PAN Card Overview
A permanent Account Number (PAN) is a ten-digit alphanumeric number issued in the form of a laminated card, by the Income Tax Department, to any person who applies for it or to whom the department allots a number without an application.
Structure of PAN Card
PAN CARD structure is as follows: AFZPK7190K First, 5 characters are letters, 4 characters are numbers, and the last character is a letter. Total 10 DIGIT number
First Three characters, i.e., “AFZ” in the above PAN, are alphabetic series running from AAA to ZZZ.
The Fourth character of the PAN, i.e., “P” in the above PAN, represents the status of the PAN holder. “P” stands for Individual.
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Type of assesse:
C — Company
P — Person (Individual)
H — HUF(Hindu Undivided Family)
F — Firm
A — Association of Persons (AOP)
T — AOP (Trust)
B — Body of Individuals (BOI)
L — Local Authority
J — Artificial Juridical Person
G — Government
The Fifth character of the PAN, i.e., “K” in the above PAN, represents the first character of the PAN holder’s last name/surname.
Next, Four characters (6 to 9) “7190“ in the above PAN sequential number running from 0001 to 9999. The Last character, i.e., “K” in the above PAN, is an alphabetic check number.
Is it necessary to have a PAN?
It is mandatory to quote PAN on return of income, all correspondence with any income tax authority, and challans for payments due to the Income Tax Department.
It is also compulsory to quote PAN in all documents about economic or financial transactions notified by the Central Board of Direct Taxes.
Some such transactions are the sale and purchase of immovable property or motor vehicle or payments to hotels for bills or payments in cash in connections with travel to any foreign country exceeding Rs 25,000.
If you receive any income subject to tax deducted at source (TDS), the tax will be deducted at 20% (instead of the standard rate of 1% or 10%) if you do not have a PAN.
Likewise, PAN has to be mentioned for making a time deposit exceeding Rs. 50,000 with a bank or post office or depositing cash of Rs 50,000 in a bank.
It is a statutory responsibility of a person receiving a document relating to economic or financial transactions notified by the CBDT to ensure that PAN has been duly quoted in the document.
All existing assesses or taxpayers, or persons required to furnish a return of income, even on behalf of others, must obtain PAN. Some such persons are Individuals, Companies, Partnership Firms, HUFs, Trusts, or Representative assesses.
Type of Pan Application
There are two types of applications:
1) Application for allotment of PAN (Form 49 A)
This application should be used when the applicant has never applied for a PAN or does not have PAN.
2) Request for a New PAN Card Or/and Changes or Correction in PAN data
This application should be used when PAN has been allotted already to the applicant. Still, a new PAN card is required when data associated with the PAN (e.g., name of applicant/ date of birth/address) is required to be updated in the records of the Income Tax Department.
Document Required for Pan Card
1. 2 recent color passport size photos.
2. Identity Proof : School Leaving Certificate, Ration Card, Passport, Driving Lic., Bank Account statement/Passbook, DP Account statement, Degree of Recognize institution, etc.
3. Address Proof : Ration Card, Electricity Bill, Telephone Bill, Passport, Voter ID, Driving License, Property Tax Assessment order, Rent receipt
How to Fill Application Form
1. Form fill-in BLOCK (CAPITAL) LETTER and Black INK only.
2. Each box, wherever provided, should contain only one character (alphabet/number/ punctuation sign), leaving blank space after each word.
3. Individual applicants should affix two recent color photographs in the space provided on the form. The photograph should not staple or clip. Use clean photographs. The clarity of the image depends upon the quality of the photograph affixed to the form.
4. A signature should be provided across the photo affixed on the left side of the photo.
5. The Signature should be within the box provided on the right side of the form. Don’t cross sign on the right side photo.
6. AO Code (Area code, AO Type, Range Code and AO Number) must be filled up by the applicant. (Search here for your AO Code)
7. Write the complete postal address in the application with the landmark
8. Do mention telephone number/e- mail id in the application.
9. Do mention the correct pin code in the address field.
10. Do not overwrite or make corrections in the application.
11. Do not mention the Husband’s name in the Father’s Name column.
12. Do not write any additional details (date, designation, rank, etc.) along with the signature in the box.
13. You can find out more details on your application form.
Track your PAN Status
You can check the status of your application for new PAN/ Correction in PAN details using 15 digit Acknowledgement number given at the time of Application.