PAN full form is a permanent account number and is a unique code allocated to taxpayers in India. The Central Board of Direct Taxes supervises PAN. PAN is considered a national identity proof and is mandatory for all professionals or salaried people.
Pan is also considered an essential document while opening a bank account. The Pan number remains unaffected irrespective of any change of address. Indian nationals can obtain this national document without any fees, but an individual can only possess one card.
The Permanent Account Number, PAN, or Personal Identification Number, is used as a system for identifying various types of taxpayers across the country. PAN is a ten-digit unique number (that comprises both alphabets and numbers) that is assigned to Indians who primarily pay taxes.
The PAN system of identifying could be a computer-based system that assigns each Indian taxpaying entity a very unique number. All tax-related information for a private person is recorded using this method, which uses one PAN number as the primary key for data storage. Because this information is shared across the country, no two of those who work for tax-paying entities can have identical PAN.
When an entity is assigned a PAN, the levy Department also issues a PAN Card. PAN Card is a card that contains your PAN, similarly to your name, date of birth (DoB), and portrait. Copies of this card could even be wont to prove your identification or date of birth.
Structure of a Pan Card
Pan is a unique identifier and consists of 10 alphanumeric entities. It is a mandatory document for Indian nationals under the Income Tax Act of 1961. The two authorities that are allowed to issue plans are UTI Infrastructure Technology and Services Limited and NSDL e-Governance Infrastructure Limited. The structure of the Pan card is as follows:
AAAKL1324X – Here, the first 5 characters are letters, the next four numerals, and the last character is again a letter.
The PAN shape is as follows: Fourth person (P — Individual or Person)
The first five characters are letters (in uppercase by way of default), accompanied by four numerals, and the last (tenth) individual is a letter.
The first 3 characters of the code are three letters forming a chain of alphabetical letters from AAA to ZZZ
The fourth character identifies the form of the holder of the card. Each holder kind is uniquely defined with the aid of a letter from the list beneath:
- A – Association of persons
- B – Body of Individuals
- C – Company
- F – Firm
- G – Government
- H – HUF (Hindu Undivided Family
- L – Local Authority
- J – Artificial Judicial person
- P – individual
- T – AOP (Trust)
The fifth Character has the first character of the Pan holder's last name in the case of an individual. In the case of non-individuals, the 5th character represents the first character of the pan holders' name.
Created & Posted by (Twinkle)
Accountant at TAXAJ
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