The Income Tax Department has prescribed a new format for PAN Cards issued after 1st January, 2017. The changes made to the new PAN Card have been listed below:
The first series of PAN was launched in the country, in the year 1972. However, there were certain issues with that series which resulted in the issuing of the current PAN structure than we have.
The old method of registering taxpayers which involved the General Index Register Number or the GIR was replaced by Permanent Account Number in the year 1972. However, this was the old series of PAN which still needed some improvements and had drawbacks as listed in the section above. Hence, in the year 1995, under an amended section 139A of the Income Tax Act, the new series of PAN was rolled out by the Income Tax Department.
The new PAN series facilitated the following points which were earlier not included in the old series of PAN –
Earlier, before the concept of PAN was introduced, there was a GIR number assigned to taxpayers which was basically a manual system and as such was unique only within a ward or under a particular assessing officer. However, the number was not unique at the country level. In the year 1972, the concept of PAN was rolled out by the Indian government and was made statutory under section 139A of the Income Tax Act, 1961.
The GIR number was allotted by the Assessing Officer to a tax payer and it included the Assessing Officer’s information as well.
Another problem with the GIR system was that it was not a unique number. A GIR was unique only in that particular ward/circle, resulting in errors or the chances of miscalculations during tax assessment.
The PAN card in its present form was first introduced in 1972, as a way to overcome these problems. Initially a voluntary process, it was made mandatory for all tax paying individuals in the country in 1976.
The initial PAN number allotments were made manually, and to avoid duplication, each ward/circle received a certain set of numbers. This series was abandoned in the year 1995 due to a host of problems associated with it.
In spite of these changes, the first avatar of the PAN card met with some difficulties, as mentioned below: