PAN(Permanent Account Number) is a ten-character alpha-numeric identifier, issued in the form of a laminated ‘PAN Card’. It is necessary for filing Income Tax Returns.
- Around 43 Crore+ PAN Cards are allotted to individuals, 37% women & 63% male.
- Even after Supreme Court declared it as mandatory to link Aadhaar to PAN by March 2019, till June approx. 56% people had only linked it.
- For any transaction >2 Lakhs, like buying a jewellery or a car, you need to furnish your PAN.
- Concept of PAN Card was introduced in 1972
- To get a PAN Card, it is not mandatory to furnish your Father’s name – you can get PAN by just providing your mothers name as well.
- Quoting PAN is essential while filing IT Returns, TDS or any communication with Income Tax Department.
- PAN is becoming mandatory for opening a new bank account, new landline phone connection, purchase of foreign currency, bank deposits over ₹50000 etc.
- If PAN is issued by NSDL, check the right hand side beside your picture, you can see the Date of Issue of PAN Card.
- PAN is an important document for foreigners as well, if they intend to undertake business in India or wish to invest in India.
- A PAN card is not a proof of Indian Citizenship.
Logic Behind Permanent Account Number Issued to you –
- First 3 letters of PAN are allotted in random
- Fourth letter conveys who the PAN Holder is – P(Person), F(Firm), C(Company), A(Association of Persons), H(Hindu Undivided Family), L(Local), T(Trust), G(Government related) & J(Artificial Judicial Person
- 5th Character is your 1st character of your surname or 1st letter of Name in case of HUF.
- Next 4 digits in the PAN are random between 0001 & 9999
- Last character is obtained by applying a particular formula to all the nine characters stated above
If you are struggling to re-issue or re-print your PAN Card refer to the article – https://blog.sortedai.com/diy/i-lost-my-pan-card/
Do check out Sorted AI App – to manage your personal & family’s documents at one place automatically.
Courtesy
https://en.wikipedia.org
Gaurav heads Growth & Marketing at Sorted AI. He is an IIT Kanpur Alumnus. He has more than 5 years of work experience in Entrepreneurship & Investment Banking where he worked with Credit Suisse & Tapp Me. He is an avid Keyboard/Percussion Player & a better discount hunter.
