As you know, Permanent Account Number or PAN acts as an Identification for Tax Payers in India. PAN is issued under Section 139A of the Income-tax Act. PAN is essential not only for paying Income tax but also when your hotel bill exceeds Rs50,000.
Not only this but you need PAN card if you want to purchase property for more than 10Lakh Rs.
On top of that, you need PAN Card to Start any Business in India. No Matter you are Indian Citizen or not, You need PAN Card to Start a business or Invest In business.
For example, If you are not India, You have to apply for PAN Card as a Foreigner because without PAN, You would not be able to Invest in Any business in India nor you’ll be able to Start any Business on Your Own.
PAN is just an alpha-numeric code containing 10 characters that hold the identity of the owner. Each PAN is unique to the person who owns it. It means, If the person is dead, the PAN held by the person is not given to someone else.
Coming back to the Point, Do you know How is PAN Made?
How is Permanent Account Number Made?
Permanent Account number or PAN is Alpha-numeric Code Containing 10 Characters. Example PAN Card Number would be ARLPA0061H. They are not Random Numbers and Characters, They all have Meant. How? Let us tell you.
The first five characters of PAN are Letters followed by 4 Numbers followed by 1 Character again.
First 3 Characters of PAN is Sequence of Letters from AAA to ZZZ. The fourth Character Indicates the type of PAN Holder. Here is the Meaning of each alphabet You can See on 4th Position of PAN.
- A – AOP
- B – Body of Individuals
- C – Company
- F – Firm
- G – Government
- H – Hindu Undivided Family
- L – Local Authority
- J – Artificial Juridical Person
- P – Individual
- T – Trust
- K – Krish
At Fifth Position, You will find the First Character of your Surname in the case of Individual or the First Character of Firm, Company, etc., in the case of non-individual.
The Last Character of PAN is Alphabetic Check Digit. Considering PAN is alpha-numeric, there are crores of Permanent Account Numbers that can be distributed to Crores of People who apply for pan card.
Once you apply for PAN Card, It will take about 30 days to get your PAN Delivered to your registered address. Your PAN Application will pass through many steps and you can follow our guide to check pan card status.
Let us know if you have any questions about this in the Comment section. We are here to solve your queries!