PAN full form is the Permanent Account Number.
- Eligibility Criteria
- Types of PAN Card
- Documents Required
- Requirement of PAN Card
- Application Procedure
- Format of PAN Card
- Format of PAN Card Number
- PAN Full Form FAQs
Permanent Account Number is popularly known to us as PAN. It is a combination of 10 alphanumeric number i.e. alphabetic and numeric digits both are contained in the PAN which is an electronic system based on computer.
One of the Indian government organization, income tax department has the authority to issue this to trace taxpayers in India and for other purposes.
Unique number of PAN is allotted in the form of tangible as PAN card that contain the name of the person, date of birth, photograph as per the identity proof that you have submitted during application.
Through this unique PAN number records are registered that are related to tax of a person or organization. This is used as the primary centre to keep information stored and is shared to the various organization throughout India.
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PAN: Permanent Account Number
PAN at a Glance
- Issuing Authority of PAN: Income Tax Department, Govt. of India (GOI)
- Commencement of PAN Card: 1972
- Validity of PAN Card: Lifetime
Eligibility Criteria to get PAN Card
Individuals, various organizations, foreigners or any other person who are eligible to submit tax in the territory of India can avail PAN card.
Types of PAN Card
PAN Cards are of various types such as Individual, Hindu Undivided Family (HUF), Organization / Company, Trust, Artificial Judicial Person, Partnerships/ Firm, Minor, Society, Association of person, foreigner.
Documents Required for PAN Card
The purpose of documents is to proof the identity and address of the person. You need to submit the following documents during the application for PAN card.
Individual: Individuals wanted to have the facility of PAN card have to show authentic address proof, identity proof and other details. As a proof of identity one can submit Voter ID, Passport, Driving Licence, Aadhaar card.
Hindi Undivided Family (HUF): An affidavit by the HUF head to the members as well as details of POI/POA.
Registered Company in India: Every company in India has the registration certificate which is authorized by the Registrar of Companies.
Trust: Certificate of deed or registered certificate that a Charity Commissioner issued to the Trust.
Society: Registration Number of Certificate that is issued by the Registrar of Co-operative Society or Charity Commissioner.
Foreigners: Passport, Country’s Bank Statement, NRE’s bank account statement in India.
Requirement of PAN Card
There are many reasons where PAN card number is needed. We have discussed some most relevant use of PAN card number.
- To file an Income Tax return, you have to provide PAN card number.
- You can use PAN card number as identity proof.
- In banks during opening Bank account or depository account, you must provide PAN card number.
- While applying for loan or credit card in the bank, PAN card number is an important document.
- In case of selling or purchasing properties that have more than 5 lakhs valuation, it is essential to submit PAN card number.
- To pay a bill above Rs. 25,000, it is important to have PAN card number.
- At the time of depositing amount Rs 50,000 or above, you need to provide PAN card number.
- While purchasing or selling vehicles like car or other items, you are asked to provide PAN card number.
- If you want to invest an amount of Rs 50,000 or above have to provide PAN card number.
- To do transaction at the time of purchasing jewelry over a certain limit.
Application Procedure for PAN Card
To apply for PAN Card, you have to follow certain steps. In case of online application:
- You need to visit the official website NSDL (National Securities Depository Limited) or UTIITSL.
- Fill all the information that are asked in the form.
- PAN card number will be delivered to the address which is provided by the applicant during application.
For Offline Application:
- Phase 1: Collect the application form the nearby PAN card centre.
- Phase 2: Filled up all the column in the application form and provide all the required documents along with this and make payment of application fee.
- Phase 3: You will get the PAN card at your residential address that you have submitted in the form.
Also Read: INR Full Form
Format of PAN Card
Structure of PAN card displays details of the applicants such as name of the applicant, DOB which is identical with the guidelines of KYC (Know Your Customer). Information that are available in PAN card are mention below:
Cardholder’s Name: Applicant’s name (Company or Individual)
Father’s Name of the cardholder: Name of the father of the applicants (in case of individual cardholder)
DOB (Date of Birth): For individual, date of birth and in case of organization or company or firm, date of registration.
PAN Number: An alpha-numeric number of 10 letter which represents information individually.
Format of PAN Card Number
1. First Three Character: The nature of first three letters are alphabet which are the alphabet among A to Z.
For example, GAKPSXXXXN where ‘GAK’ is chosen from alphabet A to Z.
2. Fourth Character: This indicates the status of the cardholders through various alphabet carrying different entities like:
- ‘A’ indicates Association of Persons
- ‘B’ indicates Body of Individuals
- ‘C’ indicates Company
- ‘F’ indicates Firms or Partnership
- ‘G’ indicates Government
- ‘H’ indicates Hindu Undivided Family
- ‘L’ indicates Local Authority
- ‘J’ indicates Artificial Judicial Person
- ‘P’ indicates Individual
- ‘T’ indicates Association of Persons for a Trust
For example, GAKPSXXXXN, here ‘P’ indicates individual person.
3. Fifth Character: This shows the surname of the applicant. This character is taken from the first letter of surname of the individual. On the other hand, PAN cardholder’s name is represented by the fifth character for non-individual. As an example, GAKPSXXXXN, where ‘S’ displays the first letter of surname of the applicant.
4. Sixth to Ninth Character: These four numbers are selected from 0001 to 9999. For example, GAKPSXXXXN, here ‘XXXX’ are random numbers.
5. Tenth Character: This is the last character that displays the alphabetic check digit. In the PAN card number GAKPSXXXXN, ‘N’ is the alphabetic check digit.
PAN card number is very useful for the department of income tax. Using this number, they track all the transactions made by the cardholder. The amount of transactions is different for the payment of income tax, return on income, etc.
PAN Full Form FAQs
Q1. What is the full form of PAN?
Ans: The full form of PAN is Permanent Account Number.
Q2. Is there any lower or upper age limit for PAN card?
Ans: According to the Income Tax Act, section 160, person of any age are eligible for PAN card. In the act, there is no indication for age limitation. You can also apply for children below 5 years.
Q3. Is my surname mention in the PAN card?
Ans: As per the Income Tax Act, section 139A, income tax department issue PAN card with a number of 10 character to an eligible person. Out of this character the fifth character indicates the surname of the person.
Q4. What is the use of PAN card?
Ans: Nowadays, PAN card is an essential document for an individual or an organization. It can be used as identity proof at the time of opening bank account, Income Tax Department used it to track income of an individual or an organization.
Q5. Can PAN card of a minor used as identity proof?
Ans: No, one can’t use PAN card of a minor as identity proof as it doesn’t contain their photo or signature.