PAN Card and PAN Number Uses

To put it simply, a Permanent Account Number or PAN card could be defined as an identification number distributed by the Income Tax Department of India. The laminated cards typically contain personal identity details. People who have applied for a PAN Card will have the information on the document.

Those who have very little idea about what a PAN card is, are essentially vital identification documents that feature ten-digit alphanumeric code. This code comes into a function for clubbing all personal transactions with the I.T. department. For your simple understanding, these transactions often involve TDS/TCS credits, tax payments, or more.

Where is PAN Card Number?

It's worth mentioning that PAN cards come with a uniquely assigned ten-digit code for every individual. If you are a first-timer, you must realize that the first five figures feature alphabets. Then the next four digits represent numbers, with the remaining last digits containing numbers and alphabet again. All these digits have significant value and reveal the private information of the account holder.

Here's a detailed breakdown of the classification to thoroughly understand the ten characteristics or the classification of characters in the Pan card and where is pan card number.

1. Initial Three Characters:

The initial three digits come off as standard alphabetic series beginning from AAA to ZZZ. The department of Income Tax assigns the digits randomly, often pairing the letters such as ZRT or AZT.

2. Fourth Character:

Then comes the fourth digit in the ten digits PAN number sequence- it essentially represents the present status of the PAN cardholder. There's no denying that this particular digit is arguably one of the most crucial characters. Organizations that work with PAN cards typically use this character for identifying the status of the cardholder.

3. Fifth Character:

The fifth character in the sequence represents the initial alphabet of the card holder's surname or last name. Additionally, if there's any change in the title due to marriage or any other reason, the PAN card number should remain unaltered.

4. Sixth To Ninth Characters:

The four characters from six to nine are numbers, typically beginning from 0001 to 9999. Much like the initial three characters, the selection here is random as well.

5. Tenth Character:

The tenth and final character in the PAN card is always an alphabetic check digit that tends to be any alphabet. Additionally, you must also realize that PAN cards also consist of:

• The cardholder's name – Company or Individual

• The cardholder's father's name – This is only applicable for individual cardholders, not any company.

• Date of birth – The card will contain the cardholder's Date of birth or the date of registration of a firm or company.

• Individual's Signature - PAN cards carry a unique signature of the individual, which acts as proof for financial transactions.

• Individual's Photograph – The card typically functions as a photographic identity proof for the individual. However, pictures are not necessary for companies and firms on PAN cards.

If you are new to the concept of PAN cards, you need to realize that the Income Tax Department has access to link every transaction of an individual collectively with a unique PAN card number. To put it simply, these transactions range from the tax deduction, tax payment, tax collection at source credits, wealth, gift, income return, or any specified transactions, etc.

Hence, it is only essential to mention that a PAN card is a universal key for identification that assists financial transaction tracking. PAN cards help keep a record of all transactions that have a taxable component for preventing tax evasion. This function remains unaltered across the country for people who may or may not change their residential address.

Features of PAN Card

Here's a detailed breakdown of all the essential features of a PAN card. 

• They are essential for all payments and communications with the Income Tax Department of India. An individual must always have a unique PAN number length to pay tax, claim a tax refund, and submit tax collected at source or tax deducted at source. 

• Legal Identity Proof

It's noteworthy that a PAN card can effectively qualify as a valid identity proof for the cardholder across the country. The card features all possible details of the individual, such as Date of birth, name, photograph, and signature.

• Enables Payment Verification

Thirdly, you must realize that a PAN card ensures that your payments are clubbed collectively under your PAN number. This effectively makes payment verification convenient and easy.

• PAN Card is Compulsory for Particular Financial Transactions

All first-timer cardholders must realize that PAN cards are mandatory for specific financial transactions. These economic situations typically entail credit or debit card application, sales, and purchase of vehicles, and opening a Demat account with SEBI.

• Registration of Businesses

You must have a PAN card to register your business, such as a firm, a company, a HUF, etc.

Pan Number Uses and Benefits

Here's a detailed breakdown of all the essential benefits of a PAN card. 

• You will need a PAN card for sale or purchase transactions of assets. To put it simply, you will require a PAN card for buying or selling any immovable property that has a rough value of five lakh rupees. The situation is quite similar with the sale and purchase of motor vehicles as well. 

• A PAN card can essentially help you to open a bank account in both nationalized and private banks.

• You could use your PAN Card to gain a phone connection.

• You could use your PAN Card to gain a new Gas connection.

• You could also use your PAN Card to make periodic payments against your bills exceeding twenty-five thousand rupees in any restaurant and hotel.

• You could use your PAN Card for making cash payments of more than twenty-five thousand rupees when traveling to any particular foreign country.

• Finally, PAN cards can always help you to identify fraudulent transactions. Additionally, it can also contribute to reducing tax evasion while conducting transparent transactions between seller and buyer.

How to Apply For a PAN Card?

Considering that you are a first-timer, you must realize that one can apply for PAN cards both through online or offline mediums.

Offline PAN Application:

Step 1: You must download a digital copy of a PAN card application form from the UTIITSL or NSDL online portal.

“https://www.tin-nsdl.com/downloads/pan/download/Form_49A.PDF”. 

You could do the same from UTIITSL agents.

Step 2: You must fill out the forms satisfactorily and complete the submission with all relevant documents in place for the NSDL office. You must provide the processing fee as well.

Step 3: You will receive the PAN card at your desired delivery address within fifteen working days.

Online PAN Application:

Step 1: You must visit the UTIITSL or NSDL or website to apply for a PAN card online – https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html

Step 2: Upon reaching, you must click on "New PAN"

Step 3: If you are applying for an individual, you must fill in PAN form 49A.

Step 4: Similar to the offline application process, you must deposit the processing fee during submission.

Step 5: The final page will be generated after the payment, and this will consist of a 15-digit acknowledgment number.

Step 6: You must send the acknowledgment form to NSDL online, with all the relevant documents in place.

Step 7: Once the documents and application are verified, the PAN card will reach you within the next fifteen working days.

Required Pan Card Documents

When applying for a PAN card, you must present identities proof, such as the Voter Id Card, Aadhar Card, Arm's Card, Central Government's Health Scheme Card, or Pension card with a photograph. Additionally, you would require an address proof where documents like Aadhar Card and Voter Id will work. You would also need your bank statement, water bill, card, post-paid mobile phone bill, driving license, passport, and more. You should also keep your Date of birth proof up close, just in case.