How PAN card number is generated?

PAN Card:-

Permanent Account Number (PAN) card is a unique code, that is to say, it is an identification of a person or company for those who pay Income Tax. PAN is an electronic system that deals with all tax-related information of a person/company that is recorded in a single PAN unique number. Meanwhile, it acts as the key for storage of information and is shared across the country. Hence, no two taxpaying persons can have the same PAN. It is issued to any individual/companies who pay Tax in India and also issued to foreign people, who pay Tax in India. PAN number is a unique 10 character code, for instance, ACHPK7789K and is valid for lifetime. So, do you know how this unique number is generated for each person? No right, let’s move onto it.

How PAN card Number is generated?

A  Permanent Account Number would look like ACHPK7789K. Therefore, there is a logic behind it. The first five characters are letters, and four are numerals, and the last character is also a letter.

The logic is a follows:-

  • First three characters i.e. “ACH” are alphabetic series running from AAA to ZZZ.
  • Fourth character i.e. “P” represents the status of the PAN holder   For instance:-
    • A – Association of Persons
    • B – Body of Individuals
    • C – Company
    • F – Firms
    • G – Government
    • H – Hindu Undivided Family
    • L – Local Authority
    • J – Artificial Judicial Person
    • P – Single person
    • T – Association of Persons for Trust
  • Fifth character i.e.”K” is the first character of either
    • of the last name of the Person.
    • Name of the Company or Trust.
  • Next four characters i.e.7789 are numeral digits.
  • Last character i.e. “K” is an alphabetic character to verify the validity of the current code.

PAN card also contains other information such as:-

  • Name of the person
  • Name of the father of the person
  • Date of birth
  • PAN Number
  • Signature of the person
  • Photo of the person

PAN is a unique identification code that enables each taxpaying person of India with the following applications:

  • Proof of Identity
  • Proof of Address
  • Required for Filing Taxes
  • Registration of Business
  • Financial transactions
  • Eligibility to open Bank Accounts
  • Phone Connection
  • Gas Connection
  • Mutual Fund

There are millions of Taxpayers in India and some persons/Companies have been able to issue multiple Cards by fraud. It is illegal to obtain multiple PAN cards. Additionally, illegal immigrants have got PAN cards issued to them and most have been issued by PAN card agents. In short, it’s still unnoticed and multiple PAN cards are been increasing.

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