PAN Card Assistance

PAN card is a necessary document that every person should have. It is said to be "Mandatory" by Indian Government for all monetary entitlements, transactions, opening bank accounts or demat accounts etc.

It is also used as PHOTO IDENTITY for making some other Identity related proofs.

Informations for PAN has been provided below. Interested people can check these informations.

Q. What is PAN?

Answer : Permanent Account Number

 (PAN) is unique alphanumeric combination issued to all juristic entities identifiable under the Indian Income Tax Act 1961. It is issued by the Indian Income Tax Department under the auspices of the Central Board for Direct Taxes (CBDT) and is almost equivalent to a national identification number. It also serves as an important ID proof.

This number is almost mandatory for financial transactions such as opening a bank account, receiving taxable salary or professional fees, sale or purchase of assets above specified limits.

The primary purpose of PAN is to bring a universal identification key factor for all financial transactions and indirectly prevent tax evasion by keeping a track of monetary transactions of high net worth individuals.

The PAN is unique, national, and permanent. It is unaffected by a change of address, even betweenstates.

This number can be considered to be similar to Social security number issued in United States to citizens and other legal residents.

 Sample of PAN card

Structure and validation

• • PAN structure is as follows: AAAAA9999A: First five characters are letters, next 4 numerals, last character letter

  • Each assesse is uniquely identified by the PAN

  • If the PAN does not follow the above structure, then the PAN will be shown invalid

  • The fourth character of the PAN must be one of the following, depending on the type of assesse:

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

 — Govt

• • The fifth character of the PAN is the first character (a) of the surname / last name of the person. In the case of Personal Pan card, where the fourth character is "P" or (b) of the name of the Entity/ Trust/ Society/ Organisation in the case of Company/ HUF/ Firm/ AOP/ BOI/ Local Authority/ Artificial Jurdical Person/ Govt, where the fourth character is "C","H","F","A","T","B","L","J","G".

Nowadays, DOI (Date of Issue) of PAN Card is mentioned at the right (vertical) hand side of the photo on pan card.

Q. When is Permanent Account Number (PAN) necessary?

Answer:

 PAN is necessary in following circumstances: 

(a) sale or purchase of any immovable property valued at Rs. 5 lakhs or more; 

(b) sale or purchase of a motor vehicle or vehicle other than a two wheeler; 

(c) a time deposit, exceeding Rs. 50,000, with a banking company; 

(d) a deposit, exceeding Rs. 50,000, in any account with Post Office Savings Bank; 

(e) a contract of a value exceeding Rs. 1 lakh for sale or purchase of securities as defined in clause 

(h) of Sec. 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956); 

(f) opening a bank account; 

(g) making an application for installation of a telephone connection (including a cellular telephone connection); (h) 

payment to hotels and restaurants against their bills for an amount exceeding Rs. 25,000 at any one time; 

(i) payment in cash for purchase of bank drafts or pay orders or bankers cheques from a banking company for an amount aggregating Rs. 50,000 or more during any one day; 

(j) deposit in cash aggregating Rs. 50,000 or more, with a banking company; and 

(k) payment in cash in connection with travel to any foreign country of an amount exceeding Rs. 25,000 at any one time, subject to exception for those foreign travel to neighbouring countries or for pilgrimage under Explanation to Sec. 139(1). One may look out for more and more items to be notified in future.

If PAN has not been allotted, GI number is permissible. If there is neither PAN number nor GI number, Form 60 has to be filed with proof of identity in respect of transaction for which PAN number is prescribed.