What is Pan Card?
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| New Pan Card Degisn |
PAN,
or permanent account number, is a unique 10-digit alphanumeric identity
allotted to each taxpayer of India by the Income Tax Department under the
supervision of the Central Board of Direct Taxes. It also serves as an identity
proof of Indian Govt. PAN is unique to
each individual. It would be something like this - ABCDP4678H. This number
enables the department to monitor financial transactions of the holder. It also
helps the Income Tax department to keep track of the tax paid or evaded by an
individual. The first ever such card was issued in 1964. It is also
issued to foreign nationals such as investors.
Through
this method, all tax related information for a person is recorded against a
single PAN number which acts as the primary key for storage of information.
This is shared across the country and hence no two people on tax paying
entities can have the same PAN.
By
this way, Taxpayer get life time validity for this Pan Card. Taxpayer/ Pan
Holder can change their address, name, date of birth in pan card anytime
with a valid proof.
Structure of Pan Card:
Permanent
Account Number or PAN is effective because of its uniqueness and a valid proof
by govt. It is an interesting thing to learn about the structuring of PAN
in details. There is a lot of hidden information that goes into the making of
the Permanent Account Number.
PAN
is generated automatically by the online system by taking into account the
information furnished by the PAN applicant.
·
First Three Characters (1st to
3rd Letter)
The
first three characters of PAN are a sequence of alphabets from AAA to ZZZ
·
Fourth Character (4th Letter)
The
fourth character signifies the type of taxpayer that you are.
ü A —
Association of Persons (AOP)
ü B -
Body of Individuals (BOI)
ü C -
Company
ü F -
Firm
ü G -
Government
ü H -
HUF (Hindu Undivided Family)
ü L -
Local Authority
ü J -
Artificial Judicial Person
ü P -
Individual
ü T - AOP
(Trust)
ü K -
Krish (Trust krish)
So
if an individual obtains PAN Card, then his/her PAN will have the fourth
character as ‘P’ which stands for individual taxpayer.
·
Fifth Character
The
fifth character in PAN is the first letter of your surname. So, if a person is
named ‘Rajesh Khanna’, the fifth character of his PAN will be ‘K’
·
Last Character
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