1.
Training Presentation
Working Effectively and Accurately
All About PAN
By
Choksi Tax Services

2.
Structure
 Permanent Account Number (PAN) is a ten-digit alpha-
numeric number, issued by the Income Tax Department.
Each assesse (e.g., individual, firm, company, etc.) is
issued a unique PAN.
 PAN enables department to link all transactions of the
„person‟ with the department.
 These transactions include tax payments, TDS / TCS
credits, returns of income / wealth / gift, specified
transactions, correspondence, etc.
 PAN, thus, acts as an identifier for the „person‟ with the
tax department.
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3.
 PAN structure is as follows: AAAAA9999A. First five
characters are letters, next four are numerals, last is
a character letter
 If PAN does not follow the above structure, PAN will
be shown as invalid
 The fourth character of the PAN must be one of the
following, depending on the type of assesse:
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4.
 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
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5.
 The fifth character of the PAN is the first character of
the surname / last name of the person (in case of
personal PAN card, the fourth character is “P”) or of
the name of Entity / Trust / Society / Organisation

6.
Register / Track PAN Card Related
Complain / Status
 Income Tax Department has started a website namely Sparsh India
to help Assesse to Register theisr complain related to PAN Card
applied through NSDL or UTIISL and they can also check the status
of their grievance online.
 Nature of Complain may be any of the following:-
Nature of Complaint
 Neither PAN Number nor PAN Card Received
 PAN Card Not Received (PAN Number Received)
 Returned Undelivered (RUD)
 Name Mismatch
 Photo Mismatch
 Father‟s Name Mismatch
 Other
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7.
Assessee can file their complain online at
the link given below :-
 http://incometax.sparshindia.com/pan/PAN.asp?id=1
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8.
Assessee can check the status of PAN
Grievance at the link given below :-
http://incometax.sparshindia.com/pan/PAN.asp?i
d=2
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9.
What is PAN?
 Permanent Account Number (PAN) is a ten-digit
alphanumeric identifier, issued by Income Tax
Department. Each assessee (e.g. individual, firm,
company etc.) is issued a unique PAN.
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10.
What fourth and fifth digit of PAN signifies?
 4TH & 5TH DIGIT OF PAN NO. HERE IT IS:
 ASSUME PAN NO. IS AAASA1234A
 AAA I S I A I 1234 I A
5 4 3 2 1
 1.Alphabetic check Digit
2.Sequential number running from 0001 to 9999
3.First character of assessee‟s last name/surname
4.Status
5.Alphabetic series running from AAA to ZZZ
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11.
Permanent Account Number (PAN) is a ten-digit alphanumeric identifier, issued
by Income Tax Department. Each assessee (e.g. individual, firm, company etc.)
is issued a unique PAN.
 1-5 field are alpha(A to Z)
6-9 field are numeric(0-9)
10 field is alpha(A-Z)
 Forth field of pan denotes assessee status :
for individual=”P”
for Company=”C”
for Trust =”T”
for partnership firm=”F”
Body of Individual:”B”
 Association of persons:”A”
HUF=”H”
Local authority:”L”
Govt.=”G”
judicial artificial person:”j”
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12.
2.Fifth field of PAN denotes NAME
 In case of individual: Surname/last name(as given in
pan application)
for ex. in case of Ram Kumar(individual)
5th field will be “K”
4th field will be “P”
In case of Ram Kumar Gupta(Individual)
5th field will be “G”
4th field will be “P”
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13.
 In case of All Other Assesees (not confirmed for all
the assessee)
5th field will be first letter of Name/first Name
for ex : In case of Suresh Jindal (HUF)(confirmed)
5th field will be “S”(first letter of First name i.e
Suresh)
4th field will be “H”(for Huf)
 for ex: in case of ABB LTD(confirmed)
5th field will be “A”(first letter of First name)
 4th field will be “C”(for company)
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14.
Who can apply for PAN?
 All existing assessees or taxpayers or persons who
are required to file a return of income, even on
behalf of others, must have a PAN. Any person, who
intends to enter into economic or financial
transactions where quoting PAN is mandatory, must
also have a PAN.
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15.
Who can apply on behalf of minor, lunatic, idiot,
mentally retarded, deceased and wards of court?
 Section 160 of IT Act, 1961 provides that a minor,
lunatic, idiot, mentally retarded, deceased, wards of
court and such other persons may be represented
through a Representative Assessee.
 In such cases,
 In the application for PAN, details of the a minor,
lunatic, idiot, mentally retarded, deceased, wards of
court, etc. should be provided.
 Details of representative assessee have to be
provided in item 14 of the application for PAN
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16.
Is it compulsory to quote PAN on ‘return
of income’?
 Yes, it is compulsory to quote PAN on return of
income.
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17.
Do I need to apply for a new PAN when I
move from one city to another?
 Permanent Account Number (PAN), as the name
suggests, is a permanent number and does not
change
 Changing the address though, may change the
Assessing Officer. Such changes must, therefore, be
intimated to ITD so that the PAN database of ITD
can be updated.
 One can intimate change in address by filling up the
form for Request for New PAN Card or/and Changes
or Correction in PAN data.
 This form can be submitted at any TIN-FC or online
at NSDL-TIN website.
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18.
Can I obtain or use more than one PAN?
 Obtaining/possessing more than one PAN is against
the law and may attract a penalty upto Rs.10,000.
 Therefore it is advisable not to obtain/possess more
than one PAN.
 If you have more than one PAN, you should
surrender the unused PAN by logging into ITD
website at www.incometaxindia.gov.in
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19.
How do I apply for PAN?
 You can apply for PAN by filling up Form 49A:
Application for Allotment of Permanent Account
Number (PAN application form).
 You can also apply for PAN online through NSDL-
TIN website.
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20.
Can I make an application for PAN on plain
paper?
 No. Application for PAN can be made only in Form
49A notified by Central Board of Direct Taxes on
29.05.2003.
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21.
Where can I obtain application form for PAN
(Form 49A)?
 You can obtain the application form for PAN (Form
49A) in the format prescribed by Income Tax
Department from TIN-Facilitation Centers (TIN-FCs),
any other stationery vendors providing such forms or
from NSDL-TIN website.
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22.
Are there any charges for obtaining Form
49A?
 The form is freely downloadable from NSDL-TIN
website. You can also obtain the form from TIN-FCs.
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23.
Where should I submit my PAN application?
 You can submit your duly filled and signed PAN
application form along with the supporting
documents to any of the TIN-FCs or PAN Centers
managed by NSDL.
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24.
What are the charges to be paid while
submitting Form 49A?
 You have to pay Rs.94 (plus service tax, as
applicable) to TIN-FCs as processing fees while
submitting Form 49A.
 If address for communication is a foreign
address, the fee payable is Rs. 744 (including
service tax).
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25.
What will I receive on submission of the PAN
application form to a TIN-FC?
 You will receive an acknowledgment with a unique
15 digit acknowledgment number on submission of
the PAN application form.
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26.
How can I enquire about the status of my
application?
 You can inquire the status of your application by
accessing NSDL-TIN website at the “Status track”
option and quoting your unique 15-digit
acknowledgement number after three days of your
application.
 You can also obtain status of your application
through SMS (Short messaging service) using
mobile phones. For this, you have to type the word
“PAN” followed by your 15-digit acknowledgement
number and send it to 53030. For example: SMS
PAN 012345678901234 to 53030.
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27.
How do I fill the application form 49A?
 You should fill the application form legibly in English
capital letters with black ink.
 You should read all the instructions before filling up
Form 49A.
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28.
Is a photograph compulsory for making an
application for PAN?
 „Individual‟ applicants should affix a recent colour
photograph (size 3.5 cm x 2.5 cm) in the space
provided on the form.
 The photograph should not be stapled or clipped to
the form.
 The applicant should not sign across the
photograph. The clarity of image on PAN card will
depend on the quality and clarity of photograph
affixed on the form
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29.
What documents should I submit along with
the application form?
 You have to submit the following documents with the
application form:
A] Proof of identity (POI)
B] Proof of address (POA)
The documents for POI and POA depend on the
citizenship and the status of the applicant.
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30.
Which documents will serve as proof of identity in
case of individual applicants and HUF applicants?
 Individual and HUF Applicants who are citizens of India and located within
India at the time of application for PAN: Copy of any one of the following will
serve as a proof of identity:
 School leaving certificate
 Matriculation certificate
 Degree of recognized educational institution
 Depository account statement
 Valid Credit card
 Bank account statement
 Water bill
 Ration card
 Property tax assessment order
 Passport
 Voter‟s identity card
 Driving license
 Certificate of identity signed by a Member of Parliament or Member of
Legislative Assembly or Municipal Councilor or a Gazetted Officer.
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31.
Note:
 Document being submitted should be in the full
name of the applicant as mentioned in the PAN
application.
 In case the PAN applicant is a minor, any of above
documents of any of the parents or guardian of such
minor shall serve as proof of identity.
 In case PAN application is made on behalf of a HUF,
any of above documents in respect of karta of the
HUF will serve as proof of identity.
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32.
 2. Citizen of India located outside India at the time of
application for PAN: Copy of passport will serve as a
proof of identity
 3. Foreign Citizen located in India at the time of
application for PAN :- Copy of passport and Copy of
Person of Indian Origin (PIO) card issued by Government
of India will serve as a proof of identity.
 4. Foreign Citizen located outside India at the time of
application for PAN :- Copy of any one of the following
will serve as a proof of identity:
 Passport
 Other National ID attested by Indian
Embassy/Consulate/High Commission/Apostille
 Person of Indian Origin (PIO) card issued by Government
of India
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33.
What documents should be submitted as proof of
address for individual applicants and HUF
applicants?
 Individual and HUF Applicants who are citizens of India and located within
India at the time of application for PAN: Copy of any one of the following will
serve as a proof of address:
 Electricity bill*
 Telephone bill*
 Depository account statement*
 Credit card statement*
 Bank account statement*
 Rent receipt*
 Employer certificate*
 Ration card
 Passport
 Voter‟s identity card
 Property tax assessment order
 Driving license
 Certificate of address signed by a Member of Parliament or Member of
Legislative Assembly or Municipal Councilor or a Gazetted Officer.
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34.
Note:
 For serial numbers 1 to 7, proof of address should not be more
than six months old from the date of application.
 Document being submitted should be in the full name of the
applicant as mentioned in the PAN application.
 In case the PAN applicant is a minor, any of above documents
of any of the parents or guardian of such minor shall serve as
proof of address.
 In case PAN application is made on behalf of a HUF, any of
above documents in respect of Karta of the HUF will serve as
proof of address.
 It is mandatory for individuals and HUF to mention their
residential address on the PAN application and to submit valid
proof of the same.
 If office address is selected as communication address by
Individual and HUF applicants, then POA for office address is
also required.
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35.
 Citizen of India located outside India at the time of
application for PAN :-
 Copy of any one of the following will serve as a proof
of address:
 Passport
 Bank account statement in country of residence
 NRE bank account statement**
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36.
 Foreign Citizen located in India at the time of
application for PAN :-
 Copy of any one of the following will serve as a proof
of address:
 Passport
 Bank account statement in India
 Residential permit issued by the State Police
Authorities
 Registration certificate issued by the Foreigner‟s
Registration Officer
 Person of Indian Origin (PIO) card issued by
Government of India
 NRE bank account statement**
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37.
 In case „Office Address (of India)‟ is mentioned in
application made by foreign citizens , then it is
mandatory to provide all five documents mentioned
below as proof for office address.
 Copy of Visa application to Indian authorities + Copy
of Visa granted + Copy of appointment letter/contract
from Indian Company + Certificate (in original) of
address in India of applicant issued by authorized
signatory of employer on employer‟s letter head
mentioning the PAN of the employer + copy of PAN
card for the PAN mentioned in the employer‟s
certificate.
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38.
Foreign Citizen located outside India at the time of application
for PAN :- Copy of any one of the following will serve as a proof
of address:
 Passport
 Other National ID attested by Indian
Embassy/Consulate/High Commission/Apostille
 Bank account statement in country of residence, duly
attested by Indian Embassy/High Commission /
Consulate / Apostille in the country where applicant
is located
 Person of Indian Origin (PIO) card issued by
Government of India
 NRE bank account statement**
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39.
 Note:
 Showing at least two customer induced transactions
in last six months period and duly attested by Indian
Embassy / Consular office / High commission or
Apostille or by the manager of the bank in which the
account is held. The applicant may be a joint holder.
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40.
Which documents will serve as proof of identity and address for
applicants other than individual and HUF?
 List of documents which are acceptable as proof of
identity and address for applicants other than
individual and HUF is as below:
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41.
Having office of their own in India
Type of Applicant Documents for proof of identity and address
Company Copy of certificate of registration issued by Registrar of
Companies.
Firms Copy of certificate of registration issued by Registrar of
firms or
Copy of Partnership Deed.
AOP (Trusts) Copy of trust deed or
Copy of certificate of registration number issued by
Charity Commissioner.
AOP/BOI/Local Authority/Artificial Juridical Person Copy of agreement or
Copy of certificate of registration number issued by
Charity Commissioner /Registrar of Co-operative Society
/ any other Competent Authority or
any other Document originating from any Central / State
Government Department establishing identity and
address of such person.
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42.
Having no office of their own in India
Type of Applicant Documents for proof of identity and address
Company/Firms/AOP
(Trusts)/AOP/ BOI/Local
Authority/Artificial Juridical
Person
Copy of registration certificate of the respective country duly attested by
Indian Embassy in the country where applicant is located or
Copy of certificate of registration with the competent authority in India or
Copy of approval issued by the competent authority in India or
Copy of the accompanying documents alongwith the approval issued by
competent authority in India or
Copy of the application (duly acknowledged) made by the applicant before
the competent authority in India.
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43.
What is the procedure for applicants who
cannot sign?
 In such cases, Left Hand Thumb Impression
(preferably in black ink) of the applicant should be
taken on Form 49A/change request form at the place
meant for signature.
 This should be attested by a Magistrate or a Notary
Public or a Gazetted Officer, under official seal and
stamp.
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44.
Is father’s name compulsory for female applicants
(including married/divorced/widow)?
 Female applicants, irrespective of their marital
status, should write only father‟s name in the PAN
application form.
 There is no provision to mention husband‟s name in
the application
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45.
Is it compulsory for me to mention telephone
number/email id on application Form 49A?
 Either the telephone number or the email should be
mandatorily mentioned in the application
 When the telephone number is mentioned, it is
necessary to mention the STD code. In case of
mobile number, country code should be mentioned
as STD code. When the telephone is provided by
WLL service providers, the STD code should be
mentioned.
 If email id is mentioned, PAN will be communicated
on email id when it is allotted by the Income Tax
Department.
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46.
How to surrender/Cancel extra /Additional PAN
Online / Manually?
 An assessee may have been allotted multiple PAN Card.
 The multiple PAN card may have been allotted to the
Assessee for many reasons i.e.
 He may have applied multiple times for allotment of PAN and
every time he has been allotted a PAN card or may have
inadvertently allowed multiple PAN card by Income tax
Department , NSDL or UTI.
 Assessee who have more than one PAN should immediately
Apply for surrender of additional PAN number(s) allotted to
them as having more than one PAN may make them liable to a
penalty of Rs. 10,000/-
 Assessee can apply for surrender of PAN card by two
methods.
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47.
Manually
 Write a letter to this effect to the assessing officer under whose jurisdiction
you have been filing your returns.
 The letter must contain details such as your name, contact details, details of
the PAN card to be retained, details of the duplicate PAN card(s) which you
need to surrender, etc.
 Keep the acknowledgement copy of the letter that you have filed with the I-T
department, stating that you are surrendering your additional PAN.
 That is sufficient as proof of surrender and no additional confirmation from
the I-T authorities is required.
 On receipt of the acknowledgement, there is no need for you to wait for
intimation from the income tax department considering that the PAN
submitted has now been cancelled by them.
 The acknowledgment copy of the letter submitted will more than solve the
purpose.
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48.
 Manually Fill the Form No. 49A for
change/Correction in correction in PAN and submit
the same at your nearest UTI pan centers or NSDL
TIN Facilitation centers.
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49.
Online
 Visit the Following Link and fill the detail in the online
Form given at the link and following the instructions
 http://incometax.sparshindia.com/pan/newPAN.asp
 You can also surrender the pan online by filing a
application “change in pan data ” through UTI pan
centers or NSDL TIN Facilitation centers.In
application fill spare pan number in Last row of the
Form.
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50.
No penalty for quoting wrong PAN if
caused by negligence of deductee
 In the instant case, the ITO(TDS) while going through the quarterly
return in Form No.26Q, filed by the assessee noted that it has
omitted to quote PAN/had quoted invalid PAN in 196 cases.
 As regards the reasonable cause, it was pleaded on behalf of the
assessee that TDS was deducted and deposited in time in
government Treasury.
 The default is only with regard to the wrong quoting of PAN of 196 of
the deductees, such deductees quoted wrong PAN.
 However, correct PAN was given as soon as default was brought to
the notice of the assessee.
 In this case, the CIT(A) has categorically observed that the assessee
deducted TDS correctly and revised PAN and filed the revised
statement on form No.
 26G, hence there was sufficient compliance of the provisions of
section 139A. There is no dispute that the assessee quoted invalid
PAN for 196 deductees which was corrected on being pointed out by
ITO(TDS).
 In the instant case, failure to quote right PAN has occurred as the
concerned depositor had misquoted PAN. There is also no dispute
that the PAN was corrected after ascertaining the same from the
respective deductees. www.choksitax.com

51.
 It was further held that cumulative analysis of
Section 139A and Rules 114B to 114D shows that an
obligation to quote PAN/GIR number or to file Form
No.60 is that of customer and not that of the bank.
 Considering the entire facts and circumstances of
the present case, and also keeping in view the
decision of ITAT, Ahmedabad “D” Bench in the case
of Financial Cooperative Bank Limited v. ITO,
Ward 2(3), Surat (supra), we hold that there was
reasonable cause of the default,if any committed by
the assessee and hence no penalty under section
273B of the Act is leviable.
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