PAN Card: The 10 digits of the PAN card are not random, each letter has a special meaning..

Most of us use our PAN card (Permanent Account Number) solely for tax filing or banking purposes. But did you know that the unique 10-digit code on your PAN card isn't randomly generated? In fact, there's a precise logic and pattern behind these letters and numbers, which the Income Tax Department follows. This code reveals your identity, status, and even the initials of your name.

Meaning of PAN Card Numbers (Structure of PAN Card Number)

The PAN card number is made up of 10 alphanumeric characters. Its format is: AAAAA 9999 A. Now let's learn what they mean.

First Three Letters (AAA): Random Alphabets
The first three letters of a PAN number are any combination of letters from A to Z. They are random and are entered solely to create a unique sequence.

Example: If someone's PAN number is ABCPK1234F, the ABC portion is a series automatically generated by the system.

The fourth character indicates the cardholder's status.
The fourth character of the PAN number is very important. This character (P/L/H/C, etc.) indicates the cardholder's status. This character indicates the category of person or entity the PAN belongs to.

Meanings of the fourth character:
P Individual
C Company
H HUF (Hindu Undivided Family)
A AOP (Association of Persons)
B BOI (Body of Individuals)
G Government Agency
J Artificial Juridical Person
L Local Authority
F Partnership Firm
T Trust
Example: If the fourth character of a PAN number is "P," it means the PAN is in the name of an individual, not a company or entity.

Fifth Character (First Letter of Surname)
The fifth character of the PAN card represents the first letter of your surname or last name. This makes it easier for the Income Tax Department to identify and match the individual.

For example, if someone's name is Rohit Kumar Sharma, the fifth character would be "S" (because the first letter of the surname Sharma is "S").

Next Four Digits (Numeric Part): Unique Coding
The middle four digits (9999) of the PAN number are entirely numeric and are generated sequentially by the system. This ensures that no two PAN numbers are ever the same.

Last Character (Check Code): For Verification
The last character of the PAN is a check digit, determined by an algorithm. It is used for verification purposes, allowing the system to quickly identify errors in data entry or documents. This is called the "check code."

Therefore, it is important to get a PAN card correctly.
Every digit and letter on the PAN card is part of your tax profile. Mistakes in the spelling of your name or date of birth at the time of application can affect the PAN pattern. Therefore, it is crucial to fill in all details correctly when applying for a PAN.

Some important points related to the PAN card

A person can have only one PAN card in their name.

The PAN number is valid for life.

A PAN is required for opening a bank account, filing taxes, and transactions exceeding ₹2 lakh.

A penalty may also apply for incorrect or duplicate PANs.

Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.