PAN Card Number Meaning: What is the Real Meaning of the 10 Digits on Your PAN Card? Uncover the Mystery of Each Letter and Number

PAN Card Number Meaning: The PAN (Permanent Account Number) card is an essential document for every taxpayer in India. It is required whenever one files income tax returns, buys property, makes high-value transactions, or invests in mutual funds, shares, and more. However, most of us still don’t know much about this multipurpose identifier. The meaning behind its 10-character alphanumeric code remains a mystery to many.

In this article, we will understand what a PAN card is, what the 10-character alphanumeric code signifies, and the different types of PAN holders.

What Is a PAN Card?

PAN is a unique identifier that links all your financial transactions and proceedings. It is a 10-character alphanumeric identifier issued by the Income Tax Department of India to individuals, companies, and other entities. This card is mandatory for filing income tax returns, purchasing property, conducting high-value transactions, and making various investments. It serves not just as an identity proof but also as a crucial record of one’s financial activities.

Understand the Meaning of Your PAN Number

Let’s understand the structure of a PAN number with an illustration. For example, let’s consider the PAN Number ‘ABCDE1234F’.

• First Three Characters: The first three characters, ABC, signify the alphabetic series running from AAA to ZZZ. These are randomly assigned by the Income Tax Department

• Fourth Character: The fourth character, D, indicates the type of PAN holder. This can be one of the following:

  • 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 – Firm
  • T – Trust

• Fifth Character: The fifth character, E, represents the first letter of the holder’s last name (surname). In the case of an entity or company, it is the first letter of the entity’s name

• Next Four Numbers: The subsequent four digits, 1234, are sequential numbers running from 0001 to 9999

• Last Character: The last character in the PAN, F, is an alphabetic check digit. It is generated by a formula based on the preceding nine characters and helps in verifying the authenticity of the PAN number.

How to Verify Your PAN Card

You can easily verify your PAN card online by visiting the Income Tax Department’s e-filing portal.

• Step 1: Go to the official Income Tax e-filing portal website.
• Step 2: On the homepage, find and click on the ‘Verify PAN Status’ link.
• Step 3: Enter your required details such as your PAN number, full name, date of birth (DOB), and mobile number.
• Step 4: Verify with the OTP sent to your mobile number and click on ‘Validate’ to proceed.