Permanent Account Number (PAN) is
a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department.
A typical PAN is AABPS1205E.
Permanent Account Number is a ten-digit number. Five of the ten are English alphabets. The fourth letter signifies the status of the account holder.
P – Individual
F - Firm
C – Company
A – AOP (Association of Person)
T - Trust
H- HUF (Hindu Undivided Family)
B – BOI (Bank of Individual)
L - Local
J – Artificial Judicial Person
G- Government
The fifth letter of the PAN is the first letter of the surname of the account holder. Four number digits then follow between 0001 and 9999. This number is allotted on the basis of the series that is running at the time of registration for the PAN card. The last digit is an alphabet chosen randomly.
It is mandatory to quote PAN on return of income, all correspondence with any income tax authority. From 1 January 2005 it will be mandatory to quote PAN on challans for any payments due to Income Tax Department.
It is also compulsory to quote PAN in all documents pertaining to financial transactions notified from time-to-time by the Central Board of Direct Taxes. Some such transactions are sale and purchase of immovable property or motor vehicle or payments in cash, of amounts exceeding Rs. 25,000/-to hotels and restaurants or in connection with travel to any foreign country. It is also mandatory to mention PAN for obtaining a telephone or cellular telephone connection. Likewise, PAN has to be mentioned for making a time deposit exceeding Rs. 50,000/- with a Bank or Post Office or depositing cash of Rs. 50,000/- or more in a Bank.
It is statutory responsibility of a person receiving document relating to economic or financial transactions notified by the CBDT to ensure that PAN has been duly quoted in the document.
All existing assesses or taxpayers or persons who are required to furnish a return of income, even on behalf of others, must obtain PAN.
PAN card is an important identity proof and mandatory for tax payments. All financial transactions are linked to PAN.
A typical PAN is AABPS1205E.
Permanent Account Number is a ten-digit number. Five of the ten are English alphabets. The fourth letter signifies the status of the account holder.
P – Individual
F - Firm
C – Company
A – AOP (Association of Person)
T - Trust
H- HUF (Hindu Undivided Family)
B – BOI (Bank of Individual)
L - Local
J – Artificial Judicial Person
G- Government
The fifth letter of the PAN is the first letter of the surname of the account holder. Four number digits then follow between 0001 and 9999. This number is allotted on the basis of the series that is running at the time of registration for the PAN card. The last digit is an alphabet chosen randomly.
It is mandatory to quote PAN on return of income, all correspondence with any income tax authority. From 1 January 2005 it will be mandatory to quote PAN on challans for any payments due to Income Tax Department.
It is also compulsory to quote PAN in all documents pertaining to financial transactions notified from time-to-time by the Central Board of Direct Taxes. Some such transactions are sale and purchase of immovable property or motor vehicle or payments in cash, of amounts exceeding Rs. 25,000/-to hotels and restaurants or in connection with travel to any foreign country. It is also mandatory to mention PAN for obtaining a telephone or cellular telephone connection. Likewise, PAN has to be mentioned for making a time deposit exceeding Rs. 50,000/- with a Bank or Post Office or depositing cash of Rs. 50,000/- or more in a Bank.
It is statutory responsibility of a person receiving document relating to economic or financial transactions notified by the CBDT to ensure that PAN has been duly quoted in the document.
All existing assesses or taxpayers or persons who are required to furnish a return of income, even on behalf of others, must obtain PAN.
PAN card is an important identity proof and mandatory for tax payments. All financial transactions are linked to PAN.
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