PAN Card:In today’s time, permanent account number (PAN) card has become a compulsory document just like Aadhaar card, especially when it is about financial transactions. This 10-conversion of letters and numbers is necessary not only for individuals but also for companies and organizations.
PAN card is required for all these from filing income tax returns to investing in the stock market, opening property, opening bank account or taking loan. But do you know that this 10 -digit code is hidden many secrets including your financial identity? Let’s know the importance of each digit of PAN card and the mathematics behind it.
PAN card structure: meaning of each digit
The PAN card is issued in a specific format, such as abcde1234f. Each part of this 10-conductive code contains specific information:
- First three letters (AZ): This is a category of English alphabet (from AAA to ZZZ). It is a sequential chain, which makes PAN unique.
- Fourth letter: This letter refers to the type of pan holder. For example, someone, company, trust or government organization.
- Fifth letter: This letter is the first letter of a person’s surname or the name of an organization.
- The next four digits (0001 to 9999): This is a sequential number, which is produced randomly.
- Last letter: It is a check point (alphabet), which is used to verify the authenticity of the pan.
Mystery of fourth letter: type of pan holder
The fourth letter of PAN is an important indicator, which reflects the category of holder. Its details can be seen in the table below:
| Code | Holder type |
| P | Person |
| C | Company |
| H | Hindu undivided family (HUF) |
| A | Association of individuals (AOP) |
| B | Body of Person (BOI) |
| Yes | government agency |
| J | Artificial judicial person |
| l | local authority |
| F | Firm/partnership firm |
| Tea | faith |
Why is PAN card mandatory?
- PAN card is not only a document related to income tax, but it is also a symbol of your financial identity. Its main uses are as follows
- File in income tax returns: It is not possible to file income tax returns without PAN.
- High value transactions: PAN is required for investment in property, vehicle, stock market or mutual funds.
- Banking services: PAN is mandatory for opening bank account, obtaining credit cards or getting loans.
- KYC Process: PAN is an important document for identification verification in financial institutions.
- Prevention of black money: The government keeps an eye on the financial activities of individuals through PAN, which helps to prevent black money.
How to get a PAN card?
If you have not yet made a PAN card, you can easily make it online or offline. The website of NSDL or UTIITSL can be used for online process, where apply can be made by filling the form and uploading the necessary documents. The nearest PAN center or post office can be contacted for offline.
