The Income Tax Department under the directions of Central Board for Direct Taxes issues the PAN or the Permanent Account number which is issued to all the juristic entities that the Indian Income Tax Act 1961 identifies. It is an alphanumeric combination and is different for each PAN card. It is quite similar to National Identification Number. It is a significant ID proof. All financial transactions like sale, purchase of assets, opening of bank accounts, receiving professional fees, receiving salary above the particular limits will require you to have a PAN card. The idea behind the PAN is prevention of tax evasion, tracking the transactions indulged by individuals with net worth. It is to serve as a universal identification instrument for all kind of financial transactions. PAN is permanent, national and unique. Even if there is a change in states and addresses this number remains unchanged.
Structure of Pan Card
The PAN has 10 characters out of which the first five are letters, the next 4 are numbers and the last character is also a letter. PAN is the unique identification for every individual assessee. If it does not follow the above mentioned structure then it shall be considered invalid.
PAN’s fourth character depends upon the kind of assessee you are:
- C-Company,
- H- Hindu Undivided Family,
- P- Person,
- F- Firm,
- T- Association of Persons (Trust),
- A- Association of Persons,
- L- Local Authority,
- B- Body of individuals,
- G- Government,
- J- Artificial Judicial Person
Fifth character of the PAN is the First Character of
- the surname in the case of Person
- the name of the Company, Firm etc. in all other cases
The date of issue (DOI) is generally mentioned on the right side of the photo.
Guidelines for Application of PAN card online
If you are thinking of acquiring a PAN card online then there are a few steps that you should follow.
- You will be required to fill the online form 49A and submit it.
- If you see any errors in the form then you can rectify them and resubmit the Online PAN Card form.
- A confirmation screen shall appear once you have filled in the entire Data.
- You can choose to either edit or confirm the same.
- After you have confirmed the screen shall display an acknowledgement that shall contain a 15 digit Acknowledgement number.
- You should print and save this acknowledgement.
- Along with the form you shall affix two current color photographs which should have a size 3.5cmx2.5cm and should have a white background. In the space provided. These photographs should not be clipped or stapled to the acknowledgement.
- The left thumb impression or the signature shall be only in the space provided by the acknowledgement. Any applicants who are not individuals shall require the signature of the authorized signatory on the acknowledgement and affixation of the requisite stamp or seal.
- The left thumb impression or the signature shall be provided across the affixed photo on the left hand side of the form in such manner as prescribed.
- If a thumb impression is used it will require attestation of a Notary Public or a magistrate. Attestation of a gazetted officer shall also serve well for the purpose .this shall require official Seal and the Stamp.
- If the communication address is in India then the payment of the processing fee shall be made by cheque, demand draft, debit card, credit card or net banking.
- The processing payment through the Demand Draft shall be payable at Mumbai in case the communication address is outside India.
- The present facility of dispatching the PAN Card is limited to a list of selected countries.
- You should draw the cheque or the demand draft in the name of “NSDL-PAN”
- You shall mention the 15 digit acknowledgement number on the backside of the demand draft.
- If you are making the payment by cheque then you shall deposit a local cheque that has been drawn on the bank with any HDFC branch. You should mention on the deposit slip NSDLPAN.
- If you choose to pay by way of debit card or Net banking or credit card then you shall do it as per the rules prescribed for the same depending on the kind of assessee you are.
- You shall pay an additional surcharge fees if you are making the payment by debit card or credit card or Net banking to the banks providing the payment gateway facility.
- If you have successfully paid for Online PAN Card by way of credit card, Net banking or debit card the acknowledgement shall be displayed and this acknowledgement shall be printed and saved and send to NSDL
You shall get the acknowledgement duly signed affix the photograph with the Demand Draft and a proof identity, and proof address as it is specified on the PAN Card application form and send to NSDL at the following address:
‘Income Tax PAN Services Unit, National Securities Depository Limited
3rd floor, Sapphire Chambers
Near Baner Telephone Exchange, Baner
Pune – 411045′
NSDL should receive all of this within 15 days from the date of Online PAN Card application. Your application will be processed if it has received the realization of payment and necessary proofs.