Full Form Of PAN

What is the full form of PAN?

PAN stands for Permanent Account Number, a set of ten-digits alphanumeric characters that the Department of Income Tax issues. It is in a tangible form and every individual has a unique PAN number that comprises of Organization Name, DOB, a photo that serves as identification proof and is necessary for several other regulatory standards.

PAN Card format

The PAN card format contains information about the PAN card holder like their name, Date of birth, as correlated with KYC regulations. It provides the following information:

• Name of the individual
• Name of the applicant‘s father
• Individual’s Birth Date and in case of non-individuals, registration date with the appropriate authority.
• The PAN card is issued in the format of “ZZZPL1234C”.

Example: Consider a PAN card number XYZPNXXXXZ

1. Fourth character: Holder status of the PAN number

• P – Individual
• C – Company
• H – HUF (Hindu Undivided Family)
• A – AOP (Association of Persons)
• B – BOI (Body of Individuals)
• G – Government Agency
• J – Artificial Judicial person
• L – local authority
• F – Firm or Limited Liability Partnership
• T – Trusts

2. Fifth character: For individuals, it is the first character of their last name and for non-individuals, the first letter of the PAN cardholder’s name.

3. Sixth to ninth characters: numerals from 0001 to 9999.

4. Tenth character: represents alphabetic check digit

Various types of PAN

Types of PAN cards are:

1. Individual
2. Trust
3. HUF (Hindu Undivided Family)
4. Company or Corporation
5. Artificial Judicial Person
6. Minor
7. Society
8. AOP (Association of person)
9. Firm or Limited Liability Partnerships

Necessary documents for PAN Card

Documents are necessary as they can substantiate proof of identity and proof of address. Following are the important documents necessary for the PAN numbers depending on the PAN form:

1. Individuals

Required documents:

1. Voter ID
2. Driving license
3. Adhar card
4. Passport

2. HUF (Hindu Undivided Family)

Required documents:

1. An affidavit of Hindu Undivided Family
2. DOB identification of the member
3. Address proof of the members

3. Companies

Required documents:

Register certificate of the company (issued by the registrar).

4. Trust

Required documents:

1. Trust deed
2. Registered certificate number (issued by trust and charity commissioner)

5. Society

Required documents:

Registered certificate number (issued by the commissioner of cooperative society).

6. Foreigners

Required documents:

1. Bank statement of residential country
2. Passport
3. Bank statement of NRE account in India

Importance of PAN Card

1. An important document that acts as identity proof and is a requirement for filing an income tax return.

2. PAN number is a necessity when opening an account in a bank, getting a loan or credit card, etc.

3. Important during the sale or purchase of automobiles (except two-wheelers) or property worth more than five lakh.

4. Acts as identity proof

5. Keeps a record of tax payments and is a necessary document when submitting direct taxes

6. Help get electricity, LPG, and internet connections

7. Unique PAN number makes evading tax difficult

8. An important document when purchasing mutual fund shares or transferring money out of the country

9. An important document when buying an insurance policy of more than Rs 50,000 or making hotel payments of Rs 25,000 and more