Permanent Account Number or PAN is a means of identifying various taxpayers in the country. PAN is a unique identification number assigned to Indians, mostly to those who pay tax. The PAN system of identification is a computer-based system that assigns a unique identification number to every Indian tax paying entity. Through this method, all tax related information for a person is recorded against a single PAN number which acts as the primary key for storage of information. This is shared across the country and hence no two people on tax paying entities can have the same PAN.
The idea behind PAN is similar to the Social Security Number or SSN used in the United States. SSN in the US is a unique nine-digit number issued to all citizens of the US, permanent and temporary both. Although the primary aim of SSN creation was to track individuals for social security purposes, it has now become a primary identification number for taxation processes.
Any PAN issued is valid for the entire lifetime of the PAN holder. This is so majorly because PAN is unaffected by any change of address of the PAN cardholder.
How To Apply For Pan Card Online -
If you have an Aadhar card or any Other Govt. Id Date Of Birth & Address Proof then you can apply for a new PAN card.
For this, you have to just enter your Personal Information in Online Application Form. You can Check Below Links For More Detail Information on How to apply for Pan Card online.
Apply For Pan Card online
How To Check Pan Card Status Online -
If you applied for a new pan card through NSDL or UTI then you can check your Pan card details with the help of Acknowledgement number which is given to you at the time of PAN card apply.
How To Check Pan Card Status
Track Your Pan Card Online
It is very easy to track PAN card status online with the help of Acknowledgement number and Application coupon number.
Click To Track Pan Card
Online Pan Card Verification
Online PAN Bulk Verification application is available for Organizations with categories as approved by Income Tax Department.Given below is a list of all the individuals and groups who are eligible for Online PAN Card verification.
Check Here To Verify Pan Card
Change or Correction in Pan Card
If you want to change, correct or update PAN card details then you have to check below post procedure To Update it Online from pan card site.
Click To Change Update Pan Card Data
Pan Card HelpDesk Enquiry
Income Tax Pan Services Unit (NSDL e-Governance)and UT Infrastructure Technology Services Limited (UTIITSL) which issue PAN card facilities to all individuals of India.
Check Here For Pan Help Enquiry Contact Details
Pan Card Letters Meaning
Permanent Account Number is effective because of its uniqueness. It is an interesting thing to learn about the structuring of PAN. There is a lot of hidden information that goes into the making of the Permanent Account Number.
PAN is generated automatically by the online system by taking into account the information furnished by the PAN applicant.
- First Three CharactersThe first three characters of PAN are a sequence of alphabets from AAA to ZZZ
- Fourth CharacterThe fourth character signifies the type of taxpayer that you are.
- 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 Judicial Person
- P — Individual
- T — AOP (Trust)
- K — Krish (Trust krish)
So if an individual obtains PAN, his/her PAN will have the fourth character as ‘P’ which stands for an individual taxpayer.
- Fifth CharacterThe fifth character in PAN is the first letter of your surname. So, if a person is named ‘Rajesh Khanna’, the fifth character of his PAN will be ‘K’
- Last Character
PAN Cards Types
The Income-tax Department has mandated that all tax paying entities register and possess a PAN card. While this applies to individuals, companies, partnership firms, NGO’s as well as foreign firms also come under the purview of this directive.
As a result, PAN cards are issued for individuals as well as companies.
PAN Card for Individuals
A PAN card for individuals is used to keep track and link all financial transactions that attract tax, with the IT department calculating the total taxable amount due on the basis of this data.
PAN Card for Companies
A PAN card for organizations is similar to that for individuals, with the exception that there is no photograph on the physical PAN card. Also in lieu of the date of birth mentioned on individual PAN cards, the date of registration of the company/organization is mentioned.
PAN for foreign citizens in India
All foreign citizens who wish to carry out business in India are required to obtain PAN. The procedure for doing so is same as applicable to resident Indians. However, the application form for foreigners is formed 49AA. All entities that are eligible to obtain PAN as Indian citizens are also eligible to obtain PAN as foreign citizens. This list includes entities like HUFs, individuals, trusts and so on.
The IT Department calculates the amount of tax the company/organization is required to pay through its various transactions, all of which now require quoting the PAN card.
Importance Of Pan Card
A PAN card is a document that no taxpayer can do without. Besides being compulsory in order to file your Income Tax returns and to receive a tax refund, a PAN card also serves an accepted proof of identity and has now been made mandatory for a number of transactions of both a business as well as a personal nature. A comprehensive list of the various activities that require a PAN card to complete or authenticate the activity are mentioned below:
Pan Card Uses
- PAN needs to be quoted while paying direct taxes
- While registering a business, PAN information needs to be mandatorily furnished
- Taxpayers need to input their PAN when paying income tax
- A lot of financial transactions require PAN information. Some of these transactions are:
- Sale or purchase of property (immovable) which is valued at Rs.5 lakh or above
- Sale or purchase of a vehicle except for a two-wheeler
- Payments that are made towards hotels and restaurants and which are above Rs.25,000
- Payments made in connection with travel requirements to other countries. The amount in this case if it exceeds Rs.25,000, then an individual needs to quote his/her PAN
- Making payments of more than Rs.50,000 towards bank deposits in a bank
- Acquiring bonds by paying an amount equal to or greater than Rs.50,000
- Payments made for more than Rs.5 lakhs towards purchase of jewelry and bullion also require PAN information of the purchaser to be furnished
- Any purchase of mutual fund schemes
- Any amount greater than Rs,50,000 used towards purchasing shares
- Any payment of more than Rs.50,000 made towards acquiring an insurance policy needs PAN information of the policyholder
- To Remit money out of India
- Pan information is required for transfer of funds from NRE to NRO account
Benefits Of Pan Card
- Since PAN card contains information like Name, Age, and photograph, it can be used throughout the country as a valid identity proof
- PAN is the best possible way to keep track of your tax payment. Otherwise, you might be required to pay it multiples times since your tax payment cannot be verified
- Since PAN is unique for every entity and hence, misuse of the same is almost impossible for purposes of tax evasion etc.
- PAN card can be used as a document that is required to avail connections like electricity, telephone, LPG, and internet.
- PAN is a unique identification number assigned to taxpayers and hence it is used to track all financial information like payment of taxes, investments made and debt liability of an entity, to a single customer.
Who Can Apply For Pan Card ?
PAN is allotted to people who fall under any of the following categories.
Under section 139A of the Income Tax Act, following are the taxpaying entities that are required to have a Permanent Account Number:
- Any person who has paid tax or is liable to pay tax to the Income Tax Department
- Any person who is carrying out a business or professional practice which earns him a yearly turnover of Rs,5,00,000 or more in the previous year of assessment
- All kinds of trusts in the country
- Importers and exporters who are liable to pay any form of tax or duty charges as per the Income Tax Act or as per any other law, currently in force
PAN is supposed to be applied for by all tax paying entities including individuals, HUFs, partnerships, companies, the body of individuals, trusts etc. Also, PAN is furnished by the Income Tax Department for other similar entities like minors, judicial persons, firms, Krish etc. Also.
At the time of allotment of PAN to an entity, PAN card too is furnished by the Income Tax Department. While PAN is a unique identification number, PAN card is a physical card that has your PAN details as well as name, age and photograph. Copies of this card are submitted by entities for various transactions when required.
What Happens If I Don’t Have a PAN Card?
If your income falls into a taxable bracket, not having a PAN card would result in:
You paying a flat 30% tax on your earnings and wealth, as stipulated by the Income Tax Department of India. This rule applies to individuals, companies and all entities eligible for tax, including foreign nationals and firms registered outside India.
Not having a PAN card will mean you will be unable to purchase a motor vehicle, buy immovable property worth over Rs. 10 lakh, and open an account with any bank in the country among other activities.
Businesses too will be charged TDS at a flat 30% and will be unable to conduct a large chunk of their activities since quoting PAN has now become mandatory for everything from purchasing land in India to rendering any sort of professional services in the country.
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