The 10-digit alphanumeric Permanent Account Number (PAN) is issued by the Income Tax Department (ITD). PAN is required by all taxpayers to pay their taxes. Each assess including an individual, firm, company, foreign entity, etc. is issued a unique PAN. PAN is required to file Income Tax Return, processing of financial transactions beyond the estimated limit, depositing cash beyond Rs 50,000 in your bank account, opening a bank account, making mutual fund investments, etc. Obtaining or receiving more than one PAN by a person is considered against the law and can attract a penalty of Rs 10,000.
PAN is a computer generated code which is unique to the holder of the PAN card. The concept of Permanent Account Number was initially introduced by the Government of India in the year 1972. Later, with effect from 1st April, 1976 it was made statutory under the section 139A of the Income Tax Act, 1961. Your PAN Card is valid for lifetime because it is unaffected by any change in address.
PAN card is needed as it serves as an identity proof. Any person who has earned any income in India, PAN Card is necessary for him to file income tax returns (ITR). It is also required for sale or purchase transaction of immovable property of Rs 5 lakh or above. In case of sale or purchase transaction of a vehicle (other than a two-wheeler), PAN is mandatory. Is it compulsory to quote PAN on return of income.
You require a PAN card for making payment to hotel bill exceeding Rs 25,000 at one time. PAN is also required for depositing cash exceeding Rs 50,000 with any single banking institution in 24 hours. You also need PAN for making payment exceeding Rs 5 lakh for purchase of bullion and jewellery.
The PAN (or PAN number) is a ten-character long alpha-numeric unique identifier.
The structure of PAN card is as follows: AAAPL5678C: The first five characters are letters (in uppercase by default), followed by four numerals, and the last (tenth) character is a letter.
Here's what each component of PAN means:
PAN card in India is not mandatory, obtaining a PAN may be optional or voluntary like a passport, driving license, Aadhaar etc. But it is mandatory to perform high-value financial transactions, driving license for motor driving, passport for foreign travel etc.One can apply for PAN by submitting the application with required documents to the authorized PAN agency of the district or through online submission to NSDL Website. The required document as is : 2 recent passport size color photographs, proof of ID, Address and Date of Birth and fee. It takes about 10–15 days to receive the PAN card.
In case of re-print (re-issue), a photocopy of the old PAN is also required.
All such inquiries should be addressed to:
The Vice President
IT PAN Processing Centre,
UTI Investor Services Ltd
Plot No. 3, Sector - 11
CBD - Belapur
Navi Mumbai-400 614
Tel No. 022-27561690 / Fax No. 022-27561706
The Vice President
Income Tax PAN Services Unit, NSDL
4th Floor, Trade World, A Wing
Kamala Mills Compound,
S. B. Marg, Lower Parel,
Tel No. 022-2499 4650 / Fax No. 022-2495 0664