AO Code Vs AO Types In PAN Card Application

PAN Card Application: AO Code and AO Type

What is a PAN card? PAN stands for the permanent account number. PAN is a unique 10-digit alphanumeric identity that has been allotted to each taxpayer by the income tax department by the authority of the central board of direct taxes in India. While filling the PAN Card Application there are AO Codes and AO types which most people find it very difficult to find, in this article we will learn what are AO Codes and AO Types and how to fill it correctly in your PAN application card?

PAN also serves as proof of your identity and is mandatory for performing financial transactions such as receiving a taxable salary, and professional fees. It is also needed for purchasing assets above the specified limit and purchasing mutual funds.

What is the purpose of a PAN? The main purpose of pan is to keep track of all financial transactions so that tax evasion can be avoided. The PAN number of a person remains the same with all changes of address in India.

Who must apply for a PAN? Anybody that has taxable income in India including foreign nationals that pay taxes here must apply for getting a PAN. It includes people running a business here (be it retail, services, or consultancy) whose total sales/turnover in the preceding year was more than 5 lac rupees.

Advantages of getting a PAN number and card:

1. Payment of direct taxes
2. Ability to file income tax returns
3. Avoiding taxes at a higher rate than due
4. Sale and Purchase of immovable property valued 5 lac or more
5. Sale and purchase of vehicles other than two-wheelers
6. Payment to hotels and restaurants exceeding Rs.25000 at one time
7. Paying in cash an amount more than Rs.25,000 to any company in connection to traveling to any foreign country
8. Payment of Rs.50,000 or more to reserve bank of India for acquiring bonds
9. Allowance of payment of Rs.50,000 or more to a company for buying bonds or debentures
10. Depositing more than Rs.50,000 to a single bank in one day
11. Payments more than 5 lac for buying billions and jewelry
12. Purchasing of mutual funds

How to apply for a PAN number and Card:

In order to apply for a PAN card, there are two forms currently available

• Form 49A
• Form 49AA

More information about the forms is available at the official website incometaxindia.gov.in

Now, you can apply for PAN through the online portal at the cost of 93 Rupees or locate an office of the Income Tax Department or National Securities Depository Limited (NSDL) in your city through their online locator.

For the Internet process, the dues can be paid through internet banking, credit card, or debit card.

For the physical process, you will need 3 copies of your ID card/ proof of identity and address. Payment can be made through cash cheque or draft.

For both the process types you can track the processing status online.

Foreign Citizens/entities Form 49AA:

The PAN card application form 49AA is for citizens not belonging to India, LLPs registered outside of India, and companies registered outside India. It also included applications for firms and trusts formed outside India.

Indian Citizens/entities Form 49A:

Indian citizens and organizations, local companies, firms, and Hindu joint families, etc. have to submit their application for a new PAN card through the revised form 49A as has been prescribed.

The form that you fill does not put you in different circumstances. You will not be charged differently. The only difference in charges depends usually upon the residential status.

AO code:

While filling the application form for getting a PAN card, there is a section where you are required to enter your AO code. AO stands for assessing officer and this is meant to identify under the jurisdiction of which department the application form will fall.

This AO code is a combination of 3 things

1. Area code
2. AO type
3. Range code

AO number

Area Code:

For the purpose of identifying geographically, the location where the company is present, it is given an area code consisting of three letters.

AO type:

This helps the tax department identify whether the application belongs to an Indian citizen or a company or a non-Indian resident etc.

Range Code:

Based on the address where the PAN card holder lives, they are assigned a Range code to identify the ward or circle in which the person lives.

AO number:

It is a numerical value published by the NSDL as the last part of your AO code.

Finding your AO code:

A list of AO codes is provided by the department at the following address:

https://tin.tin.nsdl.com/pan/servlet/AOSearch

The applicant will have to search for their AO code by selecting their city based on their home or office address.

Some of the cities have additional information provided regarding their AO code for identifying it correctly.

The AO code shows under the jurisdiction of which AO the PAN application falls. The AO code may change depending upon the policy of the department but the PAN code will always remain the same.

MakeUp of a PAN number:

PAN is a 10 digit alphanumeric number where,

The First three letters are randomly selected anywhere between AAA and ZZZ.

The Fourth character represents the status of the PAN cardholder.

• C stands for Company
• P stands for Person
• H stands for Hindu Undivided Family (HUF)
• F stands for Firm
• A for Association of Persons (AOF)
• T for AOP (Trust)
• B for Body of Individuals
• L for Local Authority
• J for Artificial Juridical Person
• G for Government

The fifth character of the PAN is the surname’s initial. In case a person changes his surname, the PAN does not change as it is issued for life.

The 6th to 9th characters are in sequence running between 0001 and 9999. Randomly selected.

The tenth character is generated by applying a formula on the preceding numbers to come up with a check digit.

Final Words:

PAN cards are an essential part of the taxation and identification system in India and having one has its fair share of benefits so if you fall into the range of people that are eligible for it, you should surely apply to keep in view the above procedure and helpful tip.

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