Full Form of PAN – Permanent Account Number
The full form of PAN is Permanent Account Number. Permanent Account Number (PAN) is a computer-based electronic system that assigns a unique 10 digit alphanumeric number being issued by the income tax department, the government of India to various entities and to identify a number of taxpayers in India. PAN consists of both alphabetic and numeric digits.
PAN card comes in a tangible form that the unique Pan Number being allotted including the Name of the entity, DOB, photograph which can be even submitted as proof of identity and for many other regulatory requirements.
Format of PAN Card
The format of the PAN card contains information related to the applicant like name, DOB, as commensurate with the KYC guidelines.
#1 – Card Format
PAN card has the following details:
- Name: Name of the applicant.
- Father’s Name: Name of the applicant’s father.
- DOB: Date of Birth of the applicant, in case of other than individuals the date of registration with the appropriate authority.
- PAN Number: Out of the 10 digit number first 5 characters are alphabetic series out of which the first 3 characters stand from AAA to ZZZ.
#2 – Pan Card Number Format
For example, “ABCPRXXXXC”
Out of 10 digit number of PAN, the fourth character is the indication of the status of PAN number holder.
- ‘P’ represents an Individual
- ‘C’ represents Company
- ‘H’ represents the Hindu Undivided Family (HUF)
- ‘A’ represents the Association of Persons (AOP)
- ‘B’ represent Body of Individuals (BOI)
- ‘G’ represents the Government Agency
- ‘J’ represents Artificial Judicial person
- ‘L’ represents Local Authority
- ‘F’ represents Limited Liability Partnership or Firm
- ‘T’ represents Trusts
5th character of the PAN 10 digit number refers to the first character of the surname or last name of the Individual. For non- individual 5th character represents the first character of the name of PAN cardholder name.
6th to 9th Character
The above highlighted 4 characters are numbers from 0001 to 9999.
The 10th character represents the alphabetic check digit.
Eligibility for PAN Card
The following are the eligibility criteria for owning PAN numbers.
- Individuals: In case of individuals applying for PAN number they should be a citizen of India have valid address and date of birth and ID proof. The proof to substantiate the ID could be a driver’s license, passport, Aadhar card or voters card, etc.
- Hindu Undivided Families: The head of the family who is also known as Karta in case Hindu Undivided Family could apply for PAN number on behalf of other members of the family by providing ID proof such as address proof, date of birth of the members of the HUF.
- Minors: In the case of minors the guardians could apply for the PAN number on their behalf by providing their own ID proofs.
- NRI: In the case of citizens who are living outside India can apply for the PAN number by providing a bank statement of the country in which he/she currently residing as the address proof.
- Corporate: Companies applying for the PAN numbers should be registered with the registrar of companies and should provide the certificate of registration as ID proof.
- Partnerships/Firms: Limited liability firms or partnerships should be registered with the relevant authority to get the PAN number and provide a copy of registration as ID proof.
- AOP: Association of a person registered with appropriate authority can get the PAN number by providing their registration certificate.
- Artificial Judicial Person: Artificial judicial persons can apply for the PAN numbers by providing the relevant registered certificate or documents.
- Trust: Trust can apply for the PAN number by providing the certificate of deed or registered certificate.
Types of PAN
Following are the different types of PAN:
- Hindu Undivided Family (HUF)
- Corporation / Company
- Artificial Judicial Person
- Limited Liability Partnerships/ Firm
- Association of person
Documents Required For PAN Card
The documents are primarily Required for major two reasons to substantiate Proof of Identity and Address proof. The following are the major documents being required on the basis of the type of PAN for which they are applying for the PAN numbers.
Why do we need a PAN Number?
PAN card number is required for various reasons. The following are the major reasons which make the PAN numbers necessary.
- PAN number is required to file an Income Tax return.
- PAN number is required as proof of identity.
- PAN number is required to open any Bank account or depository account.
- To apply a bank loan or any credit card PAN number is an essential requirement.
- To purchase or sale of property having valuation above 5 lakhs PAN number is necessary.
- To shell out a bill above Rs.25,000 PAN number is required.
- PAN number is required if someone is depositing the amount Rs50,000 or above in the Bank account.
- PAN number is also called for to purchase and sale of a car or any other vehicle.
- PAN number is required in case of an investment of Rs50,000 and above.
- PAN number is required in the purchase transaction of jewelry above prescribe limit involving.
How to Apply for PAN Card?
PAN can be applied through online or offline.
- Step 1: Visit the NSDL (National Securities Depository Limited) or UTIITSL website
- Step 2: Fill the required form, submit the same by shelling out the required fee amount.
- Step 3: PAN number will be sent to the applicant at the address provided by him in the application.
- Step 1: Visit the authorized PAN card center to get the required application form.
- Step 2: Fill the required application form and attached the required documents with the form and pay the application fee.
- Step 3: PAN number will be sent to the applicant at the address being provided in the application.
In conclusion, we would like to say that PAN number assists the concerned department particularly the Income Tax department to identify all the transactions being done by the PAN holder. This transaction varies from income tax payments, credit for TDS, return on income, etc.
PAN number enables the authority to extract the information of the PAN number holder and match the transactions like investments, borrowing, and various other business-related transactions.
This has been a guide to the Full form of PAN i.e (Permanent Account Number) and definition. Here we discuss the format of PAN and also learn how to apply for PAN card along with its eligibility criteria, the document required to do so. You may refer to the following articles to learn more about finance –
- Calculate Taxable Income
- What is Income Tax Accounting?
- Meaning of Deferred Income Tax
- What is Earned Income?
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