This number is almost mandatory for financial transactions such as opening a bank account, receiving taxable salary or professional fees, sale or purchase of assets above specified limits etc.
The PAN is unique, national, and permanent. It is unaffected by a change of address, even between states.
Permanent Account Number (PAN) is a Ten-Digit alphanumeric number. PAN structure is as follows:
The first three letters are sequence of alphabets from AAA to ZZZ.
The fourth character informs about the type of holder:
C — Company
P — Person
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 is the first character of the surname / last name of the person, in the case of a “Personal” PAN card or of the name of the Entity/ Trust/ Society/ Organisation in the case of Company/ HUF/ Firm/ AOP/ BOI/ Local Authority/ Artificial Jurdical Person/ Govt.
The last character is a alphabetic check digit.
Who must have a PAN?
All existing assesses or taxpayers or persons who are required to furnish a return of income, even on behalf of others, must obtain PAN.
Any person, who intends to enter into economic or financial transactions where quoting PAN is mandatory, must also obtain PAN.
Why is it Necessary to have PAN?
It is mandatory to quote PAN on return of income, all correspondence with any income tax authority. From 1 January 2005 it is mandatory to quote PAN on challans for any payments due to Income Tax Department.
It is also compulsory to quote PAN in all documents pertaining to the following financial transactions :-
(a) sale or purchase of any immovable property valued at five lakh rupees or more;
(b) sale or purchase of a motor vehicle
(c) a time deposit, exceeding fifty thousand rupees, with a banking company ;
(d) a deposit, exceeding fifty thousand rupees, in any account with Post Office Savings Bank;
(e) a contract of a value exceeding one lakh rupees for sale or purchase of securities;
(f) opening a bank account;
(g) making an application for installation of a telephone connection (including a cellular telephone connection);
(h) payment to hotels and restaurants against their bills for an amount exceeding twenty-five thousand rupees at any one time ;
(i) payment in cash for purchase of bank drafts or pay orders or banker’s cheques for an amount aggregating fifty thousand rupees or more during any one day;
(j) deposit in cash aggregating fifty thousand rupees or more with a bank during any one day;
(k) payment in cash in connection with travel to any foreign country of an amount exceeding twenty-five thousand rupees at any one time.
Where to apply for PAN?
In order to improve PAN related services, the Income Tax department has authorized UTI Infrastructure Technology And Services Ltd (UTIITSL) to set up and manage IT PAN Service Centers in all cities & towns where there is an Income Tax office. For convenience of PAN applicants in big cities, IT Dept. has set up more than one IT PAN Service Center.
Know your PAN card:
One can at anytime check his PAN card online : CLICK
Track your PAN Online:
One can track his PAN status online 24 hr’s after submission of form:
Frequently Asked Questions:
Is father’s name compulsory for female (including married/divorced/widow) applicants?
Only father’s name is required to be filled in the PAN application (Form 49A). Female applicants, irrespective of marital status, should also write only father’s name in the PAN application.
Who can apply on behalf of non-resident, minor, lunatic, idiot, and court of wards?
Section 160 of IT Act, 1961 provides that a non-resident, a minor, lunatic, idiot, and court of wards and such other persons may be represented through a Representative Assessee. In such cases, application for PAN will be made by the Representative Assessee.
Do you need to apply for a PAN when you move or transferred from one city to another?
Permanent Account Number (PAN), as the name suggests, is a permanent number and does not change; Changing the address or city, though, may change the Assessing Officer. Such changes must, therefore, be intimated to nearest IT PAN Service Center for required corrections in PAN databases of the Income Tax department.
Can a person obtain or use more than one PAN?
No, obtaining more than one PAN is against the law.