PAN is the acronym for the Permanent Account Number. It is a unique 10 digit alphanumeric identification number that is issued by the Indian Income-tax department.

A PAN card is issued to all the taxpayers whether individuals, firms, companies, and others. PAN is the electronic number that stores all the tax-related information of the taxpayer and accordingly, no two entities can have the same PAN.

The PAN card contains your name, date of birth, photograph and unique 10 digit value. It has no expiry date and is valid for lifetime.

Let’s know about PAN card and how to apply it.

sharda-associates-pan-card

Types of PAN card

  1. Individual
  2. Hindu undivided family (HUF)
  3. Company
  4. Firms/Partnerships
  5. Trusts
  6. Society
  7. Foreigners

Details contained by PAN Card are:

  1. Name of the cardholder
  2. Name of the father of the cardholder
  3. Date of birth 
  4. Signature of the individual
  5. Photograph of the individual – PAN acts as a photo identity proof for the individual. However, In case of companies, firms and other assessees, PAN Card does not have any photograph.
  6. PAN Number –

PAN Card Structure – PAN is a 10 digit alphanumeric number which has been arranged in a specific manner for various taxpayers.

  • The first three letters – are purely alphabetical in nature and contain any three-letter of the alphabet from A to Z.
  • The fourth letter – this represents the category of the taxpayer which are as follows:
  • A – Association of Persons
  • B – Body of Individuals
  • C – Company
  • F – Firms
  • G – Government
  • H – Hindu Undivided Family
  • L – Local Authority
  • J – Artificial Judicial Person
  • P – Individual
  • T – Association of Persons for a Trust
  • The fifth letter – the fifth letter is the first letter of the individual’s surname or in case of companies/firms/other assessees, the first letter of their name.
  • Remaining letters/numbers – remaining random characters which are specifically arranged – The first 4 characters are numbers while the last one is an alphabet.

Is PAN card mandatory?

PAN is used by the government to track tax evasion and black money. A valid PAN card is also needed for the following cases:

  • For opening a bank account.
  • Buying or selling a vehicle
  • Applying for  payment card – credit or debit card
  • While opening Demat account
  • If your payment exceeds 50,000 in cash to hotels or restaurant
  • Paying cash of more than 50,000 to a foreign country or purchase of foreign currency
  • Investing more than 50,000 in mutual funds, debentures, etc.
  • Depositing cash more than 50000 in a bank in a single day
  • Cash Payment of more than 50000 for purchase of bank draft or pay order or bankers cheques from any financial institution.
  • If the fixed deposit amount exceeds 50,000 or a total of more than 5 lakh during a financial year.
  • Paying more than 50000 in a year as insurance premium
  • Buying or selling of securities exceeding 1 lakh per transaction (not shares)
  • Buying or selling shares of more than 1 lakh that is not listed in stock exchange.
  • Sale or purchase of immovable property of more than 10 lakh.
  • Purchase or selling of any goods above 2 lakh per transaction.

How to enroll for PAN

You can enroll for PAN either through online mode or offline mode. Through Online mode, you can enroll through NSDL or UTIITSL website, and in offline mode, you can visit an authorized PAN Centre and fill the application.

Dos for Filling up PAN Form

  • Use a capital letter to fill forms
  • A recent color photo should be used
  • Signature/thumb impression should be inside the box
  • AO code is provided in the application
  • Make sure all the necessary documents are attached
  • Double-check your address
  • Give only the working email id and phone number

Don’ts for Filling up PAN Form

  • No overwriting and spelling mistakes
  • The photo should not be damaged or stapled
  • Signature or thumbprint outside the box
  • Double-check your name and details
  • Make sure that you don’t apply for another PAN card, it is illegal and you will end up paying fine or imprisonment

Recover Lost PAN Card?

Don’t worry if you lost your PAN card, you can apply for the duplicate card through online or offline mode. For this, you will have to fill Form 49A if you are an Indian citizen or 49AA for foreign citizens. It will take around 45 working days so be patient.

How to edit PAN details?

You can change or update PAN details by visiting there a website or offline. A copy of the necessary documents will be required.

How long it takes to get a PAN card

Getting a physical copy of the PAN applied through Online or Offline mode usually takes around 30 working days. However, now as per the government’s initiative of e-PAN, you can get your e-PAN within few minutes.

If you are having any doubt regarding PAN card or if you wish to get your PAN Card, please feel free to contact us.