What Is PAN ?

June 2, 2016 - Income Tax for Starters (Basics)

(Last Updated On: March 9, 2017)

PAN, permanent account number is issued by income tax department in form of a 10- digit alphanumeric number to each tax
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 payer. It is a laminated card, which serves as an important proof of identication. PAN is a unique code for each individual and is
valid for lifetime, it is like an account maintained with Income Tax Department.

READING YOUR PAN

PAN Card shows the name of the holder, fathers name, D.O.B along with the photograph of the holder. The structure of PAN is
AAAPJ1234A The rst 5 characters of the PAN are alphabets, out of which the rst three are alphabetical sequence from AAA to
ZZZ. The fourth character depicts the status of the pan card holder. The various status that are available are as follows:

P for individual C for company G for Government

H for Hindu Undivided Family (H.U.F ) A for Association of Persons F for Firm

B for Body of Individuals ( B.O.I ) L for Local Authority J for Artifical Judicial Person

T for Trust

The fth character is the rst character of the holders surname/ last name. For non individuals, it is rst character of holders
name. The next four characters are numbers from sequence of 0001 to 9999. The last character, the 10t h one is an alphabetic
check digit.

WHY DO I NEED PAN CARD?

To reduce tax evasion, IT Department has tried to make Quoting of pan mandatory in almost all nancial transactions, over a
specified value and in all transactions with the department. Some of the financial transactions that require PAN are-

Opening a new bank account

Applying for credit card or debit card

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 Payment of life insurance premium for an amount aggregating INR 50000/- or more in a year

Sale or purchase of immovable property valued at INR 5 lakh or more

Sale or purchase of a motor vehicle or vehicle (does not include two- wheeled vehicles, inclusive of any detachable side car
having an extra wheel)

Term deposit with any banking company exceeding INR 50000/-

Deposits in any Post office savings bank exceeding INR 50000/-

Contract for sale or purchase of securities for a value exceeding INR 100000/-

For a new telephone connection

Payments to hotels and restaurants for bills exceeding INR 25000/-

Cash deposit of INR 50000/- or more with any bank during one day

Payment in connection with travel to any foreign country for amount exceeding INR 50000/-

Purchase of jewellery for INR 500000/- or more

HOW TO APPLY FOR PAN?

The Income tax department has authorised UTI Investor Services Ltd (UTIISL) and NSDL to set up TIN facilitation centers for the
convenience of PAN applicants. Thus, one needs to apply for PAN by submitting the pan application in the prescribed form ( form
49A/ 49AA ) along with 2 recent passport size color photographs, proof of ID, Address and Date of Birth and fee to the facilitation
center or an online application can also be made on the website of UTIISL or NSDL. (https://tin.tin.nsdl.com/pan/index.html ). The
pan application can be downloaded from the website of Income tax department, or photocopied (on A4 size ) or obtained from
any other source. The charges for applying PAN are INR 106/- ( For Indian communication address ) and INR 985/- ( For
communication address outside india ). The pan card once issued is delivered by the facilitation center to the address mentioned
in th application. For any changes or correction, you need to apply for Request For New PAN Card Or/ And Changes In PAN Data
form which can be downloaded the same way the original form was downloaded.

HOLDING OF MORE THAN ONE PAN NOT ALLOWED

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 Obtaining or possessing more than one PAN is against the law, and you may need to pay a fine INR 10000/-.

KNOW YOUR PAN

For any other PAN related query, contact the Aaykar Sampark Kendra (ASK) at 0124-2438000 or 95124-2438000 from NCR .

Author

Team Tax2win

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