Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department, to any "person" who applies for it or to whom the department allots the number without an application. PAN enables the department to link all transactions of the "person" with the department. These transactions include tax payments, TDS/TCS credits, returns of income/wealth/gift/FBT, specified transactions, correspondence, and so on. PAN, thus, acts as an identifier for the "person" with the tax department. PAN was introduced to facilitates linking of various documents, including payment of taxes, assessment, tax demand, tax arrears etc. relating to an assessee, to facilitate easy retrieval of information and to facilitate matching of information relating to investment, raising of loans and other business activities of taxpayers collected through various sources, both internal as well as external, for detecting and combating tax evasion and widening of tax base.
A typical PAN is ABZPR7190H.
First three characters i.e. "ABZ" in the above 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. "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. "R" in the above PAN represents first character of the PAN holder's last name/surname.
Next four characters i.e. "7190" in the above PAN are sequential number running from 0001 to 9999.
Last character i.e. "H" in the above PAN is an alphabetic check digit.
It is mandatory to quote PAN on return of income, all correspondence with any income tax authority. From 1 January 2005 it will be 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 :-
The following persons should apply for allotment of PAN in Form 49A-
Please Click Here to download PAN and Tan forms in Excel format and Check the status of your PAN and TAN
The PAN form should be filled in by the assessee with due care and caution. There should be no corrections or overwriting and it should be properly signed and verified by the persons who is authorized to do so, under the provisions of IT Act. The following important points may be taken care of while filling up the form :
Individual : The individual filling his PAN form has to sign it. In case the individual is mentally incapable, then the PAN form may be signed by his Guardian or by any other person competent to sign on his behalf.
Incase the individual is absent from India or because of any other reason, he is not able to sign and verify his PAN form, then any person duly empowered by him through valid Power of Attorney may sign on his behalf. In such case, a certified copy of Power of Attorney must accompany the PAN form.
Hindu Undivided Family : By the Karta or where he is absent from India or he is mentally incapacitated from attending to his affairs, by any other adult member of such family.
Company - Resident : The Managing Director or, where there is no Managing Director or he is not able to sign and verify the PAN form due to any unavoidable reason, by any director thereof.
Company - Non-Resident : The PAN form may be signed and verified by a person holding a valid Power of Attorney from the Non-Resident, which should be attached to the PAN form.
Firm : Managing Partner, or, where there is no Managing Partner or due to some unavoidable reasons, he is not able to sign and verify the PAN form, by any partner thereof, not being a minor.
Local Authority : By the Principal Officer
Association of Persons : By any member of the Association or the Principal Officer thereof.
Presently, the Pan application may be submitted at the UTIISL counters along with the following:
The tamper proof high security PAN card will be issued within 15 days from the date of filing of the application.
There is a Tatkal Scheme under which the PAN card will be issued within 2 days on payment of D.D of Rs. 150/- in case of urgency. To know the position of allotment, one may enquire with PAN query centre or PRO in Income Tax Offices. Further, there is a website available - www.incometaxindia.gov.in.
In case of transfer of an assessee from one Region to another, the fact of transfer has to be informed at the old station with a request for transfer of PAN to the present Region.
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The visitors may visit the web site of Income Tax Department for resolving their doubts or for clarifications.