Pan card is Permanent Account number issued by the income tax department. Pan Card is not issued by default. Any person or company who is working for profits have to apply for the PAN CARD.
PAN Card is issued to individuals, companies, non-resident Indians or anyone who pays taxes in India. Pan card is compulsory for any institution who is working with the motive of earning from the business or any other activity.
1. Individual
2. HUF-Hindu undivided family
3. Company
4. Firms/Partnerships
5. Trusts
6. Society
7. Foreigners
PAN card contains information such as an identity, age proof and also complies with other details.PAN card details are as follows:
• Name of the cardholder – Individual/ Company
• Name of the father of the cardholder – Applicable for individual cardholders.
• Date of birth – the cardholder’s date of birth in case of an individual or date of registration is mentioned in case of company or firm.
• PAN Number – It is a 10 letter alpha-numeric number and each character represents distinct information of the cardholder.
• First three letters – are purely alphabetical in nature and contain three letter of the alphabet from A to Z.
• The fourth letter – this represents the category of the taxpayer. The various entities and their respective characters are as follows:
1. A – Association of Persons
2. B – Body of Individuals
3. C – Company
4. F – Firms
5. G – Government
6. H – Hindu Undivided Family
7. L – Local Authority
8. J – Artificial Judicial Person
9. P – Individual
10. T – Association of Persons for a Trust
• The fifth letter – the fifth letter is the first letter of the individual’s surname
• Remaining letters – remaining characters are random. The first 4 characters are numbers while the last one is an alphabet.
• Signature of the individual – PAN Card also acts as a proof of the individual’s signature required for financial transactions.
• Photograph of the individual – PAN acts as a photo identity proof of the individual. In case of companies and firms, no photograph is present on the card.
PAN is a unique identification number that enables each tax paying entity of India. The Pan Card is also user as Proof of Identity. Pan Card is Mandatory for Filing Taxes and Registration of Business. Each Financial transactions is tracked and recorded with pan card. Pan card is also required to open and operate current Accounts in bank. PAN is beneficial to complete e-KYC for mutual fund investments. It is now mandatory to link the pan card with aadhar card.
PAN requires two types of documents. Proof of address (POA) and Proof of Identity (POI). Any two of the following documents should meet the criteria
| Individual Applicant | POI/ POA- Aadhaar, Passport, Voter ID, Driving Licence |
| Hindu Undivided Family | An affidavit of the HUF issued by the head of HUF along with POI/POA details |
| Company registered in India | Certificate of Registration issued by Registrar of Companies |
| Firms/ Partnership (LLP) | Certificate of Registration issued by the Registrar of Firms/ Limited Liability Partnerships and Partnership Deed. |
| Trust | Copy of Trust Deed or a copy of the Certificate of Registration Number issued by a Charity Commissioner. |
| Society | Certificate of Registration Number from Registrar of Co-operative Society or Charity Commissioner |
| Foreigners | Passport PIO/ OCI card issued by the Indian Government Bank statement of the residential country Copy of NRE bank statement in India |