What are the Different Types of PAN Cards in India?

A PAN (Permanent Account Number) refers to a 10-character alphanumeric identifier used by the Income Tax Department to identify all taxpayers in India. The PAN system of India identifies all the tax-paying entities, including companies and individuals.

A PAN card is essential for most of the monetary transactions above a certain limit. A PAN card is also compulsory for filing taxes, receiving tax refunds, and registering businesses. Hence, both individuals and businesses need to apply for a PAN card.

If you are wondering how many types of PAN cards there are, we have answered this in this blog. We have mentioned the types of PAN cards depending on the entity. We have also mentioned the types of documents required to apply for a PAN card.

What are the Types of PAN Cards in India?

PAN cards can be issued to any individual or entity liable to pay taxes, such as individuals, NRIs, HUFs, Companies, and Institutions. The 4th digit represents the type of PAN holder on the PAN, which is different for each type of PAN card.

Here are the different types of PAN cards and their represented letters:

• P: Individuals
• B: Body of Individuals (BOI)
• A: Association of Persons (AOP)
• H: Hindu Undivided Family (HUF)
• C: Companies
• E: Limited Liability Partnerships
• F: Partnership Firms
• T: Trusts
• G: Government Agencies
• L: Local Authority
• J: Artificial Juridical Person

Here is an example of a PAN: BHPCA5845D, and understand what type of PAN it is:

The first three characters are in the sequence from AAA to ZZZ, the fourth character, C, represents that the given PAN is for the company. Then, the fifth character represents the first letter of the surname for individuals, and for companies, the initial letter of the company's name. The next four numbers after that are the numbers in a series from 0001 to 9999. And, the last letter in an alphabetic digit check.

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Understanding PAN Card For Individuals

All the applicants who are residents of India, NRIs, or foreigners can apply for this type of PAN card. The name of the person, photograph, father/mother name, signature, QR code, date of birth, date of issue, and PAN are present on this type of PAN card.

Any resident Indian, including minors and students, can apply for a PAN card by submitting Form 49A. The Non-Resident Indians (NRIs) and Overseas Citizens of India (OCI) can apply for their PAN card by filling out Form 95 & 96 (formerly Form 49AA).

To obtain a PAN card for individuals, you need to have a valid proof of identity, date of birth, and address. Minors and Students are also eligible to apply for a PAN card, especially if they are nominated for a property/investment.

Understanding PAN Card for Non-Individuals

All entities, like firms, companies, and LLPs, cannot register their business in India without a PAN card. Additionally, the companies that are registered outside the country will require a PAN card if they need to pay taxes here.

PAN cards for businesses do not have any person's name, photographs, date of birth, signature, or the name of father/mother. They have the name of the organisation in place of the cardholder's name and the incorporation date of the entity instead of the date of Birth.

Indian Companies, NGOs, local bodies, partnership firms, trusts, etc., need to file the Form 49A, and the foreign entities need to file the Form 49AA.

Who Needs to Obtain a PAN Card in India?

Here is the list of various entities that should have a PAN card under Section 139A of the Income Tax Act:

• Any individual with an overall annual income of more than the amount exempted from tax.
• Anyone who wants to carry out financial transactions that require a PAN.
• Any business organisation, irrespective of whether it is an LLP, sole proprietorship, partnership firm, etc.
• A charitable trust that is liable to pay returns.
• Any person whose profession/business has a taxable income annually and make fianncial transaction above the specified limits.
• Anyone who wants to open a bank account or NBFC (other than a basic savings account or time deposit).
• Any non-individuals whose total value of all the financial transactions in a financial year is more than 2.5 lakhs.

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What are the Documents Required to Apply for PAN Card?

The documents required to apply for a PAN card depend on the type of applicant. Here is the list:

Individuals

Proof of Identity (Aadhaar card, voter ID) and Proof of Address (voter ID, utility bills, bank account statement, etc.)

Hindu Undivided Family

An affidavit issued by the Karta of the HUF stating the name, address, and father's name of the coparcener. Valid proofs of age, address, and identity for the individual PAN.

Applicants who are not Indian Citizens

Indian Passport, copy of OCI, PIO issued by the Government of India, NRE bank statement, bank statement from the resident country, and a copy of the visa issued by an Indian company (address proof).

Companies

Registration Certificate issued by the Registrar of Companies.

Association of Persons

Registration Certificate number issued by the Registrar of Co-operative Societies, and government-issued IDs.

Firms and LLPs

Copy of Registration Certificate and Partnership deed.

Trusts Formed/Registered in India

Copy of registration certificate issued by the Charity Commissioner.

Final Word

All the tax-paying entities in India, including foreigners, NRIs, companies, trusts, or NGOs, need to obtain a PAN card. It is mainly a financial identity/tax identifier and allows you to perform large transactions. Apart from this, a PAN card also allows you to file taxes and receive tax refunds. The format of the PAN card shows what entity it represents.

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