A permanent Account Number is a unique code that works as an identification proof for all tax-paying Indian citizens. Thus, the issuing of PAN in India is a great initiative taken by the Indian Income Tax Department under the control of the Central Board of Direct Taxes. A PAN card works as an identification of a person and helps in carrying out financial transactions easily. Therefore, it’s a piece of good advice to own a PAN card and links it to an Aadhar card for easy processing.
Define the Structure of PAN in India?
Your PAN card has all the information about you. From the identity proof to date of birth and all the essential information. And, as per government rules, it is mandatory to link your PAN with an Aadhar card. Therefore, all your data will comply with KYC (Know Your Customer) guidelines. Here is how a Structure of PAN is created.
- Cardholder Name: The complete name of the individual or company will be written on the PAN card in block letters.
- Cardholder’s Father Name: Only written for individual cardholders.
- Birth Date: Date of birth is written for individuals, whereas, for companies, their registration date is written on the PAN card.
- PAN Digit: A 10-digit alphanumeric code will be mentioned on the PAN card. It will be your Permanent Account Number.
- The Essence of the First Three Letters: The first three letters are alphabets. They can be anything between A to Z.
- Sense of the Fourth Letter: The fourth letter alphabet depends on the category you fall in as a taxpayer. Here are the alphabets and their meanings in the following table.
| Alphabets | Significance of Alphabets |
| A | Association Of Persons |
| B | Body Of Individuals |
| C | A Company |
| F | A Firm |
| G | Government |
| H | HUF (Hindu Undivided Family) |
| L | A Local Authority |
| J | Artificial Judicial Person |
| P | Individual |
| T | Union of Persons for a Trust |
- Significance of Fifth Letter: Fifth Letter is the first initial of the individual.
- Sense of Last Letters: These remaining numbers are selected randomly to be put on the PAN card, whereas the last letter is an alphabet.
- Signature: PAN card also works as proof of an individual’s signature identity for all financial transactions.
- Photograph: PAN card also works as a photo identity proof for the individual. However, there will be no photograph on a company’s PAN card.
PAN Operating Model in India
PAN works on the basis of a Public-Private Partnership Model. And the responsibility of handling PAN issues, delivery works, and maintenance is given to different authorities by the Income Tax Department. These entrusted authorities are:
● National Securities Depository Limited (NSDL)
● UTI Infrastructure Technology Services Limited (UTIITSL)
These agencies provide the PAN services that involve the application process, collecting/validating documents, printing PAN, issuing, and delivering with other procedures. Moreover, they offer PAN online services to make the process easy for every person.
What is the Process to Apply for PAN Online in India?
You can follow the steps given below for applying for PAN online in India.
Step 1: Visit the NSDL official website.
Step 2: Select your Form 49A (for Indians) or Form 49AA (for foreign citizens).
Step 3: Fill in all the information carefully. Also, validate all the filled information before submitting it.
Step 4: Go forward towards the payment option.
Step 5: Once your payment is made. You have to wait for a maximum of two weeks to receive your PAN card.
What is the Process to apply for PAN offline in India?
To apply for PAN offline, you can follow the steps written below:
Step 1: Download Form 49A. You can download it from the official websites of the TIN NSDL or UTIITSL website.
Step 2: Carefully fill in the information as asked in the form. Make sure to avoid any mistakes, as overwriting can lead to the rejection of your Form 49A.
Step 3: You can submit it to the nearest PAN centre.
Step 4: Now, wait for two weeks. You will soon receive your PAN card at your communication address.
Why do you need a PAN?
Since PAN is a unique 10-digit identification number, it helps in fulfilling several purposes. It is a mandatory document for filing ITR, TDS (Tax Deducted at Source), and other Income Tax Department procedures. But in the Union Budget of 2019, it was proposed to use an Aadhar card for filing ITR rather than the PAN card. Soon on 1 September 2019, the Union Budget proposed that the Income Tax Department of India will allot PAN to all taxpayers who are filing returns using Aadhar.
Here are the roles played by the PAN card:
● Identity Proof
● Address Proof
● Birth Date Proof
● Helps in Filing Taxes
● Helps with Business Registration
● For Financial Transactions
● Helps in Opening Bank Accounts
● For Gas Connections
Frequently Asked Questions (FAQ)
How to know the issuing of a PAN in India?
The PAN issuance date is not that important or in use, but you can check the vertically right side at the bottom of your PAN card.
Does the PAN card have an expiration date?
There is no expiration date for PAN, as it is valid for a lifetime.
What is the minimum age for a PAN card?
The minimum age for a PAN card is 18 years.
Who issues PAN cards – TIN NSDL or UTIITSL?
PAN cards are not issued by both TIN NSDL and UTIITSL. The PAN cards are issued by the Income Tax Department of India.
