PAN – A DETAIL GUIDE

Generally Lots of peoples don’t know about PAN (Permanent Account Number) & its necessity. Some general questions are: What is pan, its necessity, why its required in bank transaction, why its compulsory, how to verify pan, who is the pan authorities, who is liable to take PAN etc. So, here is some FAQ (Frequently asked questions) on PAN is posted here.

1. What Is PAN?
Permanent Account Number (PAN) is a ten-digit alphanumeric number,
issued in the form of a laminated card, by the Income Tax Department, to any
“person” who applies for it or to whom the department allots the number without
an application. PAN enables the department to link all transactions of the
“person” with the department. These transactions include tax payments, TDS/TCS
credits, returns of income/wealth/gift/FBT, specified transactions, correspondence,
and so on. PAN, thus, acts as an identifier for the “person” with the tax
department. PAN was introduced to facilitates linking of various documents,
including payment of taxes, assessment, tax demand, tax arrears etc. relating
to an assessee, to facilitate easy retrieval of information and to facilitate
matching of information relating to investment, raising of loans and other
business activities of taxpayers collected through various sources, both
internal as well as external, for detecting and combating tax evasion and
widening of tax base.
A typical PAN is AXJPG4358D.
First three characters i.e. “AXJ” in the above PAN are alphabetic
series running from AAA to ZZZ Fourth character of PAN i.e. “P” in the above
PAN represents the status of the PAN holder. “P” stands for Individual (Personal), “F”
stands for Firm, “C” stands for Company, “H” stands for HUF (Hindu Undivided Family), “A” stands for
AOP (Association of Persons), “T” stands for TRUST etc. Fifth character i.e. “G” in the above PAN
represents first character of the PAN holder’s last name/surname (G from Surname-Sumit Kumar Gogawat). Next four
characters i.e. “4358” in the above PAN are sequential number running from 0001
to 9999. Last character i.e. “D” in the above PAN is an alphabetic check digit.


2. Why Is It Necessary To Have PAN?
It is mandatory to quote PAN on return of income, all
correspondence with any income tax authority. From 1 January 2005 it will be
mandatory to quote PAN on Challans for any payments due to Income Tax
Department. It is also compulsory to quote PAN in all documents pertaining to
the following financial transactions:-
(a) Sale
or purchase of any immovable property valued at five lakhs rupees or more;
(b) sale or purchase of a motor vehicle or vehicle, [the sale or
purchase of a motor vehicle or vehicle does not include two wheeled vehicles,
inclusive of any detachable side-car having an extra wheel, attached to the
motor vehicle;]
(c) a time deposit, exceeding fifty thousand rupees, with a
banking company ;
(d) a deposit, exceeding fifty thousand rupees, in any account
with Post Office Savings Bank;
(e) a contract of a value exceeding one lakhs rupees for sale or
purchase of securities;
(f) Opening a bank account;
(g) Making an application for installation of a telephone
connection (including a cellular telephone connection);
(h) Payment to hotels and restaurants against their bills for an
amount exceeding twenty-five thousand rupees at any one time;
(i) payment in cash for purchase of bank drafts or pay orders or
banker’s cheques for an amount aggregating fifty thousand rupees or more during
any one day;
(j) deposit in cash aggregating fifty thousand rupees or more with
a bank during any one day;
(k) payment in cash in connection with travel to any foreign
country of an amount exceeding twenty-five thousand rupees at any one time.
3. How does Income Tax Department ensure that PAN is quoted on
transactions mentioned above?
It is statutory responsibility of a person receiving document
relating to economic or financial transactions notified by the CBDT to ensure
that PAN has been duly quoted in the document.
4. Is it compulsory to quote PAN on return of income?
Yes, it is compulsory to quote PAN on return of income. A penalty
of Rs.10,000/- is livable in case of any default.
5. How will these authorities verify PAN?
A facility for verifying PAN is available on the website of the
Income Tax department. Kindly click
6. Who must have a PAN?
i. All existing assesses or taxpayers or persons who are required
to furnish a return of income, even on behalf of others, must obtain PAN.
ii. Any person carrying on any business or profession whose total
sales, turnover or gross receipts are or is likely to exceed five lakh rupees
in any previous year;
iii. Any person, who intends to enter into financial transaction
where quoting PAN is mandatory, must also obtain PAN.
iv. The Assessing Officer may allot PAN to any person either on
his own or on a specific request from such person.
7. Can a person obtain or use more than one PAN?
Obtaining or possessing more than one PAN is against the law, for
which penalty of Rs.10,000/- may be imposed {Kindly refer Section 139A (5) (c)
read with Rule 114B for more details} {Section139A (6)} {Kindly refer Section
272B}
8. Where to apply for PAN?
In order to improve PAN related services, the Income Tax
department has authorized UTI Investor Services Ltd (UTIISL) to set up and
manage IT PAN Service Centers in all cities or towns where there is an Income
Tax office and National Securities Depository Limited (NSDL) to dispense PAN
services from TIN Facilitation Centers. For convenience of PAN applicants in
big cities, UTIISL has set up more than one IT PAN Service Center and likewise
there are more than one TIN Facilitation Centers.
9. How to apply for a PAN? Can an application for PAN be made on
plain paper?
PAN application should be made only on Form 49A. A PAN application
(Form 49A) can be downloaded from the website of Income photocopied (on A4 size
70 GSM paper) or obtained from any other source. The form is also available at
IT PAN Service centers and TIN Facilitation centers.
10. Can an application for PAN be made in Form 49A obtained from
anywhere?
Yes, PAN application may be made on Form 49A obtained from any
source other than IT PAN Service Centers or TIN Facilitation
Centers. For instance, a
PAN application may be made on form downloaded from the website of Income Tax
department or UTIISL or NSDL; or on form printed by local printers or a
photocopy of downloaded or printed form.
11. Can an application for PAN be made through Internet?
Yes, application for fresh allotment of PAN can be made through
Internet. Further, requests for changes or correction in PAN data or request
for reprint of PAN card (for an existing PAN) may also be made through
Internet. Online application can be made either through the portal of NSDL
(https://tin.tin.nsdl.com/pan/index.html ) or portal of UTITSL
(http://www.utitsl.co.in/utitsl/uti/newapp/new-pan-application.jsp ). The
charges for applying for PAN online are the same i.e. Rs. 94 (including service
tax) for Indian communication address and Rs.744 (including service tax) for
foreign communication address, i.e. there are no additional charges. Payment of
application fee can be made through credit/debit card or net-banking.
Once the application and payment is accepted, the applicant is
required to send the supporting documents through courier/post to NSDL/UTITSL.
12. Is there any TATKAL facility for allotment of PAN?
No.
13. How to find an IT PAN Service Center or TIN Facilitation
Center?
Location of IT PAN Service Centers or TIN Facilitation
Centers in any city may
be obtained from local Income Tax Office or any office of UTI/UTIISL or NSDL in
that city or from websites of the Income Tax department
(www.incometaxindia.gov.in or UTIISL(www.utiisl.co.in) or NSDL
(http://tin.nsdl.com)
14. What services are provided by these IT PAN
Service Centers
or TIN Facilitation Centers?
{Section 139A (7) read with Section 272B }
Tax department or UTIISL or NSDL (www.incometaxindia.gov.in,www.utiisl.co.in
ortin-nsdl.com) or printed by local printers or slip. After obtaining PAN from
the Income Tax department, UTIISL or NSDL as the case may be, will print the
PAN card and deliver it to the applicant.
15. What if I submit incomplete Form 49A?
IT PAN Service Centers
or TIN Facilitation Centers
shall not receive any incomplete and deficient PAN application. However, these
case may be.
16. What documents and information have to be submitted along with
the application for Form 49A?
a. Individual applicants will have to affix one recent, coloured
photograph (Stamp Size: 3.5 cms x 2.5 cms) on Form 49A;
b. Any one document listed in Rule 114 must be supplied as proof
of ‘Identity’ and ‘Address’; and
c. Designation and code of the concerned Assessing Officer of
Income Tax department will have to be mentioned in Form 49A.
17. Which documents will serve as proof of ‘Identity’ in case of
Individual applicants, including minors and HUF applicants?
Copy of school leaving certificate or matriculation certificate or
degree of a recognized educational institution or depository account or credit
card or bank account or water bill or ration card or property tax assessment
order or passport or voter identity card or driving license or certificate of
identity signed by a MP or an MLA or a Municipal Councilor or a Gazetted
Officer.
In case the PAN applicant is a minor, any of above documents of
any of the parents or guardian of such minor shall serve as proof of Identity;
In case PAN application is made on behalf of a HUF, any of above documents in
respect of Karta of the HUF will serve as proof of Identity.
18. What is proof of ‘Address’ for Individual applicants,
including minors and HUF applicants?
Copy of electricity bill or telephone bill or depository account
or credit card or bank account or ration card or employer certificate or
passport or voter identity card or property tax assessment order or driving
license or rent receipt or certificate of address signed by a MP/ MLA/Municipal
Councilor / a Gazetted Officer; In case the PAN applicant is a minor, any of
above documents of any of the parents or guardian of such minor shall serve as
proof of Address; In case PAN application is made on behalf of a HUF, any of
above documents in respect of Karta of the HUF will serve as proof of Address.
19. What documents will serve as proof of Identity and Address for
other applicants?
IT PAN Service Centers or TIN Facilitation Centers will supply PAN
application forms (Form 49A) and forms for Request For New PAN Card Or/ And
Changes In PAN Data’, assist the applicant in filling up the form, collect
filled form and issue acknowledgement centers will assist applicants to
correctly fill up form 49A or ‘Request For New PAN Card Or/ And Changes In PAN
Data’, as the Copy of Certificate of Registration issued by the Registrar of
Companies or Copy of Certificate of Registration issued by the Registrar of
Firms or Copy of Partnership Deed or Copy of Trust deed or Copy of Certificate
of Registration Number issued by
Charity Commissioner or Copy of Agreement or Copy of Certificate
of Registration Number issued by Charity Commissioner or Registrar of
Co-operative Society or any other Competent Authority or any other document
originating from any Central or State Government Department establishing
Identity and Address of such person.
20. How to find ‘Assessing Officer code’?
Assessing Officer code may be obtained from Income Tax Office
where you submit your return of income. Applicants who have never filed return
of income may find out Assessing Officer code with the help of IT PAN Service
Center or TIN Facilitation Center
or jurisdictional Income Tax Office.
21. Is a photograph compulsory for making an application for PAN?
A photograph is compulsory only in case of ‘Individual’
applicants.
22. What is the procedure for applicants who cannot sign?
Officer, under official seal and stamp.
23. Is father’s name compulsory for female (including married/divorced/widow)
applicants?
Only father’s name is required to be filled in the PAN application
(Form 49A). Female applicants, irrespective of marital status, should write
only father’s name in the PAN application
24. Is it compulsory to mention telephone numbers on Form 49A?
Telephone number is not compulsory, but if provided it may help in
faster communication.
25. Who can apply on behalf of non-resident, minor, lunatic,
idiot, and court of wards?
Section 160 of IT Act, 1961 provides that a non-resident, a minor,
lunatic, idiot, and court of wards and such other persons may be represented
through a Representative Assessee. In such cases, application for PAN will be
made by the Representative Assessee.
26. I had applied to the department but I do not know my PAN?
Please contact the Aaykar Sampark Kendra (ASK) at 0124-2438000 (or
95124-2438000 from NCR) or visit
In such cases, Left Hand Thumb impression of the applicant should
be affixed on Form 49A or ‘Request For New PAN Card Or/ And Changes In PAN
Data’ at the place meant for signatures and got attested by a Magistrate or a
Notary Public or a Gazetted Officer the Income tax Website and go to ‘know your PAN’.
You can also visit NSDL Website &
track your Newly applied or Changed PAN / TAN Status to enter your Acknowledgement
no on the site. In individual case, you can mention your acknowledgement no.
(method also applicable on companies & others) & In companies cases you
may enter Name of Company & Date of incorporation. Results shows your pan
card details, If a new pan card (In new pan card applied) allotted to you, then
PAN NO. (e. g. AAAAA1234A) is showing on the screen. Take printout the screen
for future reference, or if it is delivered by department then it must shows
courier or track no. for find the status.
27. Are there any charges to be paid at IT PAN
Service Centers
or TIN Facilitation Centers?
UTIISL and NSDL have been authorized to collect Rs.85 + Service
Tax as applicable, per PAN application and this includes cost of a tamper proof
PAN card. This amount will have to be paid in cash at IT PAN Service Center or
the TIN Facilitation Center.
28. Do you need to apply for a PAN when you move or transfer from
one city to another?
Permanent Account Number (PAN), as the name suggests, is a
permanent number and does not change during lifetime of PAN holder. Changing
the address or city, though, may change the Assessing Officer. Such changes
must, therefore, be intimated to nearest IT PAN Service Center or TIN Facilitation
Center for required
correction in PAN databases of the Income Tax department. These requests will
have to be made in a form for ‘Request For New PAN Card Or/ And Changes In PAN
Data’
29. I had applied to UTITSL/ NSDL a month ago but I have not
received my PAN card and I have to file my return of income.
Please write a email Income Tax  
30. Will the existing PAN cards issued by the Department remain
valid?
All PAN allotted and PAN card issued by the Department will remain
valid. All persons who have been allotted a PAN need not apply again.
31. Income Tax Department has issued me a PAN card; can I obtain a
new tamper proof PAN card?
PAN card surrendered. The payment of Rs.60 + Service Tax as
applicable, will also have to be made.
32. I had applied for PAN and received PAN number but have not
received the PAN Card?
Center quoting the PAN allotted to you.
33. How will the new PAN card be delivered to me?
The UTIISL or NSDL, as the case may be, will ensure delivery of
new PAN card at the address indicated by you in the PAN For obtaining the
tamper proof PAN card an application will have to be made in the form for
‘Request For New PAN Card Or/ And Changes In PAN Data’ to IT PAN Service Center
or TIN Facilitation Center, in which existing PAN will have to be indicated and
old Apply in the form for ‘Request For New PAN Card Or/ And Changes In PAN
Data’ at any IT PAN Service Center or TIN Facilitation application form or form
for ‘Request For New PAN Card Or/ And Changes In PAN Data’
Please contact Aaykar Sampark Kendra (0124-2438000 or 95124-2438000
from NCR)  or Website of Income Tax or send an
34. I want to pay taxes today but I do not have a PAN?
It takes about 15 days to get a new PAN allotted. However, PAN can
be obtained in around 5 days if application is made through Internet and
processing fee paid through credit card. It is advisable to initiate action for
obtaining PAN will in time.
35. Who should be contacted for inquiries regarding PAN
applications?
All such inquiries should be addressed to:
For UTIISL
The Vice President
IT PAN Processing Centre,
UTI Investor Services Ltd
Plot No. 3, Sector – 11
CBD_ Belapur
Navi Mumbai-400 614
e-mail.- utiislgsd@
mail.utiisl.co.in
Tel No. 022-27561690
Fax No. 022-27561706
For NSDL
The Vice President
Income Tax PAN Services Unit,
NSDL
4th Floor, Trade World, A Wing
Kamala Mills Compound,
S. B. Marg, Lower Parel,
Mumbai-400 013
e-mail.- tininfo@nsdl.co.in
Tel No. 022-2499 4650
Fax No. 022-2495 0664
Coupon number or Acknowledgement number, as the
case may be, should be mentioned in all communications.
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