Unveiling Secrets Behind Ten Characters of PAN Card

 

Decode Your Permanent Account Number (PAN) Card

This is a great breakdown of the PAN structure! You’ve explained it concisely and in an engaging way. Ever wondered what the 10 characters in your PAN card actually mean, PAN issued by the Income Tax Dept of India. It is primarily used for tracking financial transactions and tax-related  Here are a few refinements for clarity and readability:

• Grammar & Flow: “It is primarily used for tracking financial transactions and tax-related.” → “It is primarily used for tracking financial transactions and tax-related activities.” “It’s more than just a random combination-it’s your financial identity.” → “It’s more than just a random combination—it’s your financial identity.” Here’s a breakdown of what your PAN reveals:

  ➡️ First 3 Characters – A random alphabetic series (AAA to ZZZ) allocated by the Income Tax Department.

  ➡️ 4th Character – Represents the category of the taxpayer:

  P – Individual

  • C – Company

  • H – Hindu Undivided Family (HUF)

  • F – Firm

  • A – Association of Persons (AOP)

  • T – Trust

  • G – Government, etc.

  ➡️ 5th Character – Represents:

  • The first letter of the surname (for individuals).

  • The first letter of the name of the entity (for non-individuals).

  ➡️ Next 4 Characters – A unique numeric sequence ranging from 0001 to 9999.

  ➡️ 10th Character – A check digit (alphabetic), used for verification purposes.

• Enhancing Engagement: Instead of “Here’s a breakdown of what your PAN reveals:”, you could say:
  “Let’s decode your PAN and uncover what each character signifies!”
• Clarify the Check Digit: The 10th character is derived using a mathematical formula to validate the PAN. You might say:” The last character is an alphabetic check digit, determined through a specific formula for verification.”
• Closing Sentence Improvement: “Your PAN card is more than just a piece of plastic—it’s your key to financial transactions, tax filings, and legal identity in India.”

When is it mandatory to obtain a Permanent Account Number?

A PAN (Permanent Account Number) is required in the following cases:

• Individuals & Businesses Based on Income: Any person whose total income exceeds the maximum amount not chargeable to tax. Individuals or entities carrying on a business or profession with total sales, turnover, or gross receipts exceeding ₹5,00,000 in any financial year.
• For Import & Export Transactions: Required for obtaining an Import Export Code (IEC) by an importer/exporter. (This point was repeated in your text—I’ve merged it for clarity.)
• For TDS Deduction & Receipt of Income: Individuals who are entitled to receive any sum or income after deduction of Tax Deducted at Source (TDS).
• For Specified Financial Transactions: PAN is compulsory for various high-value financial transactions like:

• • Deposits above a specified limit
  • Purchase of immovable property above ₹50 lakh
  • Buying/selling vehicles (excluding two-wheelers)
  • Investments in mutual funds, stocks, etc.

Exemptions: The requirement does not apply to the Central Government, State Governments, and Consular Offices.

Types of Permanent Account Number Cards in India

The Income Tax Department issues different types of PAN cards based on the entity type:

• Individual – Includes Indian citizens, minors, and students.
• Hindu Undivided Family – For families treated as a single taxable entity.
• Company – For Indian and foreign companies operating in India.
• Partnership Firms – For businesses registered as partnerships.
• Limited Liability Partnership – For LLPs registered under Indian law.
• Trusts – For registered charitable and private trusts.
• Society – For cooperative societies, registered under the Societies Act.
• Association of Persons – For groups with a common objective but not registered as a company or firm.
• Body of Individuals – For a group of individuals earning income jointly.
• Foreigners – Non-citizens conducting financial transactions in India.

Types of Permanent Account Number Card Applications

1. Form 49A – For Indian citizens, including Minors, NRIs, Entities like Indian companies, firms, BOIs, AOPs
2. Form 49AA – For foreign citizens requiring a PAN in India.
3. Changes/Corrections or Reprint of PAN Card : For those who already have a PAN but need corrections. If no changes are needed, a simple reprint application can be submitted.

Permanent Account Number Card Eligibility: Who Can Apply : Indian citizens & NRIs and Companies, firms, LLPs, HUFs, BOIs, AOPs, and other artificial entities

Who Must Have a Permanent Account Number: Any person or entity liable to pay taxes in India. And Those conducting financial transactions where PAN is mandatory.

Documents Required for PAN Card Application:

Individual Applicants (Indian Citizens)

📌 Proof of Identity (Any one):

• Aadhaar Card
• Passport
• Voter ID
• Driving Licence
• Ration Card
• Arm’s License
• Pensioner Card
• Government Photo ID Card
• Central Government Health Scheme (CGHS) Card

📌 Proof of Address (Any one):

• Aadhaar Card
• Passport (Self/Spouse)
• Voter ID
• Driving Licence
• Post Office/Bank Passbook
• Utility Bills (Electricity, Water, Gas, Landline)
• Property Tax Order
• Domicile Certificate
• Property Registration Document
• Employer Certificate

📌 Proof of Date of Birth (Any one):

• Aadhaar Card
• Passport
• Voter ID
• Driving Licence
• Matriculation Certificate/Marksheet
• Birth Certificate
• Government Photo ID Card
• Domicile Certificate
• Marriage Certificate

Hindu Undivided Family (HUF) : An affidavit of the HUF issued by the head of the family (Karta) along with Proof of Identity and Proof of Address.

Company (Registered in India) : Certificate of Registration issued by the Registrar of Companies (ROC).

Limited Liability Partnership (LLP) : Certificate of Registration issued by the Registrar of Companies (ROC).

Partnership Firms : Certificate of Registration issued by the Registrar of Firms OR Partnership Deed

Trusts : Trust Deed OR Certificate of Registration issued by the Charity Commissioner

AOP, BOI, Local Authority, or Artificial Juridical Person : Agreement Copy OR Certificate of Registration issued by the Charity Commissioner, Registrar of Cooperative Society, or other competent authority

Foreigners

📌 Proof of Identity (Any one):

• Passport
• Person of Indian Origin (PIO) / Overseas Citizen of India (OCI) Card
• Citizenship Identification Number OR
• Taxpayer Identification Number (TIN) duly attested by Apostille, Indian Embassy, High Commission, or Consulate

📌 Proof of Address (Any one):

• Passport
• PIO/OCI Card
• Bank Account Statement
• Certificate of Residence in India
• Registration Certificate issued by Foreigner’s Registration Office (FRO)
• Visa & Copy of Appointment Letter from an Indian Company

PAN Card Fees (Including GST)

Mode of Application Submission	Mode of PAN Card Dispatch	Fees (₹)
Offline/Online (Physical Document Submission)	Physical PAN Card (India)	₹107
	Physical Permanent Account Number Card (Outside India)	₹1,017
Online (Paperless Mode)	Physical PAN Card (India)	₹101
	Physical PAN Card (Outside India)	₹1,011
Offline/Online (Physical Document Submission)	e-PAN (Sent via Email)	₹72
Online (Paperless Mode)	e-PAN (Sent via Email)	₹66

 Note: e-PAN is a digitally signed PAN card sent via email and is legally valid. The physical PAN card is sent via postal service.

Penalty for Holding Multiple PANs : As per Section 139A of the Income Tax Act, 1961, a person can hold only one Permanent Account Number. Fine of ₹10,000 can be imposed for possessing multiple PANs.