the presentation talks about what is PAN card, its structure, how to apply for it, its uses, etc.

1. PERMANENT ACCOUNT NUMBER

2. PAN (SEC 139 A)
• Permanent Account Number (PAN) is a ten-
digit alphanumeric number, issued in the form
of a laminated card, by the Income Tax
Department.
• A facility to verify PAN is available on the
website of the Income-Tax Department.

3. WHY IS IT NECESSARY TO HAVE PAN?
• It is mandatory to quote PAN on return of income, all correspondence with
any
income tax authority. From 1 January 2005 it will be mandatory to quote
PAN on challans for any payments due to Income Tax Department.
• It is also compulsory to quote PAN in all documents pertaining to the
following
financial transactions :-
(a) sale or purchase of any immovable property valued at five lakh rupees or
more;
(b) sale or purchase of a motor vehicle or vehicle, [the sale or purchase of a
motor
vehicle or vehicle does not include two wheeled vehicles, inclusive of any
detachable side-car having an extra wheel, attached to the motor vehicle;]
(c) a time deposit, exceeding fifty thousand rupees, with a banking company ;

4. (d) a deposit, exceeding fifty thousand rupees, in any account with Post Office
Savings Bank;
(e) a contract of a value exceeding one lakh rupees for sale or purchase of securities;
(f) opening a bank account;
(g) making an application for installation of a telephone connection (including a
cellular telephone connection);
(h) payment to hotels and restaurants against their bills for an amount exceeding
twenty-five thousand rupees at any one time ;
(i) payment in cash for purchase of bank drafts or pay orders or banker’s cheques for
an amount aggregating fifty thousand rupees or more during any one day;
(j) deposit in cash aggregating fifty thousand rupees or more with a bank during any
one day;
(k) payment in cash in connection with travel to any foreign country of an amount
exceeding twenty-five thousand rupees at any one time

5. Who is expected to apply for PAN ?
• Individuals
• Hindu Undivided Families
• Companies
• Partnership Firms
• Association of Persons
• Body of individuals
• Trusts
• Artificial Juridical Persons
• Representative Assesses

6. Structure and Provisions
• IT PAN Card is issued Under Section 139A of Income Tax Act.
• PAN structure is as follows: AOFBP6688A: First five characters are letters,
next 4 numerals, last character letter.
• The first three letters are sequence of alphabets from AAA to ZZZ
• The fourth character informs about the type of holder of the Card. Each
assesse is uniquely
• C — Company P — Person H — HUF(Hindu Undivided Family) F — Firm
A — Association of Persons (AOP) T — AOP (Trust) B — Body of Individuals
(BOI) L — Local Authority J — Artificial Judicial Person G — Government
The fifth character of the PAN is the first character
– (a) of the surname / last name of the person, in the case of a "Personal" PAN
card, where the fourth character is "P" or
– (b) of the name of the Entity/ Trust/ Society/ Organization in the case of
Company/ HUF/ Firm/ AOP/ BOI/ Local Authority/ Artificial Juridical Person/
Govt, where the fourth character is "C","H","F","A","T","B","L","J","G".

7. Contd…..
• The last character is an alphabetic check digit.
• Nowadays, the DOI (Date of Issue) of PAN card is
mentioned at the right (vertical) hand side of the photo
on the PAN card.
• The central government has introduced a new online
service called "Know Your PAN" to verify or validate
new and existing PAN numbers, which can be done by
visiting this website.
• Failure to comply with the provisions of Section 139A
of Income Tax Act, penalty of Rs.10,000/- for each
default is payable u/s.272B by Assessing Officer.

8. HOW TO OBTAIN PAN?
• The steps involved in applying for a PAN card
when you wish to do it online
1. Visit the website of the Income Tax Pan Services
Unit. This can be visited at
https://tin.tin.nsdl.com/pan/
2. This is the home page of the Income Tax PAN
Services unit and has different choices such as
application for a new PAN, Enquiry and Tracking
status, Reprint of PAN card and changes or
correction in the PAN details. The applicant must
choose the option which is applicable to him.

9. Contd…..
3.To apply for a new PAN, Form 49A will need to be used. Form 49A
can be filled online by visiting
https://tin.tin.nsdl.com/pan2/servlet/NewPanApp. Fill in the details
and submit the form online. After the form is submitted online
successfully, an acknowledgement is displayed. This shows a unique
15 digit acknowledgement number. This acknowledgement must be
saved and printed for further process.
4. The acknowledgement form must be sent to the Income Tax
department. Before sending this, you will need to attach a few
documents along with the acknowledgment form. This includes a
proof of address and a proof of identity. Your name which is
mentioned in these documents should be in the same format as
that in the PAN application form. Take care of this at the time of
filling in Form 49A.