PAN Card: With this, the department gets to know the transactions of all PAN holders. It also gives information like tax payment, TDS/TCS credit, income tax return, specific transactions etc.
PAN Card card has now become very important for every Indian citizen. This card is an important information for its holder. It contains the Permanent Account Number. The special thing is that this number contains a lot of information which is very important for the Income Tax Department.
Keeping this in mind, the Income Tax Department issues this to everyone. However, the PAN card holder does not know this. As you know, PAN card is a special 10 digit number which comes in the form of a laminated card. The Income Tax Department issues this to all the applicants.
What is the meaning of 10 numbers entered in PAN card?
According to the information provided by the Income Tax Department, the first three characters in the first 5 characters represent the alphabetic series which lasts from AAA to ZZZ. Whereas the fourth character tells the status of the PAN holder.
- “P” stands for one person
- “C” for company
- “H” for Hindu Undivided Family (HUF)
- “A” for Group of People (AOP)
- “B” for body of persons (BOI)
- “G” for government agency
- “J” for Artificial Juridical Person
- “L” for Local Bodies
- “F” for Firm / Limited Liability Partnership (LLP)
- “T” for Trust
If the PAN belongs to an individual, then the fifth character shows the last name, surname of the PAN holders. On the other hand, if someone is a non-individual, then the fifth letter of the PAN shows the name of the PAN holder. The next 4 characters come in the sequence from 0001 to 9999. Whereas the last letter is the alphabetic check digit.
Use Of Pan
With this the department gets to know the transactions with all the PAN holders. In this, information like tax payment, TDS / TCS credit, income tax return, special transactions etc. is available. With this, information related to PAN holders is also easily available, while investment, lending and other business activities are also known.