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2018

Understanding Permanent Account Number

UNDERSTANDING PERMANENT ACCOUNT NUMBER

Permanent Account Number (PAN) is the unique 10 digit number which is allotted to every tax payer in India whether India citizen or NRI. It is not only mandatory for filing Income Tax Returns but also needed in many financial transactions in India. In this article we shall focus on structure of PAN number.

What is PAN?

A Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued by Income Tax Department of India.
PAN is a permanent number, is unaffected by a change of address, even between states and is not transferable.
It is illegal to own more than one PAN.
The PAN’s primary purpose is to bring a universal identification key factor that links and tracks various documents and information regarding taxes and financial transactions, such as loans, investments, buying and selling real estate and other business activities of taxpayers.
By tracking the above it indirectly prevents tax evasion through non-intrusive means.

Structure of the PAN:

PAN card contains following details about tax payer:

  1. Full name of the taxpayer;
  2. Date of Birth/Date of Incorporation;
  3. Status;
  4. Gender in case of individuals; and
  5. Father’s name in case of individual (including in the cases of married ladies).


The Date of Issue (DOI) of the PAN card can be found on the right hand side of the photo on your PAN card.

The 10 Digit Alphanumerical Sequence:

Let’s take a look at the breakdown of the 10 digit alphanumerical sequence:

1 2 3 4 5 6 7 8 9 10
First three alphabets consist of a series running from AAA to ZZZ. 4th Letter depends on type of assessee as follows: The fifth character of the PAN is the first character of the following: The next four numbers are sequential numbers running from 0001 to 9999. The last digit is an alphabetic check digit.

C - Company
P - Person
H - HUF (Hindu Undivided Family)
T — AOP (Trust)
B — Body of Individuals (BOI)
L — Local Authority
J — Artificial Juridical Person
G — Govt

  • First letter of Surname in the case of Individual

OR

  • First letter of the name in case of the Entity, Trust, Society, Organization, HUF, etc.

 

Applying for a PAN Card:

  • Anyone can apply for PAN card irrespective of their income level.
  • There is no restriction on age, region or nationality as well.
  • In case if an individual is below 18 years of age, he/she can apply as minor.
  • In case of application from minor, the Application must be signed by a legal parent or guardian.


Documents required:

Following documents are required for obtaining PAN card:

1. Age Proof:

  • Birth Certificate
  • School Leaving Certificate
  • Driving Licence
  • Election Card
  • Aadhaar Card
  • Passport


2. Legal Address Proof of applicant or Guardians:

  • Driving Licence
  • Election Card
  • Aadhar Card
  • Passport
  • Light Bill
  • Telephone Bill
  • Passbook of Bank Account


3. Legal ID Proof:

  • Driving Licence
  • Election Card
  • Aadhaar Card
  • Passport

4. Passport sized photograph of Applicant.

How to apply for a new PAN card?

There are two ways in which one can apply for new PAN Card:

1. Offline Application:

  • Offline application for PAN card can be made by filling up details in Form 49A.
  • Form 49A can be download from following link :
    • https://www.tin-nsdl.com/downloads/pan/download/Form49A_NSDL%20e-Gov_01.06.16.pdf
  • Duly filled and signed Form 49A must be submitted along with necessary documents to any of the TIN-FCs or PAN Centres managed by NSDL e-Gov.
  • You can find out your nearest TIN-FCs or PAN Centres from following links:


2. Online Application:

  • PAN card application can also be made online.
  • Click on following link to apply for PAN online:
    • https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html


Reprint of PAN Card:

  • This application should be used when a PAN number has been allotted to you and you need a PAN card.
  • A new PAN card will be issued to you with the same PAN number.
  • Go to the NSDL website to apply for a reprint. You can go to the above mentioned NSDL and UTI sites to verify or search your PAN number.


E-PAN:

  • Instant e-PAN facility is Free of cost and instant allotment of e-Pan and is available only for a limited period on first come first serve basic for valid Aadhaar holders.
  • Applicant already having PAN should not apply for e-PAN.
  • The e-PAN facility is ONLY for resident individual and not for HUF, Firms, Trusts, and Companies etc.
  • Active Mobile number linked with Aadhaar to receive Aadhaar OTP (One Time Password).
  • To verify the registered mobile number in Aadhaar, please visit UIDAI portal (verify mobile number / email at Aadhaar).
  • E-PAN is generated using the particular available in Aadhaar, Details such as Name, Date of Birth, Gender, mobile number and address in Aadhaar is not correct or not update, please update the same in UIDAI prior applying e-PAN.


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