PAN Full Form

PAN full form is a permanent account number and is a unique code allocated to the taxpayers in India. The Central Board of Direct Taxes supervises PAN. PAN is considered a national identity proof and is mandatory for all professionals or salaried people. 

Pan is also considered an essential document while opening a bank account. The Pan number remains unaffected irrespective of any change of address. Indian nationals can obtain this national document without any fees, but an individual can only possess one card. 

The Permanent Account Number, PAN, or Personal Identification Number, is used as a system for identifying various types of taxpayers across the country. PAN is a ten-digit unique number (that comprises both alphabets and numbers) that is assigned to Indians who primarily pay taxes.

The PAN system of identifying could be a computer-based system that assigns each Indian taxpaying entity a very unique number. All tax-related information for a private person is recorded using this method, which uses one PAN number as the primary key for data storage. Because this information is shared across the country, no two of those who work for tax-paying entities can have identical PAN.

When an entity is assigned a PAN, the levy Department also issues a PAN Card. PAN Card is a card that contains your PAN, similarly to your name, date of birth (DoB), and portrait. Copies of this card could even be wont to prove your identification or date of birth.

Because it's unaffected by changes in address, your PAN Card is valid forever.

Structure of a Pan Card

Pan is a unique identifier and consists of 10 alphanumeric entities. It is a mandatory document for Indian nationals under the Income Tax Act of 1961. The two authorities that are allowed to issue plans are UTI Infrastructure Technology and Services Limited and NSDL e-Governance Infrastructure Limited. The structure of the Pan card is as follows:

AAAKL1324X – Here, the first 5 characters are letters, the next four numerals, and the last character is again a letter.

The PAN shape is as follows: Fourth person (P — Individual or Person)

The first five characters are letters (in uppercase by way of default), accompanied by four numerals, and the last (tenth) individual is a letter.

The first 3 characters of the code are three letters forming a chain of alphabetical letters from AAA to ZZZ

The fourth character identifies the form of the holder of the card. Each holder kind is uniquely defined with the aid of a letter from the list beneath:

A – Association of persons

B – Body of Individuals

C – Company

F – Firm

G – Government

H – HUF (Hindu Undivided Family

L – Local Authority

J – Artificial Judicial person

P – individual 

T – AOP (Trust)

The fifth Character has the first character of the Pan holder's last name in the case of an individual. In the case of non-individuals, the 5th character represents the first character of the pan holders' name. 

The next four characters are sequential numbers from 0001 to 9999

The last character is an alphabetic check digit

How to Apply for a Pan Card?

An application for a PAN Card is submitted online at one of the subsequent websites:

1. NSDL

2. UTIITSL

You can also apply personally to any of the PAN agents at the district level. you may be ready to apply for a replacement PAN likewise as make changes or corrections to your existing PAN. If you lose your PAN Card, you'll request a reproduction or have the cardboard reprinted.

How to Obtain a Pan Card

Obtaining a PAN is elective or voluntary sort of a passport, driving licence, Aadhaar then on. However, its use is necessary for participating sure high-fee financial transactions, and soon.

A person with an associate Aadhaar card may submit e-KYC

You can track the status of your PAN application using the acknowledgement number supplied after you apply for a replacement or duplicate PAN, or request corrections/changes.

The complete process of printing and delivering cards takes approximately 1 week or 14 days as mentioned on the NDSL website.

Documents Required for Pan

Permanent Account Number (PAN abbreviation) requires proof of address and proof of identity as mandatory documents. Normally it requires an Aadhar card, voter ID, driving license, electrical bill, partnership deed, company registration certificate, passport, among others.

Things you need to keep in mind while filling up the Pan application

• Write in capital letters

• All the fields are mandatory

• You need a compulsory mobile number

• The form can be filled up in English/Hindi or regional language

• Sign your name clearly during self-attestation

• Incorrect documentation is liable for rejection

Why is a Pan Card Important?

Pan Card is a mandatory and important document for Indians. It is important to have Pan if your income is more than Rs 50,000.

• Pan card acts as the identity proof

• An essential document for tax payments

• Tracks and keeps the record of tax payments

• You can get connections to electricity, LPG, internet by flashing your pan card

• Pan numbers being unique it’s difficult to evade tax

• Important to have Pan purchase mutual fund shares

• Jewellery purchase of more than Rs 5 lakh requires pan card

• If you want to transfer money out of the country, you would require a Pan card

• Sale & purchase of vehicle except for two-wheeler

• Purchasing insurance policy of more than Rs 50,000

• Making payments to hotels amounting to Rs 25,000 and more

• Essential to have a Pan card while submitting direct taxes.

What is the Aim of the Pan Card?

PAN cards are vital for taxpayers because they're required for all financial activities and are wont to track your money's inflow and outflow. It's crucial when it involves paying income taxes, obtaining tax refunds, and communicating with the IRS.

Individuals who don't have a PAN can use their Aadhaar number to file returns and for the other reason where a PAN was previously required, keep with the Indian Budget 2019. This implies that if you haven't linked your PAN to your Aadhaar yet, or if you do not have a PAN but do have an Aadhaar, you must not link them or apply for a replacement PAN. However, the regulations for this are still being written, updated, and approved.

Nonetheless, PAN continues to be required for an outsized number of monetary transactions. PAN Card is additionally used as a mode of identification. type of the advantages and uses of getting a PAN are explained below

Use of Pan Card in Finance

1. Financial Transactions and also the PAN

2. When paying direct taxes, you'd prefer to quote your PAN.

3. When paying taxation, taxpayers must enter their PAN.

4. PAN information must be provided while registering a business.

5. PAN information is required for several financial operations. Below are the kinds of transactions:

• Property (immovable) valued at or over Rs.5 lakh available or buy

• Purchase or sale of a vehicle except for a two-wheeler

• Payments of over Rs.25,000 were paid to hotels and restaurants.

• Payments made in relation to international travel needs. If the sum during this scenario exceeds Rs.25,000, you'd wish to supply your PAN.

• In order to send money out of India.

Advantage of Getting a Pan Card

Because the PAN Card contains information of a personality's name, age, and photograph, it'll be used as legal identity evidence throughout the country.

The best approach is to remain on track with your tax payments.