Hello Friends,
We like to share few
important things about PAN..!!
Permanent Account Number
(PAN) is a ten-digit alphanumeric number, issued in the form of a laminated
card, by the Income Tax Department. PAN is basically a method of
identifying a taxpayer on the computer system through a unique All-India number
so that all information relating to that
taxpayer, (E.g. taxes paid, refunds issued, outstanding arrears, income disclosed,
transactions entered, status etc.) can be linked to him through the computer system.
Earlier the assesses of the
Income-tax Department were identified by their General Index Register(GIR) Number.
This was essentially a manual system. The GIR number was unique only within an Assessing
Officers Ward / Circle and not through out the country. To overcome these shortcomings,
PAN (old series) was first introduced in 1972 and made statutory u/s 139A of the
Act w.e.f. 1st April, 1976.
Usefulness
of PAN:
·
To facilitate linking
of various documents
and information, including
payment of taxes, assessment, tax
demand, arrears etc. relating to an assessee.
·
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 widening of tax base and
detecting and combating
tax evasion through
non- intrusive means.
·
To facilitate
easy retrieval of information.
New series
of PAN & its structure:
The PAN under
new series is based on following
constant permanent parameters of a taxpayer and uses Phonetic Soundex
code algorithm to ensure
uniqueness :-
1.
Full name of the taxpayer
2.
Date of birth/Date of Incorporation
3.
Status
4.
Gender in case of individuals and
5.
Father's name in
case of individuals (including in the cases of married ladies)
These five fields are called core fields, without which PAN can not be allotted.
The system automatically
generates a 10 character PAN using the information in above five core fields.
Normally we can see the
PAN as AAA S A 1234 A
The alphabets indicates as follows:
- First
Three Digit Alphabetic series running from AAA to ZZZ
- Fourth Digit- Status
In fourth digit, we can find these alphabets which indicates as
follows:
- P-Person
- C- Company
- F-Firm
- H-Hindu Undivided Family
- J-
Artificial Judicial Person
- L- Local
bodies or authorities
- A- Association
of Person
- T- Trust
- B- Body
of Individuals
- G - Government
·
In fifth digit first character of assessee's Last Name/Surname
·
Next Digit Sequential Number running from 0001 to 9999
·
Last Digit will
be an Alphabet.
Who can
apply for PAN?
Under Section 139A(1)
of the Income-tax Act, 1961 following
categories of persons
are expected to apply and obtain
PAN:
- Persons who are already
assessed or assessable to Income-tax
- Persons who
are carrying on any business or profession where
total sales/turnover/gross receipts are
or is likely to exceed Rs. 5,00,000 in any previous years
- Trusts
- Any class
or classes of
persons by whom
tax is payable under the Income-tax Act
or any tax or duty
is payable under
any other law
for the time
being in force
including importers and exporters whether any tax is payable by
them or not.
PAN under the new series
is allotted on the basis of Form 49A filled up by the applicants. Section 139A provides
that no person can hold more than one PAN. (Obtaining or possessing more than
one PAN is against the law)
Following is the format of PAN:
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