PAN(Permanent Account Number) is a unique ten digit alphanumeric number, which is issued to all entities identifiable under the Indian Income Tax Act 1961. It is issued by the Indian Income Tax Department and is almost equivalent to a National Identification Number. Since its issued by Government Of India, it also serves as an important ID proof for various purposes. Now a days, PAN Number has become almost mandatory for all types of financial transactions such as opening a bank account, receiving taxable salary or professional fees, sale or purchase of assets above specified limits etc.
For any PAN Card issued by Government Of India, first five characters are letters, next 4 numerals, last character letter like AXHPK3478F in which the fourth character shows to whom it belongs, which are following.
- C — Company
- P — Person
- H — HUF (Hindu Undivided Family)
- F — Firm
- A — Association of Persons (AOP)
- T — AOP (Trust)
- B — Body of Individuals (BOI)
- L — Local Authority
- J — Artificial Juridical Person
- G — Government
It is issued in the laminated form by India’s Income Tax Department.The most important purpose of PAN card is to keep a track of monetary transaction of high net worth and give a unique identification key factor for all transaction and prevent tax evasion.
Why we need it?
- It’s mandatory to have on return of income.
- For sale and purchase of immovable property or vehicle.
- For making payment of more than 25000 Rs. to hotels and restaurants.
- For obtaining telephone or cellular telephone connections.
- For travelling to foreign country.
- For depositing of cash Rs. 50000 or more in a bank.
How to apply:
A PAN application (Form 49A) can be obtained from IT PAN Service Centers or TIN Facilitation Centers or can be downloaded from different websites like www.incometaxindia.gov.in ,www.utiisl.co.in or tin.nsdl.com.You will need some documents like proof of identity as well as a proof of residence,those should be attached to application form and paste a recent colour photograph (stamp size: 3.5 cm x 2.5 cm) to application form.After that submit the filled form to nearest IT PAN Service Centre orTIN Facilitation Centre or by online with it’s fee.
- know the application status by twelve digit number of the transaction.
- Alter the payment mode.
- get the acknowledgment receipt printed again in less than thirty days within the submission of the application form.
Thus it is very simple procedure. Being a responsible citizen just apply for PAN card if you don’t have it.