What is PAN Card
Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated tamper proof card, by the Income Tax Department of India.
The Permanent Account Number (PAN) is unique to an individual or entity and it is valid across India. Permanent Account Number once allotted to an individual or entity is unaffected by a change of name, address within or across states in India or other factors.
Meaning of PAN card
A typical Permanent Account Number is would look like AFZPK7190K.. The logic behind the array of numbers and alphabets is as follows:
First three characters i.e. “AFZ” in the above PAN are alphabetic series running from AAA to ZZZ.
Fourth character 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.
Example of PAN: ABCDE1234P
PAN Number is mandatory for major financial transactions such as opening Bank Accounts, receiving taxable salary, receiving professional fees, sale or purchase of assets in major limits or higher transactions define by Income Tax of India.
PAN Card is valid for life time one person make PAN Card only one time. After some time PAN card is mandatory to link other Indian documents like Aadhaar Card, Bank Account, Driving License and other Indian Government schemes.
PAN Card Application Do’s and Don’ts
- Remember to fill in all the details as per the identity and address proof documents you are submitting.
- Do get thumb impression attested by a Magistrate/Notary before submitting the form to avoid disqualification.
- Write the complete address and provide accurate contact details in the form.
- Do fill in the application form in capital letters.
- Don’t make corrections or over write anywhere on the form.
- Do not use initials in the first name or last name columns.
- Do not apply for a new PAN card if your old PAN card is lost/stolen/defaced.
Documents required for PAN
Certain basic documents for proof of address and identity proof are required to be furnished by the PAN applicant. NSDL verifies this information with their central database and rejection of PAN applications is not an uncommon thing when information furnished is incorrect or incomplete.
Documents required for new PAN Card (Individuals):
Proof of Identity: Any one document – Passport, Voter ID Card, Driving License, Aadhaar Card.
Proof of Address: Any one document – Passport, Voter ID Card, Driving License, Aadhaar Card, Latest Bank Statement, Bonafied Certificate etc.