misuse of PAN details.