Structure of PAN

Posted on March 19, 2014 by SRRF

Dear Friends,
Greetings from Hyderabad!

I have come across many organizations which are registered as Societies but the PAN is reflecting the organizations as Trusts. This is based on the 4th letter in the PAN.

In case of online filing, the acknowledgment will also reflect the organization as Trust.

Looking forward to your feedback.

Thanks and regards,

—
B V Soma Sastry

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3 Responses to Structure of PAN

  1. Subhash Mittal says:
    March 27, 2014 at 7:50 am

    Dear SRRF Dialogue members,

    Using the opportunity given through this question, I give below a complete explanation of PAN structure followed by the Income Tax Dept.

    A typical PAN number is as follows AGDPT3670K.

    In this first three characters represent alphabetic series running from AAA to ZZZ. In the case mentioned above AGD becomes the series.

    Fourt character normally would represent the tax status of the organisation. For example, ‘P’ stands for ‘Individual’; ‘F’ stand for firm (or an unincorporated entity, normally a partnership); ‘C’ stands for company (incorporated entity); ‘H’ stands for HUF (Hindu Undivided Family); ‘A’ stands for AOP (association of persons); ‘T’ stands for Trusts (basically it includes all charitable organisations whether a Trust or a society).

    Fifth Character basically represents name (in case of ‘individual’ it is first character of the last name, while in case of organisations it is first letter in the name).

    Next fourt characters are sequentual number from 0001 to 9999, giving it uniqe identity. Thus in one series there would be a maximum of 9999 numbers. In the given example AGD is the series in which 3670 is the sequential number.

    Last character is an alphabetic check digit.

    In the query raised, basically ‘T’ represents tax status of the organisation and not the ‘status of legal structure’. Although sometime it is observed that fourth character in case of some charitable societies is ‘A’, this my guess is mainly because if the organisation has not yet filed for 12A, it may end up getting ‘A’ included in its PAN, representing AOP.

    Hope the above provides necessary clarification.

    subhash

    • B V Soma Sastry says:
      March 28, 2014 at 6:16 am

      Dear Subhashji,
      Greetings from Hyderabad!

      The entire PAN is very well explained. I would just like to know if the 4th letter being “T” for a Society or “A” for a Trust have any implication at the time of filing online tax returns.

      Thanks and regards,

      B V Soma Sastry

  2. CA. Adarsh Mohan says:
    March 22, 2014 at 1:24 pm

    Really this a problem- especilly when Filing E- Return throgh Software.

    Regards
    CA. Adarsh Mohan CA. Anand Mohan
    B.Com, F.C.A, DISA (ICAI) B.Com, A.C.A, DISA(ICAI), CPA(USA)
    Mohan & Mohan
    Chartered Accountants

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