PAN (Permanent Account Number) is a 10 digit character that contains letters and numbers issued by the IT Department. PAN is issued in the form of a PAN card. Read the full article to know what exactly is PAN and how to apply for PAN card online.
PAN Number: Out of the first 5 characters, the first 3 characters represent the alphabetic series.
The 4th character of the PAN number represents the status of the PAN cardholder. P means Individual C means Company H is for Hindu Undivided Family (HUF) A is for Association of Persons (AOP) B stands for Body of Individuals (BOI) G stands for Government Agency J stands for Artificial Juridical Person L stands for Local Authority F stands for Firm/ Limited Liability Partnership T stands for Trust
5th character of the PAN card represents the first character of the PAN holder’s last name/surname in the case of an individual. In the case of non-individual PAN holders, the fifth character represents the first character of the PAN card holder’s name.
The next 4 characters are sequential numbers running from 0001 to 9999.
The last character, the 10th character is an alphabetic check digit.
PAN enables the department to identify/ link all transactions of the PAN holder with the department.
These transactions include tax payments, TDS/TCS credits, returns of income, specified transactions, correspondence, etc, and so on.
It facilitates easy retrieval of information of PAN holder and matching of various investments, borrowings, and other business activities of PAN holder.
Who has to obtain PAN?
• Every person if his total income or the total income of any other person in respect of which he is assessable during the year exceeds the maximum amount which is not chargeable to tax.
• A charitable trust who is required to furnish return under Section 139(4A).
• Every person who is carrying on any business or profession whose total sale, turnover, or gross receipts are or is likely to exceed five lakh rupees in any year.
• Every person who intends to enter into specified financial transactions in which quoting of PAN is mandatory.
• Every non-individual resident persons and persons associated with them shall apply for PAN if the financial transaction entered into by them during the financial year exceeds Rs. 2,50,000.
Income Tax Department has authorized UTI Infrastructure Technology And Services Limited (UTIITSL) and National Securities Depository Limited (NSDL) to set-up and manage PAN Service Centers.
UTIITSL and NSDL have established PAN Service Centers and TIN Facilitation Centers at various places in major cities of India (hereinafter referred to as PAN application centers of UTIITSL/NSDL).
Thus, a person wishing to obtain PAN can apply for PAN by submitting the PAN application form (Form 49A/49AA) along with the related documents and prescribed fees at the PAN application center of UTIITSL or NSDL.
An online application can also be made from the website of UTIITSL or NSDL.
Individual applicants will have to affix two latest, color photos on the application form.
The prescribed document must be furnished as proof of ‘Identity’ ‘Address’ and ‘Date of Birth’.
Designation and Code of concerned Assessing Officer of the Income Tax Department will have to be mentioned in the PAN application form.
The address, phone numbers, etc., of PAN application centers of UTIITSL or NSDL at which PAN application can be submitted, can be obtained from:
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