We all are very familiar with the word PAN card in our day to day life. Today in India pan card or pan number has become a very important document for an individual too.
In this bloc I am going to discuss about what is Pan card?
Can an individual hold two PAN cards? If have two then what are the penalties?
First of all let us discuss
what is PAN number and what are the characteristics of the PAN number?
PAN number refers to Permanent Account Number. It is an alphanumeric number in 10-digits. PAN card relates to and qualify all the qualities to be a photo-identification card and it is also mandated for every financial transaction as per the rulers of Income Tax Department.
Means PAN No. is an essential document which is required for opening a bank accounts with bank, purchasing of a luxury items, planning for any foreign trip, dealing in securities and several other transactions which has any financial in nature. It is used mainly for tax related purposes.
The first five characters are letters from the English alphabet, the next four characters are numbers and the last character is also a letter.
Does any PAN card holder ever know whether these numbers and letters have any meaning or not? What do they stand for and how the combination is made unique for an individual?
Yes, the unique number of the PAN card have a meaning and represents something special about an individual. Here is the Classification
The 10 characters of your PAN can be divided into five parts.
First three characters:
The first three characters are alphabetic series between AAA to ZZZ. For instance, the beginning of the PAN card could be on random basis.
Fourth character:
The fourth character of the PAN card always represents the status. The fourth character for a majority of PAN holders is the letter “P”, which stands for “person”. The other nine letters that can represent are C, H, F, A, T, B, L, J, and G.
C stands for company. So if the PAN is in the name of your company, its fourth character.
H represents Hindu Undivided Family,
F stands for partnership firm,
A is for association of persons,
T stands for trust,
B for body of individuals,
L represents local authority,
J means artificial juridical person and
G stands for government.
Fifth character: The fifth character represents the first alphabet of your last name or surname.
For example, if the name of the individual is Kamal Kishore Bains , the fifth character will be B, so the fifth character of an individual's PAN card will be on his last surname’s first alphabet B.
But, if the individual happen to change his or her surname after marriage or due to any other reason, your PAN card number will remain unchanged.
Sixth to ninth characters:
The next four characters are sequential numbers between 0001 to 9999. Like as the first three characters on random basis
Tenth character:
The last and tenth character in the PAN card is an alphabetic check digit. Alphabetic check digit is generated by applying a formula to the preceding nine letters and numbers.
Now one come in my mind which is also important to discuss here that Why the classification is important?
This is an unique number issued by the income-tax department, to link all the financial transactions of an individual with the Tax department.
These transaction includes
Tax payments,
Tax deducted at source,
Returns of income/wealth/gift,
Specified transactions,
Correspondence and so on.
We can also say that PAN number acts as a unique identifier between persons for the tax department.
Now the important question is that can any body have two PAN cards?
If no? Is there any penalty?
The holding of more then one PAN card by an individuals is illegitimate and the government requested such individuals/HUFs/non-individual assessees to surrender any duplicate PAN.
If the assessees or individual fail in this regard then the government could send a legal notice and likely to be impose a penalty amounting upto Rs. 10,000.
Reasons to apply more then one card are,
1 Unintentionally
There are so many examples where an individual could unintentionally apply for new PAN card:
- change of address:
Most of the peaple think that if they have change in address they have to apply for a new pan card but the change in address of an individual does not requires to apply for a second or nrw PAN.number because the PAN number (permanent account number) is a permanent identification number and is valid all across India.
If any change in address the holder has to intimate to the authority concerned with proof of address.
2.Inadvertently
In case of inadvertent issue of more than one PAN number then the holder can visit http://incometax.sparshindia.com/pan/newPAN.asp, (an income tax official site) and furnish information regarding additional Permanent Account Numbers that are to be surrendered.
The pan number can be surrendered offline mode olso.
The holder can write an application bearing subject as ' change in PAN data' to the NSDL TIN facilitation centers or UTI PAN Centers and furnish the details of additional PAN number.
The application for surrendering additional PAN could also be addressed to his jurisdictional Assessing Officer.
In the application the holder need to specify his name, contact details, PAN card details to be retained and details of the PAN card that has to be surrendered.
The receipt or acknowledgment of the application should be retained as that serves as the proof of surrender of duplicate PAN.
Now the question is Why the holder should surrender duplicate PAN Card?
It is important whicj we discuss earlier that the holder should have to surrender the duplicate PAN Card.
Remember, not surrendering the additional PAN Card is a serious offense and can also lead to fines as applicable.
In this bloc I am going to discuss about what is Pan card?
Can an individual hold two PAN cards? If have two then what are the penalties?
First of all let us discuss
what is PAN number and what are the characteristics of the PAN number?
PAN number refers to Permanent Account Number. It is an alphanumeric number in 10-digits. PAN card relates to and qualify all the qualities to be a photo-identification card and it is also mandated for every financial transaction as per the rulers of Income Tax Department.
Means PAN No. is an essential document which is required for opening a bank accounts with bank, purchasing of a luxury items, planning for any foreign trip, dealing in securities and several other transactions which has any financial in nature. It is used mainly for tax related purposes.
The first five characters are letters from the English alphabet, the next four characters are numbers and the last character is also a letter.
Does any PAN card holder ever know whether these numbers and letters have any meaning or not? What do they stand for and how the combination is made unique for an individual?
Yes, the unique number of the PAN card have a meaning and represents something special about an individual. Here is the Classification
The 10 characters of your PAN can be divided into five parts.
First three characters:
The first three characters are alphabetic series between AAA to ZZZ. For instance, the beginning of the PAN card could be on random basis.
Fourth character:
The fourth character of the PAN card always represents the status. The fourth character for a majority of PAN holders is the letter “P”, which stands for “person”. The other nine letters that can represent are C, H, F, A, T, B, L, J, and G.
C stands for company. So if the PAN is in the name of your company, its fourth character.
H represents Hindu Undivided Family,
F stands for partnership firm,
A is for association of persons,
T stands for trust,
B for body of individuals,
L represents local authority,
J means artificial juridical person and
G stands for government.
Fifth character: The fifth character represents the first alphabet of your last name or surname.
For example, if the name of the individual is Kamal Kishore Bains , the fifth character will be B, so the fifth character of an individual's PAN card will be on his last surname’s first alphabet B.
But, if the individual happen to change his or her surname after marriage or due to any other reason, your PAN card number will remain unchanged.
Sixth to ninth characters:
The next four characters are sequential numbers between 0001 to 9999. Like as the first three characters on random basis
Tenth character:
The last and tenth character in the PAN card is an alphabetic check digit. Alphabetic check digit is generated by applying a formula to the preceding nine letters and numbers.
Now one come in my mind which is also important to discuss here that Why the classification is important?
This is an unique number issued by the income-tax department, to link all the financial transactions of an individual with the Tax department.
These transaction includes
Tax payments,
Tax deducted at source,
Returns of income/wealth/gift,
Specified transactions,
Correspondence and so on.
We can also say that PAN number acts as a unique identifier between persons for the tax department.
Now the important question is that can any body have two PAN cards?
If no? Is there any penalty?
The holding of more then one PAN card by an individuals is illegitimate and the government requested such individuals/HUFs/non-individual assessees to surrender any duplicate PAN.
If the assessees or individual fail in this regard then the government could send a legal notice and likely to be impose a penalty amounting upto Rs. 10,000.
Reasons to apply more then one card are,
1 Unintentionally
There are so many examples where an individual could unintentionally apply for new PAN card:
- change of address:
Most of the peaple think that if they have change in address they have to apply for a new pan card but the change in address of an individual does not requires to apply for a second or nrw PAN.number because the PAN number (permanent account number) is a permanent identification number and is valid all across India.
If any change in address the holder has to intimate to the authority concerned with proof of address.
2.Inadvertently
In case of inadvertent issue of more than one PAN number then the holder can visit http://incometax.sparshindia.com/pan/newPAN.asp, (an income tax official site) and furnish information regarding additional Permanent Account Numbers that are to be surrendered.
The pan number can be surrendered offline mode olso.
The holder can write an application bearing subject as ' change in PAN data' to the NSDL TIN facilitation centers or UTI PAN Centers and furnish the details of additional PAN number.
The application for surrendering additional PAN could also be addressed to his jurisdictional Assessing Officer.
In the application the holder need to specify his name, contact details, PAN card details to be retained and details of the PAN card that has to be surrendered.
The receipt or acknowledgment of the application should be retained as that serves as the proof of surrender of duplicate PAN.
Now the question is Why the holder should surrender duplicate PAN Card?
It is important whicj we discuss earlier that the holder should have to surrender the duplicate PAN Card.
Remember, not surrendering the additional PAN Card is a serious offense and can also lead to fines as applicable.
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