As per the provisions of Income Tax Act, 1961, Permanent Account Number (PAN) is issued to the assesses. With the help of the PAN Income Tax department link all the financial transaction of the assesse. PAN is a 10 digit alphanumeric unique number. Every digit present on the PAN card is special and carry its own significance. The first 5 characters of the PAN are Alphabets next 4 digits are numeric and last digit is the alphabet.
First Three Characters of PAN:
The first 3 characters on PAN card are Alphabets. These are random alphabets chosen with the help of probability.
The 4th Character of PAN:
Forth character of the PAN is unique and carries a special significance. It is also an Alphabet. It represent the organisation structure of assesse or PAN card holder. These are as follows:
The 5th Character of the PAN:
The fifth character of the PAN is also an Alphabet. It denotes the first Alphabet of the last name (Surname) of Assesse. Please note that in case of Artificial Person like Firms, Company, HUF, Trust, Society etc the entire name is the last name.
Next 4 Characters of the PAN:
The four numeric numbers in PAN are generated randomly based on the probability.
The Last Character of PAN:
The last character of PAN is Alphabet and is also generated randomly to make PAN more unique.
The new PAN application in case of Indian citizens is filed with Income Tax Department in Form 49A “Application for allotment of Permanent Account Number”. In case of not Indian citizens is filed Form 49AA “Application for allotment of Permanent Account Number” is to filed.
PAN is also used as an identity proof. As per Income Tax Act, 1961 every person should possess only one PAN number. It is illegal to have more than one PAN. Income Tax Department can take a legal action or impose heavy financial penalty for having more than one PAN.
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