Permanent account number

 

A permanent account number (PAN) is a ten-character alphanumeric identifier, given as a covered "PAN card", by the Indian Income Tax Department, to any "individual" who applies for it or to whom the department allocates the number without an application. It can likewise be gotten as a PDF file.

A PAN is a unique identifier issued to all judicial units recognizable under the Indian Income Tax Act, 1961. The income tax PAN and its connected card are issued under Section 139A of the Income Tax Act. It is issued by the Indian Income Tax Department under the management of the Central Board for Direct Taxes (CBDT) and it likewise fills in as a significant proof of identification.

It is likewise issued to foreign nationals (like investors) subject to a valid visa, and subsequently a PAN card isn't adequate as evidence of Indian citizenship. A PAN is vital for filing income tax returns.

 

Structure of PAN

The PAN (or PAN number) is a ten-character long alpha-numeric distinctive identifier.

The PAN structure is as per the following: Fourth character [P — Individual or Person] Example: AAAPZ1234C

  • The initial five characters are letters (in uppercase by default), followed by four numerals, and the last (tenth) character is a letter.
  • The initial three characters of the code are three letters forming a sequence of alphabets letters from AAA to ZZZ
  • The fourth character distinguishes the sort of holder of the card. Every holder type is particularly characterized by a letter from the rundown underneath:

 

A — Association of persons (AOP)

B — Body of individuals (BOI)

C — Company

F — Firm

G — Government

H — HUF (Hindu undivided family)

L — Local authority

J — Artificial juridical person

P — Person (Individual)

T — Trust (AOP)

 

  • The fifth character of the PAN is the first character of either:
    • of the surname or last name of the individual, on account of a " personal " PAN card, where the fourth character  is "P" or
    • of the name of the entity, trust, society, or organisation in the case of a company/HUF/firm/AOP/trust/BOI/local authority/artificial judicial person/government, where the fourth character is "C", "H", "F", "A", "T", "B", "L", "J", "G".
  • The last (10th) character is an alphabetic digit utilized as a check-sum to check the viability of that current code.

 

Provisions

Lately, the DOI (date of issue) of the PAN card is referenced at the right (vertical) hand side of the photograph on the PAN card whenever issued by NSDL and won't be referenced whenever issued by UTI-TSL.

The focal government has presented another online service called "Know Your PAN", to for realizing your PAN number, verify your PAN for new and existing PAN numbers.

Inability to follow the provisions of Section 139A of Income Tax Act, a punishment of ₹10,000/ - for each default is payable u/s.272B to the assessing officer.

 

Uses of PAN

The main role of the PAN is to carry a universal identification to every monetary transactions and to forestall tax evasion by monitoring money related transactions, particularly those of high- net-worth people who can affect the economy.

Citing the PAN is obligatory when filing income tax returns, tax deduction at source, or some other correspondence with the Income Tax Department. PAN is additionally consistently turning into an obligatory document  for opening a  new bank account, a demat account, another landline phone connection  /a cell phone connection , acquisition of foreign  cash, bank deposits  above ₹50,000, buy and offer of immovable properties, vehicles and so on

 

Obtaining a PAN

Getting a PAN might be elective or discretionary like passport, driving license, Aadhaar and so forth. In any case, its utilization is obligatory at required spots, similar to PAN for high-esteem monetary transactions, driving license for motor driving, passport for foreign travel and so forth.

One can apply for PAN by submitting the prescribed PAN application to the authorized PAN agency of the district or through online submission to NSDL Website, UTI alongside 2 recent passport colour photos, proof of ID, Address and Date of Birth and charge. If there should arise an occurrence of re-print (re-issue), a copy of the old PAN is additionally required. It requires around 10–15 days to get the card.

A client with an Aadhaar card can likewise submit e-KYC.

 

Prescribed PAN application forms

 There are two sorts of PAN applications:

  1. Application for allotment of PAN: This application ought to be utilized when the candidate has never applied for a PAN or doesn't have PAN allotted  to him.

FORM 49AA: - To be filled by foreign citizens.

  1. Application for new PAN Card or/and Changes or Corrections in PAN Data: - Those who have effectively gotten the PAN and wish to acquire the new PAN card or need to roll out certain changes/corrections in their PAN information, are needed to submit  their applications in the accompanying form  recommended by ITD:

'REQUEST FOR NEW PAN CARD OR/AND CHANGES OR CORRECTION IN PAN DATA’: - a similar form (49A/49AA) can be utilized by Indian just as foreign citizens. Another PAN card bearing a similar PAN yet updated data is issued to the candidate, in such a case.

  1. Pan allotment based on Aadhar is free of cost. Pan pdf will be produced and issued to candidate. This is simple and paperless interaction. Get pan inside 10 minutes. It holds same worth as Physical pan card.

Pan card allocated date can be checked from official site of UTI.

Operating model

The issuance of PAN, verification, conveyance and upkeep deals with public-private partnership  (PPP) model like Passport Seva Kendra (PSK) for reasons of economy, efficiency, and effectiveness.  The reputed units like NSDL e-Governance Infrastructure Limited (once National Securities Depository Limited) and UTI Infrastructure Technology Services Limited (UTIITSL) has been entrusted by Income Tax Department as overseen service providers for processing of applications, collecting, handling and verifying personal documents like proof of ID, age and address, clarification with the applicants, printing the card and the letter and afterward mailing it. The processing agencies get the new PAN number online from the server  of the income tax department  after fruitful processing of the application documents. A few critics  in India might call the handling, processing, and delivery of personal ID and financial documents  by private workers for hire as an infringement of privacy.

NSDL e-Gov centres can be situated at TIN website. It is currently extremely simple to apply online utilizing Aadhaar based eSignature at NSDL e-Gov's site. One can register first at NSDL e-Gov's site. After registration, the candidate gets a token number. One can proceed with filling form. The candidate can save the subtleties and complete the form whenever the timing is ideal by logging utilizing his/her registered subtleties. One can upload photograph /signature and supporting documents lastly eSign the application utilizing Aadhaar and OTP. After successful eSign one can download and save copy of the signed form for his reference. An acknowledgement receipt and form is additionally gotten through email at registered email ID.

UTIITSL centres can be situated at its site.