How To Read Your PAN Card Format? Decoding 10-digit Permanent Account Number

PAN Card

Read Your PAN Card Format: Pan Cards are very important documents for the Indian people as it is used in various financial-related matters and also for paying Taxes.

Just like the Aadhaar card it also acts citizen identity card and exercises great power in financial matters such as taking loans, taxes, Mutual funds, Opening a demat account, and many other important uses.

A Permanent Account Number (PAN) card consists of a 10-digit alphanumeric code which was introduced by the Indian Government back in 1972.

The IT Department gives out these plastic PAN cards. People can apply for them or the department will give them the number without an application.

Check Out: Missed Your SIP? Don't Worry, Here's What Happens Next

How to Read PAN Card?

As per the IT department, the PAN card consists of 10 alphanumeric digit codes such as “ABCPF7530P”

The first three letters in the PAN, which are "ABC," are taken between A to Z.

The fourth word of a PAN, "P," shows what kind of person owns the PAN. "P" for "Person," "F" for "Firm," "C" for "Company," "H" for "Huf," "A" for "AOP," "T" for "TRUST," and so on.

The fifth character, "F," in the above PAN is the first character of the person name who owns the PAN.

The four numbers that come after "7530" are in order, from 0001 to 9999.

The last digit is “P” which is just an alphabet character.

Check Out: Rulka Electricals IPO Day 2: Details On Public Subscrptions, GMP Today

The Importance of PAN Card

A PAN card is an essential document for everyone or any business that wants to get government perks like subsidies and pensions.

It acts as identity proof especially when you visit foreign countries, it is also required for financial transactions if you exceed the transaction limit in the banking system.

The PAN card helps the department keep track of all of a person's transactions, such as tax payments, TDS/TCS credits, income reports, and many other things.

It also serves as a person's unique ID with the tax department.

Every time you file an income tax return or write to an income tax on any issue, you need to have your PAN with you.

Check Out: Aadhaar Card Become Invalid If Not Updated For 10 Years? UIDAI Answers