Permanent account number
From EDeskWiki
What is a Permanent Account Number ?
Permanent Account Number (PAN) is a national identification number, issued to all taxpayers of India whose income is taxable. This number is issued by the Income Tax Office.
The Permanent Account Number is a ten-digit alphanumeric number, issued in the form of a computerized plastic card, through Unit Trust of India. PAN card is compulsory for everyone. Even if you don't have any income, you should have a PAN card.
This number is required for many activities such as opening an account, getting a phone line, receiving salary or professional fees. The primary purpose of PAN is to prevent tax evasion by keeping a track of monetary transactions. The PAN is unique, national, and permanent. It is unaffected by a change of address, even betweenn states.
This number can be considered to be similar to Social security number issued in United States to citizens and other legal residents.
For which transactions is it a must to have a PAN number ?
- for opening a bank account
- making payment of income tax
- for sale and purchase of shares and securities
- for purchase of a movable property
- applying for visa, passport, etc
- for a bank loan
- mandatory to quote PAN on return of income
- for obtaining a telephone or cellular telephone connection
Structure and validation
- PAN structure is as follows: AAAAA9999A: First five characters are letters, next 4 numerals, last character letter
- Each deductee is uniquely identified by the PAN
- If the PAN does not follow the above structure, then the PAN will be shown invalid
- The fourth character of the PAN must be one of the following, depending on the type of assessee:
- C — Company
- P — Person
- H — Hindu Undivided Family (HUF)
- F — Firm
- A — Association of Persons (AOP)
- T — AOP (Trust)
- B — Body of Individuals (BOI)
- L — Local Authority
- J — Artificial Juridical Person
- G — Govt
- The fifth character of the PAN is the first character in the surname of the person to whom the PAN belongs.
Usage of PAN Number
You must have your PAN number for the following transactions-
- for opening a bank account
- making payment of income tax
- for sale and purchase of shares and securities
- for purchase of a movable property
- applying for visa, passport, etc
- for a bank loan
- mandatory to quote PAN on return of income
- for obtaining a telephone or cellular telephone connection
Application Dates
If you are a salaried individual, the date is July 31.
If you are under the One-By-Six scheme, it is October 31.
Who must have a PAN Card
- an Income Tax Payer
- a person carrying on business or profession whose total sales or turnover or gross receipt exceeded Rs. 5 lakhs,
- a trust
- Any other person
Contents of the PAN card
- For Individuals:
- PAN
- Name
- Date of Birth
- Father's Name
- Photograph and Signature of PAN holder
- Other Taxpayers
- PAN
- Name and
- Date of Incorporation or Formation
Where to apply for PAN Card
Income Tax department has authorized UTI Investor Services Ltd (UTIISL) to set up and manage IT PAN Service Centers in all cities or towns where there is an Income Tax office and National Securities Depository Limited (NSDL) to dispense PAN services from TIN Facilitation Centers. For convenience of PAN applicants in big cities, UTIISL has set up more than one IT PAN Service Center and likewise there are more than one TIN Facilitation Centers.
How do I get a PAN allotted quickly
If an application for allotment of PAN is submitted through Internet and payment made through a 'nominated' credit card, the PAN is allotted on priority and communicated through email.
What documents and information have to be submitted
The following documents and information have to be submitted along with the application for Form 49A.
- Individual applicants will have to affix one recent, coloured photograph (Stamp Size:3.5 cms x 2.5 cms) on Form 49A;
- Any one document listed in Rule 114 must be supplied as proof of 'Identity' and 'Address'; and
- Designation and code of the concerned Assessing Officer of Income Tax department will have to be mentioned in Form 49A.
Which documents will serve as proof of 'Identity'
- Copy of school leaving certificate or matriculation certificate or
- degree of a recognized educational institution or
- depository account or
- credit card bill or
- bank account or
- water bill or
- ration card or
- property tax assessment order or
- passport or
- voter identity card or
- driving license or
- certificate of identity signed by a MP or an MLA or a Municipal Councilor or a Gazetted Officer;
In case the PAN applicant is a minor, any of above documents of any of the parents or guardian of such minor shall serve as proof of Identity;
In case PAN application is made on behalf of a HUF, any of above documents in respect of Karta of the HUF will serve as proof of Identity.
What is proof of 'Address'
- Copy of electricity bill or
- telephone bill or
- depository account or
- credit card or
- bank account or
- ration card or
- employer certificate or
- passport or
- voter identity card or
- property tax assessment order or
- driving license or
- rent receipt or
- certificate of address signed by a MP/ MLA/Municipal Councilor / a Gazetted Officer;
In case the PAN applicant is a minor, any of above documents of any of the parents or guardian of such minor shall serve as proof of Address;
In case PAN application is made on behalf of a HUF, any of above documents in respect of Karta of the HUF will serve as proof of Address.
See also
- Taxation in India
- Income tax in India
- Permanent account number for Income tax in India
- Income tax in India for Individuals
- Income tax in India for Partnership Firms
- Income tax in India for Corporates
- Income tax in India for Hindu Undivided Families _ HUFs
- TDS Tax Deducted at Source Indian Income Tax
- My eTax Profile.
- Capital Account
- Capital gain
- Capital gains tax
- Stt on capital Gains
- Capital Gains (India)
- Advance Income tax in India
- Guide to filing tax returns
- Income Tax FAQs
- Income tax in India
