PERMANENT ACCOUNT NUMBER (PAN)
WHAT IS PAN?
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
Question: Is it any meaning of these Ten Digits?
Ans: - Your answer is as follows with the help of a PAN No.
AEZPK7190K
First three characters i.e. “AEZ” 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. “K” 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. “K” in the above PAN is an alphabetic check digit.
WHY IS IT NECESSARY TO HAVE PAN?
It is mandatory to quote PAN on return of income, all correspondence with any income tax authority. From 1 January 2005 it has been 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:-
(a) Sale or purchase of any immovable property valued at five lakh rupees or more;
(b) Sale or purchase of a motor vehicle or vehicle, [the sale or purchase of a motor vehicle or vehicle does not include two wheeled vehicles, inclusive of any detachable side-car having an extra wheel, attached to the motor vehicle;]
(c) A time deposit, exceeding fifty thousand rupees, with a banking company ;
(d) A deposit, exceeding fifty thousand rupees, in any account with Post Office Savings Bank;
(e) A contract of a value exceeding one lakh rupees for sale or purchase of securities;
(f) Opening a bank account;
(g) Making an application for installation of a telephone connection (including a cellular telephone connection);
(h) Payment to hotels and restaurants against their bills for an amount exceeding twenty-five thousand rupees at any one time ;
(i) Payment in cash for purchase of bank drafts or pay orders or banker’s cheques for an amount aggregating fifty thousand rupees or more during any one day;
(j) Deposit in cash aggregating fifty thousand rupees or more with a bank during any one day;
(k) Payment in cash in connection with travel to any foreign country of an amount exceeding twenty-five thousand rupees at any one time.
PAN Card Requirements
For Individuals
a) Individual applicants should provide proof of residential address.
b) If the applicant is a minor (i.e. below 18 years of age at the time of application), any of the documents as per the lists specified below of any of the parents/ guardian of such minor shall be deemed to be the proof of identity and address of the applicant.
1. Citizen of India located in India at the time of application for PAN
I.Proof of Identity
(a) School leaving certificate(b) Matriculation certificate(c) Degree of a recognized educational institution(d) Depository account statement(e) Credit card statement(f) Bank account statement/ bank pass book(g) Water bill(h) Ration card(i) Property tax assessment order(j) Passport(k) Voters Identity Card(l) Driving License(m) Certificate of identity signed by Member of Parliament or Member of Legislative Assembly or Municipal Councilor or Gazetted Officer.
II.Proof Of Address
(a) Electricity bill(b) Telephone bill(c) Depository account statement (d) Credit card statement(e) Bank account statement/bank pass book(F) Rent receipt(G) Employer certificate(h) Passport(i) Voters Identity card(j) Property tax assessment order(h) Driving License(i) Ration card(j) Certificate of address signed by Member of Parliament or Member of Legislative Assembly or Municipal Councilor or Gazetted Officer
2. Citizen of India located outside India at the time of application for PAN
I.Proof of Identity
(a) Copy of passport II.Proof Of Address(a) Copy of bank account statement in country of residence (b) Copy of NRE bank account statement
3. Foreign Citizen located in India at the time of application for PAN
I.Proof of Identity(a) Copy of passport (b) Copy of Person of Indian Origin (PIO) card issued by Government of IndiaII.Proof Of Address (a) Copy of passport (b) Copy of bank account statement in India (c) Residential permit issued by the State Police Authorities (d) Registration certificate issued by the Foreigner's Registration Officer (e) Copy of Person of Indian Origin(PIO) card issued by Government of India (f) Copy of NRE bank account statement (g) Copy of Visa application to Indian authorities and Copy of Visa granted and Copy of appointment letter/contract from Indian Company and Certificate (in original) of Indian address issued by employer (*** The certificate should be on employer's letterhead mentioning PAN of the employer. Copy of PAN card for the PAN mentioned in the employer's certificate should be submitted)Note: If the applicant has provided an Indian office address, then all the following five documents are mandatory along with any of the first six above mentioned documents:-
Copy of Visa application to Indian authorities and
4. Foreign Citizen located outside India at the time of application for PAN
I.Proof of Identity(a) Copy of passport (b) Copy of other National ID attested by Indian Embassy/Consulate/High Commission/ Apostille (c) Copy of Person of Indian Origin(PIO)card issued by Government of India II.Proof Of Address(a) Copy of passport (b) Copy of other National ID attested by Indian Embassy/Consulate/High Commission/Apostille (c) Copy of bank account statement in country of residence, duly attested by Indian Embassy/High Commission/Consulate/Apostille in the country where applicant is located (d) Copy of Person of Indian Origin (PIO) card issued by Government of India (e) Copy of NRE bank account statement (** showing at least two customer induced transactions in last six months period and duly attested by Indian Embassy / Consular office / Highcommission or postille or by the manager of the bank in which the account is held. The applicant may be a joint holder.For Categories other than Individuals
i.e. Firm, BOI, HUF, AOP, AOP(Trust), Local Authority, Company, Artificial Juridical Person
1. Having office of their own in India
Proof of Identity and Address HUF: Any document prescribed in the case of individuals in respect of Karta of the HUF. Company: Copy of Certificate of Registration issued by Registrar of Companies Firms: Copy of Certificate of Registration issued by Registrar of Firms or Copy of Partnership Deed. AOP (Trusts): Copy of Trust Deed or Copy of Certificate of Registration issued by Charity Commissioner. AOP/BOI/Local Authority/Artificial Juridical Person: Copy of Agreement or Copy of Certificate of Registration issued by Charity Commissioner or registrar of Co-operative Society or any other Competent Authority or any other document originating from any Central or State Government Department establishing identity and address of such person.2. Having no office of their own in India
Proof of Identity and Address (a) Copy of registration certificate of the respective country duly attested by Indian Embassy/ Consulate/ High Commission/ Apostille in the country where applicant is located.(b) Copy of certificate of registration with the competent authority in India (c) Copy of approval issued by the competent authority in India (d) Copy of the accompanying documents alongwith the approval issued by competent authority in India (e) Copy of the application (duly acknowledged) made by the applicant before the competent authority in India
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
Question: Is it any meaning of these Ten Digits?
Ans: - Your answer is as follows with the help of a PAN No.
AEZPK7190K
First three characters i.e. “AEZ” 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. “K” 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. “K” in the above PAN is an alphabetic check digit.
WHY IS IT NECESSARY TO HAVE PAN?
It is mandatory to quote PAN on return of income, all correspondence with any income tax authority. From 1 January 2005 it has been 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:-
(a) Sale or purchase of any immovable property valued at five lakh rupees or more;
(b) Sale or purchase of a motor vehicle or vehicle, [the sale or purchase of a motor vehicle or vehicle does not include two wheeled vehicles, inclusive of any detachable side-car having an extra wheel, attached to the motor vehicle;]
(c) A time deposit, exceeding fifty thousand rupees, with a banking company ;
(d) A deposit, exceeding fifty thousand rupees, in any account with Post Office Savings Bank;
(e) A contract of a value exceeding one lakh rupees for sale or purchase of securities;
(f) Opening a bank account;
(g) Making an application for installation of a telephone connection (including a cellular telephone connection);
(h) Payment to hotels and restaurants against their bills for an amount exceeding twenty-five thousand rupees at any one time ;
(i) Payment in cash for purchase of bank drafts or pay orders or banker’s cheques for an amount aggregating fifty thousand rupees or more during any one day;
(j) Deposit in cash aggregating fifty thousand rupees or more with a bank during any one day;
(k) Payment in cash in connection with travel to any foreign country of an amount exceeding twenty-five thousand rupees at any one time.
PAN Card Requirements
For Individuals
a) Individual applicants should provide proof of residential address.
b) If the applicant is a minor (i.e. below 18 years of age at the time of application), any of the documents as per the lists specified below of any of the parents/ guardian of such minor shall be deemed to be the proof of identity and address of the applicant.
1. Citizen of India located in India at the time of application for PAN
I.Proof of Identity
(a) School leaving certificate(b) Matriculation certificate(c) Degree of a recognized educational institution(d) Depository account statement(e) Credit card statement(f) Bank account statement/ bank pass book(g) Water bill(h) Ration card(i) Property tax assessment order(j) Passport(k) Voters Identity Card(l) Driving License(m) Certificate of identity signed by Member of Parliament or Member of Legislative Assembly or Municipal Councilor or Gazetted Officer.
II.Proof Of Address
(a) Electricity bill(b) Telephone bill(c) Depository account statement (d) Credit card statement(e) Bank account statement/bank pass book(F) Rent receipt(G) Employer certificate(h) Passport(i) Voters Identity card(j) Property tax assessment order(h) Driving License(i) Ration card(j) Certificate of address signed by Member of Parliament or Member of Legislative Assembly or Municipal Councilor or Gazetted Officer
2. Citizen of India located outside India at the time of application for PAN
I.Proof of Identity
(a) Copy of passport II.Proof Of Address(a) Copy of bank account statement in country of residence (b) Copy of NRE bank account statement
3. Foreign Citizen located in India at the time of application for PAN
I.Proof of Identity(a) Copy of passport (b) Copy of Person of Indian Origin (PIO) card issued by Government of IndiaII.Proof Of Address (a) Copy of passport (b) Copy of bank account statement in India (c) Residential permit issued by the State Police Authorities (d) Registration certificate issued by the Foreigner's Registration Officer (e) Copy of Person of Indian Origin(PIO) card issued by Government of India (f) Copy of NRE bank account statement (g) Copy of Visa application to Indian authorities and Copy of Visa granted and Copy of appointment letter/contract from Indian Company and Certificate (in original) of Indian address issued by employer (*** The certificate should be on employer's letterhead mentioning PAN of the employer. Copy of PAN card for the PAN mentioned in the employer's certificate should be submitted)Note: If the applicant has provided an Indian office address, then all the following five documents are mandatory along with any of the first six above mentioned documents:-
Copy of Visa application to Indian authorities and
- Copy of Visa granted and
- Copy of appointment letter/contract from Indian Company and
- Certificate (in original) of address in India of applicant issued by authorized signatory of employer on employer's letter head mentioning the PAN of the employer.
4. Foreign Citizen located outside India at the time of application for PAN
I.Proof of Identity(a) Copy of passport (b) Copy of other National ID attested by Indian Embassy/Consulate/High Commission/ Apostille (c) Copy of Person of Indian Origin(PIO)card issued by Government of India II.Proof Of Address(a) Copy of passport (b) Copy of other National ID attested by Indian Embassy/Consulate/High Commission/Apostille (c) Copy of bank account statement in country of residence, duly attested by Indian Embassy/High Commission/Consulate/Apostille in the country where applicant is located (d) Copy of Person of Indian Origin (PIO) card issued by Government of India (e) Copy of NRE bank account statement (** showing at least two customer induced transactions in last six months period and duly attested by Indian Embassy / Consular office / Highcommission or postille or by the manager of the bank in which the account is held. The applicant may be a joint holder.For Categories other than Individuals
i.e. Firm, BOI, HUF, AOP, AOP(Trust), Local Authority, Company, Artificial Juridical Person
1. Having office of their own in India
Proof of Identity and Address HUF: Any document prescribed in the case of individuals in respect of Karta of the HUF. Company: Copy of Certificate of Registration issued by Registrar of Companies Firms: Copy of Certificate of Registration issued by Registrar of Firms or Copy of Partnership Deed. AOP (Trusts): Copy of Trust Deed or Copy of Certificate of Registration issued by Charity Commissioner. AOP/BOI/Local Authority/Artificial Juridical Person: Copy of Agreement or Copy of Certificate of Registration issued by Charity Commissioner or registrar of Co-operative Society or any other Competent Authority or any other document originating from any Central or State Government Department establishing identity and address of such person.2. Having no office of their own in India
Proof of Identity and Address (a) Copy of registration certificate of the respective country duly attested by Indian Embassy/ Consulate/ High Commission/ Apostille in the country where applicant is located.(b) Copy of certificate of registration with the competent authority in India (c) Copy of approval issued by the competent authority in India (d) Copy of the accompanying documents alongwith the approval issued by competent authority in India (e) Copy of the application (duly acknowledged) made by the applicant before the competent authority in India