What is the PAN Full Form?
I’m sure many of us have heard about PAN card via different sources. Sometimes parents, sometimes fellow workers, or even in advertisements. But what exactly is PAN?
PAN or Permanent Account Number is a 10 character alphanumeric identifier that is generally issued by the Income Tax Department in form of a laminated card to any person who applies for it or to any person whom the department allots the number without an application.
Under the Indian Income Tax Act, income tax PAN and its link card are issued and serve as a reliable proof of identification. Also issued to foreign nationals, subject to valid visa, it does not count as a valid proof for Indian citizenship but must be possessed if one needs to file income tax returns.
Now that we know what PAN is, let’s go deeper and understand its structure.
- As mentioned above has 10 characters like AAABE1234F where the first 5 characters are letters, followed by 4 numerals and ending with a letter again.
- The first 3 characters would be forming a sequence of the alphabet from AAA to ZZZ while the 4th character is the identification of holders such as Government, local authority, etc. The 5th character is actually the 1st character of either your surname/last name or name of your trust, organization, etc. The last character is just a checksum to verify the validity of your current code.
Now you must want to know what exactly is this PAN used for. Some of its major uses include:
- PAN first and foremost serves as the universal identification to any or every financial transaction of yours while acting as a superhero to prevent you from Tax Evasions by keeping a detailed track of all your monetary transactions, especially of those individuals whose net worth can stir the economy.
- Secondly, it acts as an essential tool whenever one needs to file for tax returns, tax deduction, or basically any communication with the Income Tax Department.
- If one wishes to open a new bank account, opt for a new telephone/mobile connection, wish to purchase a foreign currency, wish to sell any stationary property, etc. acts as a mandatory document.
So we do get the idea that it is pretty important, even for our day to day activities so what makes one eligible for obtaining it?
Although obtaining PAN is optional, it is however mandatory for high-value transactions as mentioned above. So in order to obtain it, you need to submit the PAN application to the authorized agency of district or through online submission on sites along with 2 passport size color photo, ID proof and proof of Address, Date of Birth, and Fee.
So this is pretty much it. If you want to be able to spend your hard-earned money without paying a penalty of RS.10,000, you must get on your feet and apply.
PAN 2020 – ONLINE APPLICATION
Application for fresh allotment can be made through the Internet. Further, requests for changes or corrections in data or requests for a reprint of card (for an existing card) may also be made through the Internet.
The charges for applying for PAN is Rs. 93 (Excluding Goods and Services tax) for Indian communication address and Rs. 864 (Excluding Goods and Services tax) for foreign communication address. Payment of application fee can be made through credit/debit card, demand draft, or net-banking. Once the application and payment are accepted, the applicant is required to send the supporting documents through courier/post to NSDL/UTITSL. Only after the receipt of the documents, the application would be processed by NSDL/UTITSL.
For New applications, in case of Individual and HUF applicants if Address for Communication is selected as Office, then Proof of Office Address along with Proof of residential address is to be submitted to NSDL w.e.f. applications made on and after 1st November 2009.
As per RBI guidelines, the entities making e-commerce transactions are required to provide PIN (Personal Identification Number) while executing an online transaction. Therefore, before making payment for online applications using credit card/debit card / net banking, the applicant is required to obtain a PIN from Banks whose credit card/debit card/net banking is being used.
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New PAN card 2020 rules
From today if you apply for a new PAN card, you will be given a new application form wherein it will not be mandatory to mention the father’s name. So far it was mandatory to furnish father’s name as the same was also printed in PAN card. Now the I-T department has made an exception for those whose mother is a single parent. This amendment is meant to address the concerns of those applicants whose fathers are estranged or dead.
PAN applicants will continue to have a choice as to whose name they want to print on the card. In case no option is provided, then only the father’s name will be used. Even if you have given the father’s name, then also you will have the option to mention the mother’s name in your PAN card.