PAN to be common identifier for digital systems

• Finance Minister Nirmala Sitharaman said Permanent Account Number (PAN) will be used as a common identifier for all digital systems of specified government agencies.

• The move would help in further promoting ease of doing business in the country and it will be facilitated through a legal mandate.

• For obviating the need for separate submission of same information to different government agencies, a system of ‘Unified Filing Process’ will be set up. Such filing of information or return in simplified forms on a common portal, will be shared with other agencies as per filer’s choice.

What is PAN?

• PAN is a ten-digit unique alphanumeric number issued by the Income Tax Department to a person, firm or entity. PAN is issued in the form of a laminated plastic card.

• PAN enables the department to identify/ link all transactions of the PAN holder with the department. These transactions include tax payments, TDS/TCS credits, returns of income, specified transactions, correspondence, etc, and so on.

• It facilitates easy retrieval of information of PAN holder and matching of various investments, borrowings and other business activities of PAN holder.

The ten characters of PAN

Out of the first five characters, the first three characters represent the alphabetic series running from AAA to ZZZ.

The fourth character of PAN represents the status of the PAN holder.

This means:

• P for Individual

• C for Company

• H for Hindu Undivided Family (HUF)

• A for Association of Persons (AOP)

• B for Body of Individuals (BOI)

• G for Government Agency

• J for Artificial Juridical Person

• L for Local Authority

• F for Firm/ Limited Liability Partnership

• T for Trust.

Fifth character of PAN represents the first character of the PAN holder's last name/surname in case of an individual. In case of non-individual PAN holders, fifth character represents the first character of PAN holder’s name.

Next four characters are sequential numbers running from 0001 to 9999.

Last character — the tenth character — is an alphabetic check digit.

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