In the world of Indian money, those 10 digits—a special combination of letters and numbers—have enormous influence. They serve as your key, enabling a range of financial operations and guaranteeing seamless exchanges. However, what do these 10 numbers stand for? Explore more to learn the background of your PAN card!
The PAN (Permanent Account Number) Card is essential for tax-related problems since it serves as a unique identity for people and companies in the nation. It must be included when submitting income tax returns and is required for some financial transactions such as opening a bank account, investing in mutual funds, and purchasing real estate.
What Is A PAN Number?
The Income Tax Department issues the PAN Card, a unique 10-digit alphanumeric code. For tax purposes, it serves as a unique identity for both persons and companies in India. The IT Department issues PAN cards to those who apply for them or to those to whom it assigns the number without an application. The PAN card is laminated.
How To Read A PAN Card Number?
A common PAN is AFZPK7190K, according to information found on the IT department’s official website.
- The first three letters in the PAN above, “AFZ,” are part of an alphabetic sequence that goes from AAA to ZZZ.
- The status of the PAN holder is represented by the fourth character of the PAN, or “P.” The letters “P” stand for Person, “F” for Firm, “C” for Company, “H” for HUF, “A” for AOP, “T” for TRUST, and so on.
- The initial character of the PAN holder’s last name or surname is represented by the fifth character, or “K,” in the PAN above.
- The next four letters, “7190,” are consecutive integers that range from 0001 to 9999.
- The last character, “K,” is a check digit in the alphabet.
Why PAN Card Is Required?
- Additionally, to get some government benefits like subsidies and pensions, an individual must have a PAN card.
- In India, the PAN card is recognized as a legitimate form of identification and acts as proof of identity.
- All financial transactions over a certain amount need a PAN card. For example, a PAN must be quoted for any banking system transaction involving at least Rs. 50,000.
- To put it simply, the PAN card is a crucial document for identification, financial transactions, and taxation for both persons and companies operating in India.
- The department may relate all transactions to itself thanks to PAN. These transactions consist of paying taxes, receiving TDS/TCS credits, filing income returns, engaging in certain activities, communicating, and so on. As a result, PAN serves as the individual’s tax department identity.
