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, India’s government 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 is allotted, including the Name of the entity, DOB, photograph, which can be even submitted as proof of identity and many other regulatory requirements.
Format of PAN Card
The PAN card format 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 PAN number holder’s status.
- ‘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 LiabilityLimited LiabilityLimited liability refers to that legal structure where the owners' or investors' personal assets are not at stake. Their accountability for business loss or debt doesn't exceed their capital investment in the company. It is applicable in partnership firms and limited liability companies. 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 of Hindu Undivided Family, could apply for a 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 minors’ cases, the guardians could apply for the PAN number on their behalf by providing their own ID proofs.
- NRI: In the case of citizens living outside India, they can apply for the PAN number by providing a bank statement of the country in which he/she currently resides as the address proof.
- Corporate: Companies applying for the PAN numbers should be registered with the ROCROCROC’s is the Registrar of Companies. Registrar of Companies is the public authority under the Ministry of Corporate Affairs, which administers different companies and the LLPs (Limited Liability Partnerships) in India and under the administrative control of the country's central government. and should provide the registration certificate 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 two major 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.
|Individual||Aadhar card, Voter ID, Driver’s License, Passport|
|Hindi Undivided Family||An affidavit of the HUF on behalf of the members with address proof and DOB identity of the members.|
|Corporations||Registration certificate of the companies issued by register.|
|Partnership Firms||Registration certificate of the partnership firms issued by the register of the partnership firms deed.|
|Trust||Trust deed and certificate number of registration issued by the commissioner of charity and trust|
|Society||registration certificate issued by commissioner of charity and co-operative society|
|Foreigners||Passport, Bank Statement of the residing country, Bank statement of NRE account in India|
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 for a bank loan or any credit card, a PAN number is an essential requirement.
- To purchase or sale of property having a valuation above 5 lakhs, a 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 the prescribed limit involving.
How to Apply for PAN Card?
PAN can be applied through online or offline.
Follow below given steps for applying for pan card online.
- Visit the NSDL (National Securities Depository Limited) or UTIITSL website
- Fill the required form, submit the same by shelling out the required fee amount.
- 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 TDSTDSTDS (Tax Deducted at Source) is a mechanism wherein income tax is collected at the source of income generation. The one who makes payment to another person deducts TDS out of the amount and remits the amount to the government on behalf of the receiver. , return on income, etc.
PAN number enables the authority to extract the PAN number holder’s information 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 a 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 –