PAN (Permanent Account Number) is considered to be one of the most relevant documents for the taxpayers nationwide. It is imperative to own a Permanent Account Number if someone wishes to categorize their financial transactions in a systematic way. The PAN system has simplified the taxation system of the country by providing a streamlined solution for tax payment. PAN system in India is similar to the Social Security Number system(SSN) in US which was primarily used to track the citizen’s transactions for security purposes but has been recently considered as a required document for filing tax returns. Once issued, a PAN card’s validity extends through a lifetime.
You can follow these steps to apply for PAN within 48 hours:
PAN is a unique 10-digit alphanumeric code that provides the details regarding the identity of a person by tracking all their financial transactions. PAN is generally in the format ABCDE1234F.
But, did you know that your PAN number encloses details to your identity?
The first three characters are random alphabetic combinations from AAA to ZZZ. The total number of possible combinations is 17,576. So the first three alphabets of your PAN are chosen from a pool of 17,576 combinations of three alphabets.
The fourth character represents the PAN owner's status. So, if the fourth character is P, it means that the PAN is alloted to an individual/person. Similarly, here's a list of what the fourth alphabet of your PAN card could mean.
The fifth character is the first letter of your surname. So, if your surname is Reddy, then the fifth character on you PAN would be R.
Just like the first three characters, the sixth to ninth characters are also the sequential combinations from 0001 to 9999. The number of possible combinations is 10,000.
The tenth character is worked out by applying a formula to the predetermined nine characters.