PAN or Permanent Account Number is a ten-digit alphanumeric number which is mainly assigned by the Income Tax Department to a taxpayer. PAN number is mandatory for financial transactions like receiving salary, investing money in stock markets, mutual funds, sale, and purchase of assets. The PAN number enables Income Tax Department to link all the transaction to the person who holds the particular PAN card. PAN Card is one of the documents accepted for photo identification of an individual.
History of PAN
PAN was first introduced in 1972. Prior to this, the income tax assessee was allotted a General Index Register Number or GIR number. The PAN introduced in 1972 is now called as the old series and was made statutory in 1976. Till 1985 the PAN numbers were allotted manually before the series was abandoned the same year. The current series was introduced in 1995 after studying the identification number system in various countries including the United States and the United Kingdom.
How to apply for a PAN number
Application for a fresh PAN can be made online through the websites of National Securities Depository Limited (NSDL) . You can also track the status of your application from the
Applicants can apply for a new PAN Card, reprint of existing PAN Card.
Who should have PAN number
According to Income Tax department, salaried persons irrespective of whether they fall under the income tax bracket or not, businessmen with total sale, turnover exceeding Rs 5 lakh, must obtain a PAN number.
Why you should have PAN number
The Income Tax department has made Permanent Account Number (PAN) compulsory for every transaction with the department. PAN is also mandatory for various other financial transactions like opening of bank account, getting loan, foreign travel, dealing in stock market. numerous other financial transactions such as opening of bank accounts, availing of institutional financial credits, purchase of high-end consumer items, foreign travel, transaction of immovable properties, dealing in securities, etc. A PAN card is a valuable means of photo identification accepted by all Government and non-Government institutions in the country.
How to make changes in your PAN Card
Any changes in the PAN Card data can be made through National Securities Depository Limited (NSDL) website .
Similarly, you can request for a reprint of existing PAN card through the above mentioned website.
What if your PAN card is lost
You can apply for a duplicate PAN card if the PAN card is lost. You need to submit a form “Request for New PAN Card or/ and Changes or Correction in PAN Data”. You will also need to submit a FIR along with the form.
If you lose the PAN card and don’t remember the PAN number, you can know your PAN by using “Know Your PAN” provided by the Income Tax Department. This facility can be accessed from the Income Tax Department website – www.incometaxindia.gov.in
Provide details like name, father’s name and date of birth to get you PAN number online and apply for a duplicate PAN card by submitting a request for new PAN card. Similarly you can make corrections in your existing PAN data.
Two PAN cards
It is illegal to have two PAN cards and the person holding two PAN numbers can be imposed a fine of Rs 10000 for having more than one PAN. Any person who has been allotted two PAN cards should surrender the additional PAN card immediately.
Charges
PAN number applicants residing in India need to pay Rs 107 for a new PAN number or for a reprint of existing PAN card. Applicants with foreign communication address need to pay Rs 994. The application fee can be paid through credit/debit card, demand draft or net-banking. After submitting the application online, the applicant needs to send the supporting documents to either NSDL or UTITSL through courier or post. NSDL/UTITSL will process the document only after receiving the documents.
What is the significance of the characters of PAN?
PAN contains ten characters (alphanumeric). The characters are not random. A typical PAN is ABCPD1234E, where the first 5 three characters i.e. “ABC” in the PAN are alphabetic series running from AAA to ZZZ, fourth character of PAN i.e.”P” in the above PAN represents the status of the PAN holder.
THE MEANING OF 10 CHARACTERS IN YOUR PAN CARDABCPD1234ESTATUSSURNAME
OF APPLICANT
Random Alphabetic Series Running from AAA to ZZZP: INDIVIDUAL
C: COMPANY
H: HUF
A: AOP
T: TRUST
Sequential NumberCHECK DIGIT
"P” stands for Individual, “F” stands for Firm, “C” stands for Company, “H” stands for HUF, “A” stands for AOP, “T” stands for TRUST etc. Fifth character i.e. “D” in the above PAN represents first character of the PAN holder’s last name/surname. Next four characters i.e. “1234” in the above PAN are sequential number running from 0001 to 9999. Last character i.e.”E” in the above PAN is an alphabetic check digit. It is useful to check the fourth character and fifth character of your PAN as they represent your status and surname. In case of any discrepancy, it should be immediately brought to the notice of the issuing authority.
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