Meaning of PAN?

“Permanent Account Number (PAN)” is a ten digit alphanumeric number which is issued by Income tax Department (ITD) under section 139A Income Tax Act, 1961. It is a unique identification number which contains the track record of all the income related aspects of an individual.

Figure 1: Pictorial Representation of PAN Card (Front & Back)

 Now we shall discuss the significance of 10 digit PAN card number in detail.

1st – 5th characters

  • First 3 characters: Alphabetic series from AAA to ZZZ
  • 4th character: Represents Status of PAN card holder
  • "P"-Individual
  • "C"-stands for Company
  • "H"-stands for Hindu Undivided Family (HUF)
  • "A"-stands for Association of Persons (AOP)
  • "B"-stands for Body of Individuals (BOI)
  • "G"-stands for Government Agency
  • "J"-stands for Artificial Juridical Person
  • "L"-stands for Local Authority
  • "F"-stands for Firm/ Limited Liability Partnership
  • "T"-stands for Trust
  • 5th character: Represents first letter of PAN holder’s last name i.e. surnameIn Case Of Individual.

Other Than Individualit represents the first letter of PAN holder’s name.

 6th-9th Characters

Represents a sequence of number series from 0001 to 9999.

10th Character

 Represents Alphabetic check digit

Who should obtain PAN?

Historical background of PAN?

Prior to the introduction PAN in 1972, a taxpayer was to be identified using General Index Registration No. (GIR No).It was a manual operating system, unique to individual assessing officer circle which ultimately resulted in errors/miscalculations.

Different forms required?

Form 49A: Indian nationals/Entities incorporated in India

Under section 139A of Income tax act, 1961; Application form 49A is for the allotment of PAN Card for Indian nationals, entity incorporated in India. It is used for applying a new PAN or any modifications submitted previously.

Form 49AA: Foreign citizens

Rule 114 of Income tax act, 1962 requires foreign citizens applying for PAN Card in India by filing form 49AA. It is filled by foreign nationals/entities incorporated outside India but have substantial taxation liability of their activity in India.

Form 60: Individual/person does not have PAN Card but enters into transaction mentioned under Rule 114B.

Documents required?

While applying for a PAN Card, some documents are also required to be attachedForm 49A or Form 49AA or the acknowledgement form (if applying online) for PAN card verification process. Key documents required with the PAN application form when individuals or other entities apply for a PAN card.

For an individual applicant:

Identity Proof

Address proof

  • Electricity/Landline Bill
  • Post-paid mobile phone bill
  • Water bill
  • LPG or piped gas connection bill or Gas Connection book
  • Bank account statement
  • Credit card statement
  • Post Office account Passbook
  • Passport
  • Voter’s ID Card
  • Driving License
  • Property registration document
  • Domicile certificate
  • Aadhar Card
  • Date of birth (DOB) proof
  • Birth certificate by the Municipal Authority/authorized authority
  • Matriculation certificate
  • Pension order
  • Passport
  • Marriage certificate
  • Driving license (DL)
  • Domicile certificate (DC)
  • Affidavit sworn before a magistrate stating the applicant’s date of birth

For a Hindu Undivided Family (HUF)

For a company registered in India

Certificate of Registration issued by the Registrar of Companies (ROC).

For firms and Limited Liability Partnerships (LLP) formed or registered in India

Registration certificate issued by the Registrar of Firms/Limited Liability Partnership (LLP)

For individuals who are not Indian Citizens

Identity Proof

  • Passport copy
  • PIO card photocopy
  • OCI Card photocopy
  • Copy of other national or citizenship Identification Number or TIN attested by applicable ‘Apostille’, Indian Embassy, High Commission or Consulate where the applicant is based.

Address proof

  • Passport copy
  • PIO card photocopy
  • OCI Card photocopy
  • Copy of other national or citizenship Identification Number or TIN attested by relevant  ‘Apostille’, Indian Embassy, High Commission or Consulate
  • Copy of bank statement of the residential country
  • Copy of NRE bank statement in India
  • Copy of resident certificate or Residential permit

Application procedure for PAN Card?

There are two ways of applying for PAN card online.

  1. National Securities depository limited (NSDL): www.tin-nsdl.com
  2. UTI infrastructure technology & services ltd. (UTIITSL): :www.utiitsl.com

OFFLINE PROCESS: Any person who wish to apply for PAN Card, can apply by submitting the Form 49A/49AA along with the required documents & prescribed fees for the same at the NSDL/UTIITSL authorised application centres. Following steps should be followed to get your PAN Offline.

ONLINE PROCESS:Person who wish to apply online for PAN Card could do so by visiting the above mentioned company website and fill the application form for the same. Following steps should be followed to get your PAN Online.

 TRANSACTIONS IN WHICH PAN CARD IS MANDATORY

There are various transactions in which attaching your PAN details is mandatory. These exceptions are specified under Rule 114Bof the Income tax rules, 1962 which came into effect from 01, Nov, 1988.

There are total 18 Transactionsat present which mandatorily require to mention PAN card details which are as follows:-

IMPORTANT POINTS TO REMEMBER

When a person involved in any of the above mentioned transactions, is a MINOR& does not have any income chargeable to income tax, he/she should mention the PAN Card details of father/mother/guardian.

Anyone who does not have a PAN Card and enters into any of the above mentioned transaction, must fill Form No. 60 as per Rule 114B of Income tax act, 1962.

FREQUENTLY ASKED QUESTIONS {FAQ}

Ques. How Can An Individual Apply For PAN Card?

Both online and offline ways are available to apply for PAN card. You can apply for PAN card by visiting any of the two websites and apply. (1) NSDL (2) UTIITSL. By visiting PAN centre and filing it in physical form and submitting it.

Ques. Where Can I Get PAN Application Form?

There are two ways of getting PAN application form. (1) Visiting PAN centre (2) Downloading form 49A (Indian Nationals) & 49AA (Foreign citizens) from NSDL/UTIITSL website.

Ques. Are There Any Charges On PAN Card Application?

If Communication Address Is Within India

Fees for processing application is INR 110 [Application fees 93 + 18% GST]

If Communication Address Is Outside India.

Fees for processing application is INR 1020 [(Application fees 93 + Dispatch charge 770) + 18% GST]

Ques. How To Check Whether Your PAN Card Is Active Or Not?

You can track your application form by visiting any of the mentioned links

(1) https://tin.tin.nsdl.com/pantan/StatusTrack.html

(2)https://www.trackpan.utiitsl.com/PANONLINE/trackApp

Ques. Can A Minor Apply For PAN Card?

Yes, minor can apply for PAN card.

Ques. Is It Necessary To Have PAN?

 Yes, it is necessary to have a PAN for all those individuals who come in the tax bracket and are liable to pay an income tax. One would not be able to file ITR without valid PAN and even the bank accounts not having PAN number attached with them, will be deactivated soon.

Ques. Who Can Apply On Behalf Of A Minor/Mentally Challenged/Wards Of Court?

Under section 160 of Income tax act, 1961, a representative assesse can represent a minor, mentally challenged & wards of court.

Ques. Is It Compulsory To Quote PAN On “Return Of Income”?

Yes, it is mandatory to file PAN number on your income tax return.

Ques. While Relocating From One City To Another Do I Have To Change My PAN?

No, PAN is permanent in nature and remains same even if you relocate within India.

Ques. Can An Individual Hold More Than One PAN Card?

No, an individual cannot hold more than one PAN.

One shall be penalized under section 272B of Income tax act, 1961 for holding more than one PAN.

Doing so may attract a penalty of INR 10,000.

Ques. How To Know Your PAN Details, In Case You Have Lost Your PAN Card/In Any Other Case?

You can visit the Income tax website anytime and by providing your core details like your name/fathers name/date of birth, you can get your PAN details online.

After knowing your PAN you can also submit the request for duplicate PAN Card.