A PAN Card is a laminated plastic card which is issued to the applicants by the Income Tax Department of India. Here you’ll find all the important information and the answers to all common queries regarding the PAN.
What is PAN Card?
PAN, or the Permanent Account Number, is a 10 digit alphanumeric number issued to the applicants by the Income Tax department of India.
A PAN number generally looks like“LDZPS8954K”.
The initial three letters, i.e. “LDZ” in the example shown above, form an alphabetic series which can be anything between AAA and ZZZ.
The fourth letter, i.e. “P” in the example shown above, signifies the PAN holder’s status. “P” is used for Individual, “F” is used for Firm, “C” is used for Company, “H” is used for HUF, “A” is used for AOP, and “T” is used for TRUST etc.
The fifth letter, i.e. “S” in the example shown above, signifies the first letter of the last name or the surname of the PAN holder.
The next four numbers, i.e. “8954” in the example shown above, form a random sequential number which can be anything between 0001 and 9999.
The last letter, i.e. “K” in the example shown above, is a random alphabetical check digit.
What Info does a PAN contain?
The PAN Card contains the following information:
- Applicant’s Name
- Father’s Name of the Applicant
- Date of Birth of the Applicant
- The PAN Number
- Signature of the Applicant
- A Photograph of the Applicant
What is the importance of having a PAN?
The PAN number is mandatorily required to be quoted on all kinds of correspondence with the Income Tax department. Also, the PAN number is required to be quoted while making any deposits of more than INR 50,000 into your bank account.
Other than these, a PAN is required for opening a bank account, for making a sale or a purchase of any property with value of more than INR 5 Lakh, for making a sale or a purchase of any motor vehicle, and many other domestic as well as international transactions.
Who is eligible to have a PAN Card?
All citizens of India above the age of 18 years are eligible to obtain a PAN Card.
Is having a PAN Card compulsory?
Having a PAN Card is not compulsory, but if you are required to furnish a return on income or you happen to be a taxpayer, you compulsorily have to obtain a PAN card.
Also, if you are going to make any financial transaction where quoting the PAN is mandatory, you definitely need to obtain a PAN card.
What is the Validity of a PAN?
A PAN Card, once issued to you, is valid for lifetime.
What are the benefits of having a PAN?
Apart from being required for filing income tax return and many other financial transactions which have already been mentioned above, a PAN card has many other benefits as well.
It is accepted as a proof of identification nationally. But most importantly, it makes all your transactions completely legal by linking them to the Income tax department of India.