Full Form:
PAN – Permanent Account Number
10 digit unique alpha numeric id
Introduction
The idea of PAN(Permanent Account Number) was first introduced in 1972.
It was made mandatory under SECTION 139A in 1976.
It is issued on a laminated card, also called as PAN CARD, by the Income Tax Department.
What is PAN ?
PAN format:
Typical PAN: ABCPK1998F
10 digit alpha numeric unique id
1. First 3 alphabets – ABC – a series running from AAA-ZZZ
2. Fourth letter P indicates the status of the PAN holder.
“P” stands for individual
“C” stands for Company
“H” stands for Hindu Unidivided Family (HUF)
“A” stands for Association of Persons (AOP)
“B” stands for Body of Individuals (BOP)
“G” stands for Government Agency
“J” stands for Artificial Judicial Person
“L” stands for Local Authority
“F” stands for Firm/ Limited Liability Partnership
“T” stands for Trust
3. Fifth Character K represents the first character of
i. PAN holder’s last name/surname in case of Individual
ii. PAN holder’s name in case of Non-Individual
4. The next four characters 1998 are sequential numbers running from 0001 to 9999.
5. Last character i.e. 10th character – an alphabetic check digit.
How do we receive it ?
We can receive it in two methods:
1. Either we apply (any person) for it through application.
2. Department allots to any person without application.
It is also mandatory to apply PAN by every person
i. if his total income or the total income of any other person in respect of which he is assessable under this Act during any previous year exceeded the maximum amount which is not chargeable to income-tax; or
ii. carrying on any business or profession whose total sales, turnover or gross receipts are or is likely to exceed fifty thousand rupees in any previous year; or
iii. who is required to furnish a return of income under section 139(4A).
INFO:
Trusted sites:
Full fledged detailed explanation from WHAT IS PAN to HOW DO WE GET can be found here .
Another link to pdf to know about PAN.
WARNING:
PAN DOESN’T INDICATE THE CITIZENSHIP OF A PERSON.
Holding more than one PAN is not allowed.
links:
section 139a: https://incometaxindia.gov.in/Acts/Finance%20Acts/1995/102120000000037822.htm
