How to decode your PAN number (It contains important information)

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PAN ie. Permanent account number is a 10 digit alpha numeric no., When it is issued this card is a laminated card given by the Income Tax Department.

A typical PAN card number is AABPS1205E.

Permanent Account Number is a 10 – digit number. 5 of the ten are English alphabets. The 4th letter signifies the status of the account holder.

Below are the status that 4th letter signifies:
J – Artificial Judicial Person
G- Government
C – Company
P – Individual
F – Firm
A – AOP (Association of Person)
H- HUF (Hindu Undivided Family)
T – Trust
B – BOI (Bank of Individual)
L – Local

The 5th letter of the PAN is the first letter of card holder’s surname. 4 number digits then falls between 0001 and 9999. This number is assigned on the basis of a series that is running at the time of application/registration for the PAN card. The last digit is an alphabet which is chosen randomly.

It is mandatory to quote PAN number on return of income, all correspondence with any income tax  authority. From 1st January 2005 it has been made mandatory to quote PAN on challan’s for any payments due to Income Tax Department.



It is also mandatory to quote PAN in all document’s related to financial transactions notified from time-to-time by the CBDT ie central board of direct taxex. Some of those transactions are  motor vehicle or payments in cash or sale and purchase of immovable property, of amounts exceeding Rupees 25,000/-to hotels and restaurant’s or in connection while travelling to any foreign country. It is also mandatory to mention PAN number for obtaining a telephone number or cellular telephone connection. Likewise, PAN has to be mentioned for making any time deposit exceeding Rupees 50,000/- with a Bank or Post Office or giving cash of Rs. 50,000/- or more in a Bank.

It is sole responsibility of a person who is receiving document relating to  financial transactions notified by the CBDT to ensure that PAN has been successfully quoted in the document.

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