PAN Verification and Validation Guidelines in Post Offices

1. Introduction

As per SB Order No. 02/2022, PAN verification is done online through Protean e-GOV Technologies (formerly NSDL) since 25.01.2022.

2. Compliance with Income Tax Department (Effective 01.05.2024)

The Department of Posts (DOP) must comply with the Income Tax Department. Mandatory checks include:

a. PAN status

b. Date of Birth (DOB)

c. Name

d. Aadhaar-PAN linking status

3. PAN Validation through Finacle

When validating PAN through CCRC/CMRC menu:

a. PAN number

b. Name

c. DOB

are sent to NSDL for verification.

4. Response and Acceptance Criteria

PAN will not be accepted if:

a. PAN status is not "Existing and Valid"

b. Name does not match

c. DOB does not match

5. Aadhaar-PAN Linking Status

If linking status is inoperative, TDS will apply at a higher rate.

6. Automated Acceptance

After Finacle level validations, eligible PANs will be automatically accepted.

7. Manual Intervention (Temporary)

Until automated acceptance, Counter PA/Supervisor must:

a. Accept PAN if status is "E" (Existing)

b. Reject if name/DOB status is "N" (Not Matched)

c. Reject if Aadhaar-PAN link status is NA (Non-Individual PAN)

8. Responsibilities

Counter PA/Supervisor must perform actions mentioned above.

9. Mandatory PAN Validation

As per SB Order No. 8/2023, valid PANs are required for:

a. Balance exceeding ₹50,000

b. Credits exceeding ₹1 lakh in a financial year

c. Aggregate withdrawals/transfers exceeding ₹10,000/month

10. Vigilance

Ensure PAN validation during account opening and for existing accounts.

11. Form 60 Alternative

If depositor furnishes Form 60, account may be opened, but PAN must replace Form 60 within 2 months.