What is PAN? PAN stands for Permanent Account Number and is a unique identification number issued by the Income Tax Department. Contains 10 characters including a combination of letters and numbers. PAN is usually issued in the form of a multi-layered plastic card called PAN card.
Let's take a closer look at the structure of a PAN number using an example.
The first three characters of PAN represent a series of letters from AAA to ZZZ.
The fourth character of PAN indicates the status of the PAN owner.
For example:
"P" stands for individual
"C" stands for company
"H" stands for Hindu United Family (HUF).
"A" stands for Association of Persons (AOP).
B stands for Bodies of Individuals (BOI).
"G" stands for government agency
"J" stands for Artificial Corporation
"L" stands for local government
F stands for Corporate/Limited Liability Company
"T" stands for trust
The fifth letter of PAN represents the first letter of the surname of the individual PAN holder. For non-personal PAN holders, it represents the first initial of the PAN holder's name.
The next four characters are a consecutive number from 0001 to 9999.
The 10th and last character of PAN is the alphabet check digit.
Follow the above steps to check the PAN is correct or not.
Having an accurate and valid PAN number is essential for various financial and tax transactions in India. It serves as a unique identifier for individuals, businesses, trusts and other entities for income tax purposes.