| Primarily, the PAN or the Permanent Account | | | | Mandatory for ready identification |
| Number is issued by the Income tax department | | | | Depending on what you are and your status as |
| of India to bring into the taxpaying net all those | | | | an assessed, the 4th character of the Pan |
| whose incomes are taxable. It is like an | | | | number is a ready determinant. You could be |
| identification number for Indians and has to be | | | | assessed for income tax purposes as a person, a |
| obtained from the income tax department | | | | company, a company or firm, HUF or Hindu |
| regulated by the CBDT or the Central Board of | | | | undivided Family, an Association of persons or |
| Direct Taxes. Earlier, a PAN card was required for | | | | AOP, the government, body of individuals or BOI, |
| getting a phone connection, but nowadays, you | | | | local authority or an artificial juridical person. By |
| would need it for opening a bank account, taking | | | | the fifth character of the PAN card you can easily |
| fees for professional services and also for your | | | | identify the surname of the person to whom it |
| salary. | | | | belongs. Even if you don't pay any income tax or |
| More of a social security number from India | | | | do not fall under the tax ambit, you can hold a |
| If you are looking for a similarity, it is like the | | | | PAN card. If you don't need to pay any taxes, |
| social security number in the United States that is | | | | you could even be assessed although your income |
| issued to the legal residents of the US and the | | | | tax liability could be zero. |
| citizens. Earlier, many people used to earn money | | | | It is not only applicable if you earn an income as |
| and avoid paying taxes in India. It led to a parallel | | | | the income tax department in India requires and |
| economy where the state was robbed of its due | | | | has made a PAN card mandatory for everyone. |
| revenue. To counter the problem, the | | | | You would need it for trading in stocks, buying or |
| government came up with a ready identification | | | | selling properties, paying outstanding taxes to the |
| number that has to be quoted for all financial | | | | income tax department or even for consulting |
| transactions. It was impossible for the | | | | with the department. Nowadays, even applying |
| government to keep a tab on all the monetary | | | | for a visa requires you to have a PAN card. |
| dealings that were taking place. | | | | Primarily, it is meant of carrying on any type of |
| Among the most unique features of the PAN | | | | financial transaction in India. You have to quote |
| card is that the number does not change even if | | | | the PAN number allotted to you in every |
| you shift your residence form one part of India | | | | document that you sign. |
| to the other. The number has a total of 10 | | | | It empowers the income tax officials to keep |
| alphanumeric characters where the letters form | | | | track of any undisclosed income or transactions |
| the first 5 characters, numbers comprise the next | | | | that you may carry out during an accounting |
| 4 and the last is again a letter. Every income tax | | | | year. You can fill out form 49A and submit it to |
| payee in India is easily identifiable by the PAN | | | | the tax authorities near you or render help from |
| number he or she holds. The authenticity of a | | | | some private agents that help out non resident |
| PAN card is determined by the structure of the | | | | Indians and persons of Indian origin to obtain a |
| numbers and in case a person's PAN card does | | | | PAN card. After applying for a PAN card you can |
| not conform to the pattern, the card would be | | | | keep track of the process and the status it is in |
| deemed invalid. It also carries a recent headshot | | | | by checking out the website. |
| of the holder. | | | | |