Full Form of PAN – Permanent Account Number

PAN card comes in a tangible form that the unique PAN number is allotted, including the entity’s name, DOB, and photographs, which can even be 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, and DOB, as commensurate with the KYC guidelines.

#1 – Card Format

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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 the 10-digit number of PAN, the fourth character indicates 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.read more Partnership or Firm‘T’ represents Trusts

ABCPRXXXXC

The 5th character of the PAN 10-digit number refers to the first character of the surname or last name of the individual. The non-individual 5th character represents the first character of the PAN cardholder name.

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 the case of individuals applying for PAN numbers, they should be a citizen of India and have valid addresses, date of birth, and ID proof. The proof to substantiate the ID could be a driver’s license, passport, Aadhar card or voter’s card, etc.Hindu Undivided Families: The head of the family, also known as Karta. In the case of a Hindu Undivided Family, one could apply for a PAN number on behalf of other family members by providing ID proof such as the address proof and 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 ID proofs.NRI: In this case, citizens outside India can apply for the PAN number by providing a bank statement of the country where they currently reside as the address proof.Corporate: Companies applying for 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.read more and 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 the appropriate authority can get the PAN number by providing their registration certificate.Artificial Judicial Person: Artificial judicial persons can apply for 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:

  • IndividualHindu Undivided Family (HUF)Corporation / CompanyTrustArtificial Judicial PersonLimited Liability Partnerships/ FirmMinorSocietyAssociation of person

Documents Required For PAN Card

Primarily, a PAN card requires these documents for two major reasons: proof of identity and address proof. The following are the primary documents required based on the type of PAN for which they are applying for the PAN numbers.

Why do we need a PAN Number?

The requirement of the PAN card number is 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.A PAN number is essential to apply for a bank loan or credit card.A PAN number is necessary to purchase or sell property having a valuation above ₹5 lakhs.To shell out a bill above ₹25,000 PAN number is required.A PAN number is required if someone deposits ₹50,000 or above in the bank account.PAN number is also called for to purchase and sell a car or any other vehicle.PAN number is required in case of an investment of ₹50,000 and above.PAN number is required in the purchase transaction of jewelry above the prescribed limit.

How to Apply for PAN Card?

PAN can be applied through online or offline.

Online Application

Offline Application

  • 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 out the required application form, attach the required documents with the form, and pay the application fee.Step 3: It will send the PAN number to the applicant at the address provided in the application.

Conclusion

In conclusion, we would like to say that the PAN number assists the concerned department, particularly the income tax department, in identifying all the transactions made 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. read more, 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 other business-related transactions.

This article guides the Full Form of PAN(Permanent Account Number) and its definition. Here, we discuss the format of PAN and learn how to apply for a PAN card, its eligibility criteria, and the documentation required. You may refer to the following articles to learn more about finance: –

  • Full Form of CTSControl AccountCalculate Taxable IncomeIncome Tax Accounting