PAN Full Form, What is PAN?

PAN full form Permanent Account Number.

It is a number or a card issued to all judicial entities by Income Tax Department, Govt. of India under Section 139A of Income Tax Act, 1961.

Nowadays, PAN Card is a must have document for every firm, organization and person. It is used to open bank account, completing KYCs and even digitals wallets now needs linked to your PAN.

PAN number, the 10 digits unique alphanumeric number, is designed as follows:

1.      The first three characters, which are alphabets, is a combination of letters in the format AAA to ZZZ. The Income Tax Department allocates the digits randomly and is a combination of the letters such as SRG or XRF.

2.      The fourth digit is an essential character and reveals a lot of information about the holder. The character identifies the account holder’s category. For example, letter “P” in the number states that the holder belongs to the “individual” category, as designated by the I.T. Department. The following is the status assigned by the department authorities based on the details received through the application = Individuals F = Firm C = Company H = HUF A = AOP (Association of Persons) T = Trust G = Body of Individuals L = Local J = Artificial Judicial Person G = Government

3.      The fifth character in the number is the first letter of the account holder’s surname or last given name. For instance, if the applicant’s name is Prateek Sharma, the fifth letter, in this case, will be S.

4.      The four numeric digits next in the number are a randomly selected numbers between 1000 and 9999.

5.      The final character in the account number is the result of the calculation based on a formula that accommodates all the nine characters.