What is PAN?
It stands for Permanent Account Number. It’s a ten-digit alphanumeric number. Permanent Account Number is issued in the form of a laminated card. It’s issued by the Income Tax Department of India. Any “person” who applies for Permanent Account Number gets it. Also, Income Tax Department allots the PAN without an application to some.
Structure of PAN:
A ten-digit alphanumeric PAN is comprises of First five characters as letters, next four numerals and last character as letter. Following are the details of the structure with the help of sample Permanent Account Number i.e. “BODPM4264F”
- The first three letters i.e. “BOD” are sequence of alphabets from AAA to ZZZ
- The fourth character i.e. “P”informs about the type of holder of the card. “P” stands for individual. Each holder is uniquely defined as below:
A — Association of Persons (AOP)
B — Body of Individuals (BOI)
C — Company
F — Firm
G — Government
H — HUF (Hindu Undivided Family)
L — Local Authority
J — Artificial Juridical Person
P — Individual
T — AOP (Trust)
K — Krish (Trust Krish)
- Next four characters i.e. “4264” in the above Permanent Account Number are sequential number running from 0001 to 9999
- The fifth character i.e. “M” is the first character of the Surname or Last name of the holder.
- Last character i.e. “F” in the above Permanent Account Number is an alphabetic check digit.
- In recent times, the DOI (date of issue) of the Permanent Account Number is mentioned at the right (vertical) hand side of the photo on the PAN card if issued by NSDL; and will not be mentioned if issued by UTI-TSL.
Importance of PAN:
It is mandate to quote Permanent Account Number while filing ITR. It’s also, mandate for all correspondence with any income tax authority. And, from January 01, 2005, it will be compulsory to quote Permanent Account Number on challans for any payments due to Income Tax Department. It is also mandate to quote PAN in all documents pertaining to the following financial transactions :-
(a) sale or purchase of any immovable property valued at Rs. 5.00 Lakhs or more;
(b) sale or purchase of a motor vehicle or vehicle, exclusive of sale or purchase of a motor vehicle or vehicle does not include two wheeler vehicles; and, inclusive of any detachable side-car with an extra wheel attached to the motor vehicle;
(c) a time deposit, exceeding Rs. 50,000.00;
(d) a deposit, exceeding Rs. 50,000.00, in any account with Post Office and Bank;
(e) a contract of a value exceeding Rs. 1.00 Lakh for sale or purchase of securities;
(f) while applying for installation of a telephone connection including a post paid mobile connection);
(g) payment to hotels and restaurants against their bills for an amount exceeding Rs. 25,000.00 at a particular time;
(h) payment in cash for purchase of bank drafts or pay orders or banker’s cheques for an amount more than Rs. 50,000.00;
(i) for purchase of Foreign currency
Who can apply for a PAN?
- Indian citizens including those who are located outside India, can apply for a Permanent Account Number by filling FORM 49A
- Foreign citizens can also apply for a Permanent Account Number by filling Form 49AA
Find out if a PAN has been allotted to you or not?
To know, whether, already a PAN has been allotted to you or not, click on “Know Your PAN”
How do I apply for PAN?
There are two ways for you to apply a Permanent Account Number : Online and Offline.
- For Offline, you may get application forms from TIN-FCs, PAN centres, any other vendors providing such forms. Also, you can freely download the same from TIN website. You can also click here to download the form.
- For Online, you can apply on TIN website. Also, you may click here to apply now
What are the documents required for applying PAN?
You need only three documents for applying a Permanent Account Number: Identity Proof, Address Proof and Date of Birth Proof. To know which documents are Officially Valid for Indian citizen, click here. And, to know about the Officially Valid Documents for foreign citizens, click here.
How can I request for reprint of my PAN or Request for change/correction in PAN Data?
For request of reprint of your existing Permanent Account Number, click here. And, for any change or correction in your PAN, you can apply online as well as offline by filling Form 49A or Form 49AA, as applicable.
How much will I have to pay for applying a PAN?
You can actually save a lot of money by applying your Permanent Account Number online or offline through TIN-FCs and PAN centres only. There are many vendors or agents who charge around Rs. 500.00 for a PAN from Indian citizen. Go online, save your money and time as well.
If your communication address is within India, the fee for processing of Permanent Account Number application is Rs. 107.00 (Rs. 93 +15% service tax).
If communication address is outside India, then the fee for processing Permanent Account Number application is Rs. 994.00 (Application fee Rs. 93.00 + Dispatch Charges Rs. 771.00) + 15% service tax).
How soon a PAN Card is dispatched?
Normally, processing of application takes 15 days, if found to be in order. And, application of changes, correction or reprint takes 25 days.
All the communication related to your PAN application are sent to your communication address, which you have mentioned in the application. Also, mention your correct e-mail address in the application form. If you do so, TIN-NSDL, inform you step by step process via e-mail. Also, do mention your mobile number in the application. This helps in fast communication in case of any discrepancies.
Track status of your Permanent Account Number:
You can track the status of your application after three days of application. For this you will have to use your 15 digit unique Acknowledgement Number. You will get this acknowledgement number once you submit your application online. And, those who have applied offline, they will get a receipt for the same.
Also, you may call TIN Call Centre on 022-27218080 to know the status of your application.