Know your PAN Structure meaning of pan digits

Structure of the new series of PAN: The Permanent Account Number under new series is based on following constant permanent parameters of a taxpayer and uses Phonetic Soundex code algorithm to ensure uniqueness :-

i. Full name of the taxpayer;

ii. Date of birth / Date of Incorporation;

iii. Status;

iv. Gender in case of individuals; and

v. Father’s name in case of individuals (including in the cases of married ladies)

These five fields are called core fields, without which PAN cannot be allotted.

The PAN under the new series is allotted centrally by a customised application system (IPAN / AIS) for all-India uniqueness. The system automatically generates a 10 character PAN using the information in above five core fields.

PAN has the following structure:-

The fourth character of the PAN must be one of the following, depending on the type of assessee:

C — Company

P — Person

H — HUF (Hindu Undivided Family)

F — Firm

A — Association of Persons (AOP)

T — AOP (Trust)

B — Body of Individuals (BOI)

L — Local Authority

J — Artificial Juridical Person

G — Government

The fifth character of the PAN is the first character (a) of the surname / last name of the person. In the case of Personal Pan card, where the fourth character is “P” or (b) of the name of the Entity/ Trust/ Society/ Organisation in the case of Company/ HUF/ Firm/ AOP/ BOI/ Local Authority/ Artificial Jurdical Person/ Govt, where the fourth character is “C”,”H”,”F”,”A”,”T”,”B”,”L”,”J”,”G”.

The phonetic PAN (PPAN) is a new concept which helps prevent allotment of more than one PAN to assessees with same / similar names. AIS works out the PPAN based on some important key fields of an assessee using an internal algorithm. At the time of PAN allotment, the PPAN of the assessee is compared with the PPANs of all the assessees to whom PAN has been allotted all over the nation. If a matching PPAN is detected, a warning is given to the user and a duplicate PPAN report is generated. In such cases, a new PAN can only be allotted if the Assessing Officer chooses to override the duplicate PPAN detection.

A unique PAN can be allotted under this system to 17 crore taxpayers under each alphabet under each status (i.e. individual, HUF, Firm, Company, Trusts, Body of Individuals, Association of Persons etc.)

Permanent Account Number under new series: Since a taxpayer can make payment of taxes or have monetary transaction anywhere in India, a unique all India taxpayer identification Number is essential for linking and processing transactions / documents relating to a taxpayer on computers, as also for data matching. Therefore, a new series of Permanent Account Number was devised . Section 139A of the Act was amended w.e.f. 1.7.95 to enable allotment of PAN under new series to persons residing in areas notified by the Board. Applications for allotment of PAN under new series was made mandatory in Delhi, Mumbai and Chennai w.e.f. 1.6.96, and in rest of the country w.e.f. 11.2.98.

Interest on Late Payment of TDS

In case the assessee deposits the TDS Payment after the due date of payment of the tax deducted at source, he shall be liable to pay interest @1.5% for every month or every part of the month during which the amount is not deposited with the government.

Earlier, the Interest liable to be paid was 1% but this has been increased to 1.5% pm with a view to discourage the practice of delaying the deposit of tax after deduction.

Interest @ 1.5% is liable to be paid from the date on which the TDS was deducted and not from the date the TDS was due. 

For example: TDS was deducted on 25th June and the due date for TDS Payment was 7th July. The assessee fails to deposit the TDS by 7th July. In such a case, the Interest would be calculated from 25th June and not from 7th June.

Direct Online Corrections from TRACES website

The following types of corrections can now be done from the TRACES website directly:
PAN Correction
Challan Correction
Online corrections require the following simple steps:
Login into the TRACES website.
Go to ‘Request for the correction’ under ‘Defaults’ menu and request the file to be corrected.
After request, go to ‘Track correction Request’ and select the file in which you want to make the corrections.
Make the required corrections in selected file.
Click on ‘Submit your Processing’ to submit your corrections.
Click here to view the detailed tutorial on how to do Online Corrections.
The existing system of preparing and filing correction return will also continue without any change.

How to download Form 16 or 16A for Asstt. Year 2013-14 ?

TDS certificate is to be issued by each deductor who is deducting tax and furnished to the person from whose income / payment the tax has been deducted. The certificate should specify amount of tax deducted and rate at which it has been deducted.
TDS certificate is generated in TRACES on the basis of details provided by deductor in the quarterly TDS return. TDS certificate will be generated for deductee records with valid PAN (PAN present in the Income Tax Department database) in TDS statement
What are the types of TDS Certificates?
There are two types of TDS Certificates:
  • Salary Certificate (Form 16)
In case of Salaries, the certificate should be issued as Form 16 containing details of tax computation as well as tax deducted and paid. This refers to the details submitted in Form 24Q by deductor.
Part A of Form 16 which contains details of tax deducted and deposited by the employer can be downloaded from TRACES by deductor. A single Form 16 certificate will be issued for a given TAN, Financial year and PAN.
  • Non-Salary Certificate (Form 16A)
In case of Non-Salaries, the certificate should be issued as Form 16A containing details of tax deducted and paid. This refers to details submitted by deductor in Form 26Q and 27Q.
A single Form 16A certificate should be issued for a given Financial Year, Quarter, TAN and PAN. The Form 16A should contain details from both Form 26Q and 27Q for all sections (Nature of Payment).
How can I download Form 16 / 16A?
Deductors / collectors will have to register on TRACES to download Form 16 / 16A. After logging in to your account, click on ‘Form 16’ or ‘Form 16A’ under ‘Downloads’ menu. You can submit download request for maximum of 10 PANs at a time or do a bulk download for all PANs under the TAN for a particular Financial Year / Quarter.
Text file containing details of all requested PANs will be available in ‘Requested Downloads’ under ‘Downloads’ menu. User must pass the text file through TRACES PDF Generation Utility (which can be downloaded from TRACES) to create Form 16 / 16A PDFs for each PAN.
How can I download TRACES PDF Generation Utility?
TRACES PDF Generation Utility can be downloaded from TRACES in the following manner:
  • Without logging into TRACES
Click on ‘Deductor’ tab in the top navigation bar and click on ‘Download PDF Generator’ under Quick Links.
  • After logging into TRACES
Click on ‘Requested Downloads’ under ‘Downloads’ menu. Link to download the utility is provided on this screen.
The utility must be unzipped and installed on to your desktop. Clickhere to know more about the utility.
How do I use TRACES PDF Generation Utility to convert Form 16 / 16A text file into PDF?
After installing the utility on your desktop, double-click on the utility and open it. Select the text file for Form 16 / 16A downloaded from TRACES. Enter password for the text file and select the path where the output PDF files have to be saved.
If you want to digitally sign the Form 16 / 16A PDF files, select the digital signature and click on ‘Proceed’. The utility will convert the text file into PDF files for each PAN and save it in the selected output folder.
Is it mandatory to digitally sign Form 16 / 16A?
No, it is not mandatory to select digital signature while converting the text file into PDF as Form 16 / 16A can also be signed manually after printing.