Know your PAN Structure Meaning of PAN digits (Income Tax India)

Structure of the new series of PAN : The Permanent Account Number under new series is based on following constant permanent parameters of a taxpayer and uses Phonetic Soundex code algorithm to ensure uniqueness :-

i. Full name of the taxpayer;

ii. Date of birth / Date of Incorporation;

iii. Status;

iv. Gender in case of individuals; and

v. Father name in case of individuals (including in the cases of married ladies)

These five fields are called core fields, without which PAN cannot be allotted.

The PAN under the new series is allotted centrally by a customised application system (IPAN / AIS) for all-India uniqueness. The system automatically generates a 10 character PAN using the information in above five core fields.

Structure of PAN

The fourth character of the PAN must be one of the following, depending on the type of assesse:
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 Juridical Person
G  Govt

The fifth character of the PAN is the first character (a) of the surname / last name of the person. In the case of Personal Pan card, where the fourth character is “P” or (b) of the name of the Entity/ Trust/ Society/ Organisation in the case of Company/ HUF/ Firm/ AOP/ BOI/ Local Authority/ Artificial Jurdical Person/ Govt, where the fourth character is “C”,”H”,”F”,”A”,”T”,”B”,”L”,”J”,”G”.

Know PAN by Name

The phonetic PAN (PPAN) is a new concept which helps prevent allotment of more than one PAN to assessees with same / similar names. AIS works out the PPAN based on some important key fields of an assessee using an internal algorithm. At the time of PAN allotment, the PPAN of the assessee is compared with the PPANs of all the assessees to whom PAN has been allotted all over the nation. If a matching PPAN is detected, a warning is given to the user and a duplicate PPAN report is generated. In such cases, a new PAN can only be allotted if the Assessing Officer chooses to override the duplicate PPAN detection.

A unique PAN can be allotted under this system to 17 crore taxpayers under each alphabet under each status (i.e. individual, HUF, Firm, Company, Trusts, Body of Individuals, Association of Persons etc.)

Permanent Account Number under new series Since a taxpayer can make payment of taxes or have monetary transaction anywhere in India, a unique all India taxpayer identification Number is essential for linking and processing transactions / documents relating to a taxpayer on computers, as also for data matching. Therefore, a new series of Permanent Account Number was devised . Section 139A of the Act was amended w.e.f. 1.7.95 to enable allotment of PAN under new series to persons residing in areas notified by the Board.Ã…¡ Applications for allotment of PAN under new series was made mandatory in Delhi, Mumbai and Chennai w.e.f. 1.6.96, and in rest of the country w.e.f. 11.2.98.

Objectives sought : PAN was introduced keeping in view the following objectives :-

i.  to facilitate linking of various documents and information, including payment of taxes, assessment, tax demand, arrears etc. relating to an assessee.
ii. to facilitate easy retrieval of information.
iii.  to facilitate matching of information relating to investment, raising of loans and other business activities of taxpayers collected through various sources, both internal as well as external, for widening of tax base and detecting and combating tax evasion through non-intrusive means.

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23 thoughts on “Know your PAN Structure Meaning of PAN digits (Income Tax India)

  1. Bhishma Narayan Pradhan

    Dear Sir,
    I am secretary of a Society registered under SRA – 21, 1860.
    I want to know which ITR Form should i fill for Income tax return for our Society. Is it will be ITR-7 As status- Association of Person (Trust)/ or only Association of Person.Society’s PAN-AABAN7883J.
    Thanks I awaiting for your valuable advice.

    Reply
  2. Gopalkrishna R Kadolkar

    Sir, I am a PAN holder. My income is 5000/- a month (approximately) and it varies month by month as I do not possess a permanent and specific income. Am I liable to pay income tax?

    Reply
    1. Dinesh Vazirani

      Hi,

      As your income is Rs. 60,000 annually which is below taxable limit, you are not liable to pay Income Tax.

      Regards
      Dinesh

      Reply
    2. kailash

      Hi gopalkrishna, you are not liable to pay income tax because your income is less than 300000/- per year. Any individual whoes income is more than 300000/- per year he is liable to pay income tax. So don’t worry you are not liable to pay income tax take a chill pill.

      Reply
  3. bhaskar

    TO Bhishma Narayan Pradhan

    Society is registered under act is recognized under AOP, shall be taxed as per rates prescribed to cooperative societies on taxable income, as follows and ITR 5 shall be filed.

    first 10,000 10%
    next 20,000 20%
    above 30,000 is 30%.

    Reply
  4. Sanjay Basu

    Sir,
    we have an estate of debbator property for a long time since approximately 400 years ago nammed SRI SRI SINGHABAHINI ESTATE.
    Some properties has been nammed on that name.We have no other records.
    are we illegible to get a PAN CARD for open a Bank a/c in name of our estate?
    With Regards
    Sanjay.

    Reply
  5. SRI HARSHA RAPARLA

    We are running a Non-Profit Organisation of Children’s Home. How can I apply for a Pan card in the name of Society?

    Reply
  6. S. Ramakrishna

    We have formed an association in our Residential Building for maintenance. We want to apply for pan in the name of the Association (not a Trust). As per requirement we have to submit an Agreement. Is there any format? and also what other data is required to open a PAN.
    Kindly reply

    Reply
  7. Amit kumar Singh

    I got my individual pan number starting from G series. I want to know, am i eligible to take credit cards and loans.

    Reply
  8. Sandeep kumar gupta

    Sir I have a pan of trust (AOP) but I am registered under chhattisgarh society act then which ITR is applicable and what is my nature of person?

    Reply
  9. Debabrata Bose

    Our Housing Society has been registered under West Bengal Apartment Owners Act. Our PAN Card is under AOP. Should we submit IT return in ITR 5 and will be assessed as per IT rules applicable for AOP ?

    Reply
  10. singh pravin rajendra

    My name in the certificate of 10th standard is Singh pravin Rajendra
    Surname name and father’s name
    Can I make the pan card with this name

    Reply
  11. Pranab

    Sir,

    I am an Accountant, I am working in Registered Society which deals in Financial Activities like Micro Financing and Strengthen the livelihood of financially backward class.

    So my fellow colleagues are much experienced then me I am just 9days old in this Organization. They are saying we can deduct TDS for a Firm in an Individual PAN Number. Means can deduct 2% in Section 194(C) in the name of Firm-holders PAN number and file return in that PAN No.

    Firm didn’t provide us PAN no. of their ORG. that is another topic but we have a argument on “we can depot 2%, but we cannot file return 2% on that Individual PAN no.” My Point.

    They are saying can depot and file the return fully.

    Please response.

    Reply
  12. Subramanian.V

    Sir, I got NRI on Sept 20, 2016. I would like to have your advice on
    (1) Will my PAN Card number change as NRI &
    (2) my income is in India only & it is interest income only.My income will be lower than Rs. 3 Lakhs. I am 79 years old. So no tax would be payable.
    (a) Can I file for AY 17-18 in ITR-1 (Sahaj)?
    (b) Should I show in ITR (Sahaj) for AY 17-18 as Resident, Non-resident or Resident but Not Ordinary Resident since I have become GC holder only from Sept 20, 2016?
    Subramanian.V

    Reply
  13. Parvathi Rajan

    hi sir,
    i’m going to join the new job and the salary is 3.25 LPA……
    Should i pay the tax ?
    or will they detect the salary for IT before i received the salary?

    Reply
  14. greenindiaors@mail.com

    Sir i am going for GST registration then (my pan card is body of individuals (AAABG2348H)) which options is select for Constitution of Business, because not options are availabe for body of individuals ?

    Reply

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