PAN Card- Structure, Who need to have, Mandatory Furnishing

Megha Bansal 05 Jul 2018 10,164 Views 1 comment Print Income Tax | Articles

Introduction:

Every person who is required to file ROI shall get himself registered with the Indian Revenue Authorities. On being registered, such a person is alloted an identification number, commonly known as Permanent Account Number(PAN). Sec. 139A of Income Tax Act,1961 applies for Pan Card.

Structure:

Pan card is issued under Sec 139A of Income Tax Act
The structure of PAN card is as follows: AAAPL5678C. The first five characters of PAN are letters, followed by four numerals and the last character is a letter.
The first three(3) characters are alphabets forming a sequence from AAA to ZZZ.
The fourth(4) character signifies the identity of card holder e.g. Individual person defined by “P”. Different card holders are defined as follows:

A — Association of Persons(AOP)

B — Body of Individuals(BOI)

C — Company

F — Firm

G — Government

H — HUF( Hindu Undivided Family)

L — Local Authority

J — Artificial Juridical Person

P — Individual(PROPRIETOR)

T — Trust(AOP)

K — Krish(Trust Krish) this is nowhere in income tax form as well as not known to any person in income tax office.

The fifth(5) character is either first character :

(a) of the surname of the person or

(b) of the name of the Trust, Society, Entity or organisation, for example: in the case of “Company” the 4th character is “C”, for “Firm” the character is “F”, for HUF/AOP/Trust/BOI/Local Authority/Artificial Judicial Person/Govt. where the fourth(4th) character is “H”,”A”,”T”,”B”,”L”,”J”,”G”.

Next four characters are sequential numbers running from 0001 to 9999

The last(10th) character is an alphabet used as check sum to verify the validity of current code.

Linkage of Aadhaar Card with PAN Card:

1. Central Board of Direct Taxes(CBDT) extended the deadline for Pan -Aadhaar linking to March 31,2019. This is the fifth time that the government has extended the deadline for individuals to link their PAN to Aadhaar.

2. Following is the procedure to link PAN with Aadhaar card.

i. Firstly go to portal incometaxefiling.gov.in.

ii. Then a web page will open. Mention details of PAN card, Aadhaar number and name as per Aadhaar. Must make sure that name on Aadhaar matches exactly as on Pan card.If in case name on Aadhaar and PAN are not exactly same, there is no need to worry as anyone can easily update correct name either on PAN card or Aadhaar. So stop worrying about

iii. Then a screen will open where you need to fill captcha code as given on that screen.

iv. The income tax department cautions that the name, date of birth and gender as per PAN will be validated against Aadhaar details. The department also tells the citizens that they must make sure that name on Aadhaar is exactly the same as printed on Aadhaar card.

PERSONS MANDATORILY REQUIRED TO APPLY FOR PAN

Following persons are mandatorily required to apply for PAN CARD :-

Whose Total Income exceeds maximum amount which is not chargeable to tax (i.e. Basic Exemption Limit)
Person carrying on Business or Profession and Total sales, Turnover or Gross Recieprs are or is likely to be > Rs. 5,00,000 in any previous year.
Charitable or Religious Trusts which are required to file ROI u/s 139(4A)
Any other person specified by CG.
Exporters & Importers defined under Custom act, 1962 required to obtain an importer exporter code.
Assessees defined in Central Excise Act.
Persons who issue invoice under rule 57AE requiring registration under the Central Excise Rules, 1944.
Assessees registered under GST.

MANDATORY FURNISHING OF PAN : Following are the cases where it is mandatory required to furnish the PAN :-

Sale/purchase of motor vehicle(other than 2 wheeler) which requires registration under motor vehicles act,1988
Making application for debit card or credit card to banking co./ co-op bank/ any institution
Payments to hotels and restuarants >= Rs.50,000 at any time.
Payment in cash in connection with travel to foreign country or payment in foreign currency > Rs. 50,000 at any one time.
Contract for sale/purchase of securities(other than shares) as defined in SCRA > Rs. 1,00,000 per transaction.
Opening an account(other than time deposit & saving a/c) with banking co./ co-op bank.
Time deposit> Rs. 5,00,000 during a F.Y. with a banking co./ co-op bank/nidhi co./ NBFC/ Post office.
Opening of DEMAT account with a depository participant, custodian of securities or any other person registered u/s 12(1A) of the SEBI Act,1992.
Payment of life insurance premium to an insurer as defined in the Insurance Act, 1938> Rs. 50,000 in a F.Y.
Sale/ purchase by person of shares of a company not listed in a recognized stock exchange> Rs. 1,00,000 per transaction
Deposits in cash with banking co./ co-op bank Rs. 50,000 during any one day.
Payment>Rs.50,000 to mutual fund for purchase of units.
Payment>Rs. 50,000 to company/institution for acquiring debentures/bonds issued by it.
Payment> Rs. 50,000 to RBI for acquiring bonds issued by it.
Sale/purchase of immovable property> Rs. 10,00,000 or for value adopted under Section 50C.

CONCLUSION : From above discussion,it is hereby concluded that Section 139A of Income Tax Act,1961 defines provisions of PAN. It consists of 10 characters,every character has its own significance. For filing return of income,one must have to obtain PAN CARD.

Hope you all understand the provisions of PAN CARD by reading this article.In case if you have any query regarding this article,feel free to ask your queries.

Have a happy reading !