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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:
➡️ 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.
A PAN (Permanent Account Number) is required in the following cases:
Exemptions: The requirement does not apply to the Central Government, State Governments, and Consular Offices.
The Income Tax Department issues different types of PAN cards based on the entity type:
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.
Individual Applicants (Indian Citizens)
📌 Proof of Identity (Any one):
📌 Proof of Address (Any one):
📌 Proof of Date of Birth (Any one):
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):
📌 Proof of Address (Any one):
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.
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