Wonder, How Pan Card Number is Generated?

The most important personal identity card used in India is the Permanent Account Number (PAN). The PAN is issued by the Central Government of India, Tax Department under the Income Tax Act 1961. You can apply for PAN Card from the website of the Income Tax Department of India.

The PAN is mandatory for filing income tax returns, investing in financial markets, investing in the real estate market, banking facility, applying for a visa, or passport. All taxpayers in India pays the tax on reference with PAN.

So, How the 10 digits unique identity number is generated? This number is not generated randomly. It has perfect logic behind it and we will explore this in the next few minutes…

PAN for example ABCPK1234Z

We will first divide this number into 5 parts:

1. First 3 letters are randomly generated from AAA to ZZZ.

2. Fourth letter tells us, what type of PAN Holder you are?

Means, there are several types of PAN holders.

P - for Individual

T - for Trust

C - for Company

G - for Government Agency

H - for Hindu Undivided Family

A - for Association of person

B - for Body of Individuals

J - for Artificial Juridical Person

L - for Local Authority

E - for Limited Liability Partnership

F - for Partnership Firm, and so on

Check your personal/individual PAN, you will find a P letter on the fourth index.

3. Fifth letter is nothing, but the first letter of your last name/ surname.

4. The series of 4 numbers is generated from 0001 to 9999.

5. The last letter of PAN is generated by the secret formula based on the nine characters of PAN. You can simply say it is an alphabetic value of nine characters.

And your PAN is generated! Isn’t it is a good fact to know?

What are the benefits of PAN?

1. Tax deductions

2. Claiming tax returns

3. Getting a loan

4. Setting up a business

5. Benefit for country’s government

A thing to know before goodbye is, the Income Tax Department can charge a penalty for having multiple PAN’s or for not having PAN too.

That’s it...

- Sarthak Niwate