What is the difference between 49A & 49AA – PAN Card

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difference between 49A & 49AA

Difference between 49A & 49AA – PAN Card

PAN card is a government authorized document that enables Income Tax Department to link to all your financial transactions, such as TCS or TDS, tax payments, credits, specified transactions, or returns of wealth/income/FBT, etc. It is a PERMANENT government authorized document that remains for your lifetime and will never change with your marital status or address change.

What is the primary objective of PAN?

The primary objective of PAN card is to act us a universal identification key for tracking financial transactions and at the time of filing your Income Tax returns, tax deduction or some other communication related to Income Tax Department.

It also acts as a Proof of Identity or as a document for applying for a new landline telephone, applying for a new SIM card or when opening a new bank account.

What is the difference between 49A and 49AA PAN Application forms?

To apply for a PAN card, there are two types of application forms – 49A and 49AA. Each one varies as per Indian and foreign entities.

1. Form 49A – Indian Citizens / Entities

Indian Citizens/Entities are required to fill the PAN Application Form 49A by Income-tax Department for applying for a new PAN card. They have to fill and submit this form for allotment of their new PAN.

2. Form 49AA – Foreign Citizens / Entities

Indian Income Tax Department has also allowed foreign nations to apply for a new PAN card. But for a new PAN card, foreign citizens/entities have to submit the Application Form 49AA. This PAN card application form is for an individual who is not an Indian citizen, company/firm registered outside India, LLP formed or registered outside India, Associated Trusts that are formed outside India, Association of bodies/ persons or artificial juridical individual, or local authorities formed or registered outside India.

Who should apply for PAN?

⦁ Any individual who files income tax or who has a taxable income in India.
⦁ Foreign citizens who are liable to pay taxes in India.
⦁ Any businessman who has turnover, total sales, or gross receipt more than INR 5 lakh in the previous financial year.

What does a PAN Card contain?

Following are the details that are included on a PAN card of an Indian citizen:

⦁ PAN – 10 unique alpha-numeric digits
⦁ Your Name
⦁ Your Date of Birth
⦁ Father’s Name
⦁ Individual’s Photograph and
⦁ Signature of the PAN card holder

Details for Other Taxpayers:

⦁ PAN – 10 unique alpha-numeric digits
⦁ Their Name and
⦁ Date of Formation or Incorporation

Decoding the PAN number

As mentioned above, a PAN card includes ten alpha-numeric digits. Usually, a PAN card has five characters followed by four numbers and then again a character. For example, AXBTD1234S.
A X B T D 1 2 3 4 S

⦁ From series AAA to ZZZ represents the PAN holder’s status
⦁ P represents an individual
⦁ F represents a Firm
⦁ C represents a Company

The fifth character represents the first alphabet of an individual’s surname or last name. For example, if somebody’s name is Anil Sharma, then S will be the fifth character on that person’s PAN card. In case, you change your surname after marriage, the PAN card number will still remain the same without any further change. If you find any discrepancy, you must immediately bring it to the notice of the issuing authority in India.

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