Permanent Account Number (PAN) is unique alphanumeric number issued to all entities under the Indian Income Tax Act 1961of India.Issued by the Indian Income Tax Department under the supervision of Central Board for Direct Taxes (CBDT) and it is a national identification number for financial purpose. It is a important Identitification proof also.Pan card is almost mandatory for financial purposes like opening a bank account, receiving taxable salary or any professional fees, sale/purchase of assets or liabelities above specified limits.
The purpose of PAN is to bring a identification key for all financial transactions and prevent tax evasion through keeping a track of transactions of high net worth.
The PAN is unique, and permanent. It is not affected by change of address.
PAN structure is as below:
First five characters are characters, next 4 numeric, then last character.
Each can be uniquely identified by the PAN.
If the PAN is not in the above structure,the PAN will be invalid
The fourth character of the PAN has to be one of the following, depends on the type of assesse:
A — Association of Persons (AOP)
B — Body of Individuals (BOI )
C — Company
F — Firm
G — Government
P — Person
H — HUF(Hindu Undivided Family)
J — Artificial Juridical Person
L — Local Authority
T — AOP (Trust)
Check your pan card status