Know your PAN

08-1431084190-22-1429679058-pan

 What is a PAN?

PAN, or Permanent Account Number is a unique 10 digit alphanumeric that is given to each taxpayer by the Income Tax Department. It is a mandatory requirement for all financial transactions such as receiving salary, investing in mutual funds and also purchasing assets above a certain specified limit. The number helps track financial transactions and thereby prevent tax evasion.

Explaining the 10 digits…

The first 5 characters of the PAN are letters and the next 4 numbers, and the last one is an alphabet. The meaning of each number has been explained further.

  • First three characters are alphabetic series running from AAA to ZZZ as issued by IT Department.
  • Fourth character of PAN represents the status of the PAN holder.

C — Company
P — Person
H — HUF (Hindu Undivided Family)
F — Firm
A — Association of Persons (AOP)
T — Trust
B — Body of Individuals (BOI)
L — Local Authority
J — Artificial Juridical Person
G — Government

  • Fifth character represents first character of the PAN holder’s last name/surname.
  • Next four characters are sequential number running from 0001 to 9999.
  • Last character in the PAN is an alphabetic check digit.

 

Who needs to have a PAN?

  • Anybody who earns a taxable income in India, including foreign nationals who pay taxes here. NRI’s who wish to invest in India also require a PAN.
  • Anybody who runs a business (be it retail, services or consultancy) that had total sales, turnover or gross receipt exceeding Rs 5 lakh in the previous financial year.

Some common transactions that require a PAN include purchase of a vehicle other than a two-wheeler; sale of purchase of immovable property above Rs.5lakh or more; any mutual fund purchase.

Application Process:

CAMS is empanelled by NSDL for accepting the PAN applications through its PAN / TIN Facilitation centres. CAMS has more than 140 facilitation centres across the country. The centres accept applications for PAN / TIN and also take up PAN update requests. Click here to know more.

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About CAMS:

Computer Age Management Services (CAMS) is India’s premier Mutual Fund Transfer Agency serving over 60% of assets of the industry across 15 Mutual Funds. Leveraging superior technology, CAMS brings several innovative services to Mutual Fund investors and distributors. CAMS is also a service partner to leading insurance companies, banks, NBFC’s and alternate investments funds. To know more visit www.camsonline.com .

 

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Published by

Sudarshan Ranganthan

Breaths Investments, Suggests Wealth Creation Ideas, Lives on Law Of Attraction

2 thoughts on “Know your PAN”

  1. I am surprised how a TA industry leader like CAMS can publish write ups in such poor English. They should invest in proof reading and content editing before shooting something like this online.

    Quote:

    Permanent Account Number is a unique 10 digit alphanumeric that is given to each taxpayer by the Income Tax Department. It is a mandatory requirement for all financial transactions such as receiving salary, buying mutual funds and also assets above a certain limit

    Unquote:

    Seriously? Put contributors who know to articulate stuff in proper English, please!

    Like

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