What are the Top Reasons Why PAN Card Applications Gets Rejected?

A PAN card is a unique ten-digit identification number issued by the Income Tax Department. Applying for a PAN (Permanent Account Number) card is an important step for many individuals and entities, as it plays an important role in financial transactions and tax compliance. Although it's quite easy and convenient to apply for a PAN card, there are times when the PAN card application for an NRI may get rejected.

There can be various PAN card rejection reasons, the key reason being filling out insufficient or incorrect information in the application form. To prevent rejection, an individual must ensure to stay informed about all the applicable rules, guidelines, and mistakes to avoid while filling out the application form. Keep reading the blog to learn more about the common reasons for PAN card application rejection and also ways to avoid them.

What are the Common PAN Card Rejection Reasons for NRIs?

A PAN card for an NRI is an important identifier in India that has various uses. Your PAN card application may get rejected, whether you apply online or offline. It happens when the information you filled out in the application form is not supported by the provided documents. Here are a few common mistakes that might seem normal, but can lead to rejection, along with the way to avoid them:

Not Using Black Ink

Using any other color of ink apart from black can lead to application rejection. The main reason behind this black ink requirement is that it provides the best contrast and more clarity when the physical forms are scanned and digitized by the system. This requirement only applies to offline PAN applications.

To Avoid

Ensure to use only black ink for filling out the form and even for signatures or thumb impressions. Every detail in the form must be filled in BLOCK letters with black ink. Do not use blue or any other colored ink. Do your signature within the designated boxes only using black ink and it must match the signature you have on your supporting documents. 

Missing Proof or Error in Document 

While submitting your PAN application, if you submit the wrong supporting documents, like address and identity proof documentation, you might face rejection. 

Failing to attach the required documents or providing irrelevant documents, unclear printed documents, and discrepancies between the documents and your application forms are a few common PAN card rejection reasons due to wrong documentation issues. 

To Avoid

While submitting the PAN application form, ensure to submit valid supporting documents. You are required to submit three different kinds of documents, which are proof of identity, birth date, and address. Make sure to upload all the required documents for verification in a clear format while filing out the form online.

Avoid missing out on any important details, and recheck all information and documents before applying further. 

Personal Details Mismatch in Documents

Discrepancies in personal details across various documents are another common PAN card rejection reason. Even a small letter difference in your name's spelling, a wrong date of birth, or an outdated address between Aadhaar, voter ID, or any other source of verification can lead to rejection. 

To Avoid

Before submitting the application, you must check and, if required, revise all the documents to ensure all the personal information is exactly consistent across your application form and all supporting documents. Try and identify the mismatch and compare the details on both documents to find out the differences.

Once you know what needs to be corrected, you can rectify it and then submit the correct application form along with the supporting documents.

Inaccurate or Incomplete Application Forms

While filing the PAN application form, you might miss out on some important information or fill in the wrong details, eventually leading to your application being rejected.

Leaving mandatory fields blank, filling in the wrong birth date or name, not attaching the photo and signature according to the guidelines, etc., can be the most common reasons behind PAN application rejection. Such errors can slow down the verification process, and your request may be turned down most of the time.

Additionally, submitting the wrong forms (Form 49A and 49AA) can lead to rejection and cause delays.

To Avoid

You must be careful with your application form and recheck it thoroughly before finally submitting it. Check each field twice, upload all the required documents as per the format, and ensure confirmation of the payment to avoid any errors that could lead to potential delays or rejections.

Ensure to submit the accurate form as it will determine your citizenship and residency status. In short, Form 49A is for Indian citizens, including NRIs (Non-Resident Indians), HUFs (Hindu Undivided Families), and other entities situated in India. Form 49AA is for foreign citizens, including PIOs (Persons of Indian Origin), OCIs (Overseas Citizen of India), and other entities situated outside India but operating in India.

Multiple PAN Applications or Duplicate Requests

When a correction is required in an NRI PAN card, many applicants mistakenly end up applying for a new PAN card instead of using the correction or reissue option for the existing one. Consequently, their application gets rejected as the system doesn't permit an individual to hold more than one PAN card.

To Avoid

If you already hold a PAN card and it needs correction, you must use the correction or update option instead of applying for a new PAN card. Before applying for a new PAN card, check if a PAN has already been allotted to you through the official portal. If you end up with two different PAN numbers unintentionally, ensure to surrender the duplicate one right away to avoid hefty penalties. This will ensure you stay compliant with the regulations and any legal issues.

Final Thoughts

After reading the blog, you must now have an idea of the common reasons that can lead to PAN application rejection and ways to avoid them. You can avoid unnecessary complications by submitting the right documents, ensuring all information is accurate, and using only black ink to fill out the form. You can save a lot of time by avoiding these common errors, as you will not have to resubmit the forms or face delays. Moreover, the PAN card application process can be made even easier with the help of experts.

When it comes to experts, Savetaxs leads the field. We have a team of experts who can assist you with everything you need help with. Whether you need a new PAN card, a correction, or a PAN-Aadhaar linking, our team will offer full support throughout the process for NRIs, OCIs, and foreign national applicants. You can stay stress-free as we provide expert support around the clock. Contact us now to join our growing family of satisfied customers.