For Indian citizens who pay Income Tax, Permanent Account Number is a unique code that acts as identification. Under the Income Tax Act, 1961this 10-character alphanumeric identifier is assigned to all individuals identifiable. An example is ABCDE1234H. This acts as a proof of identification and this is issued by the Income Tax Authority of India. The primary usage of PAN is to ensure the absence of tax evasion by tracking all economic transactions, especially those of high net worth individuals (HNI) and to identify and track all financial transactions .Three modes of verification is been offered to verify the Pan details using internet based service of NSDL.
(1) Screen based verification
(2) File based verification
(3) Software i.e. API based Verification
(1) Screen based Verification:
For NSDL After login the users, to the Tax Information Network (TIN) website (http://www.tin-nsdl.com / login / Pan Verification) can key-in up to a maximum of five PANs in the screen. The PANs would be entered in the boxes been provided on the screen & then submitted. On the response screen the response giving details of PAN will be displayed.
(2) File based Verification:
After login to TIN website the users (http://www.tin-nsdl.com / login / Pan Verification) of NSDL can upload a file containing maximum of 200 PANs i.e. file structure as specified by NSDL. a response file containing details of the PANs will be made available to the User within 24 hours. The rejection will be made available within 24 hours In case if file format is incorrect,. Up to 15 days the users can download the response at anytime as per their convenience by login at the given website link.
(3) Software (API) Application Programming Interface based PAN verification:
The facility for this purpose is an interface which can be used to make an online verification of Permanent Account Number that allows the user by accessing the verification site through a software application. For this purpose user would be provided with the URL.
Response to the User:
(i) Name of the PAN holder, in case of valid Permanent Account Number, last date of Permanent Account Number update as per ITD database & the status as “existing and valid” will be displayed. The status will be shown as “Fake PAN” If the PAN is a fake PAN as per ITD database.
(ii) The response will be “not in ITD database” In case the Permanent Account Number is not found in database. It will be forwarded to ITD for investigation In such cases if the User is able to provide a proof of this Permanent Account Number i.e. copy of Permanent Account Number card or Permanent Account Number allotment letter to NSDL
For further information on procedure for registration and charges, DPs can visit the TIN website of NSDL at http://www.tin-nsdl.com & also click on “Online Permanent Account Number verification launched”. With respect to PAN, DPs are also advised to ensure compliance with the various guidelines/circulars issued by SEBI and NSDL from time to time