Decoding a PAN number



PAN number or the Permanent Account Number is a unique, 10-character alpha-numeric, issued primarily for universal identification of all financial transactions and to prevent tax evasion by keeping track of monetary transactions. It is issued by the Indian Income Tax Department under the supervision of the Central Board for Direct Taxes (CBDT).
In any given PAN number, the First five characters are letters, next four are numerals, and the last character is letter.
  • The first three letters is a sequence of alphabets from AAA to ZZZ and this selection is random.
  • The fourth character informs about the type of holder of the card. Each holder is uniquely defined as below:
    • A — Association of Persons (AOP)
    B — Body of Individuals (BOI)
    C — Company
    F — Firm
    G — Government
    H — HUF (Hindu Undivided Family) 
    L — Local Authority
    J — Artificial Juridical Person
    P — Individual
    T — AOP (Trust)
    K — Krish (Trust Krish)
    So if you are an individual, the fourth character in your PAN number will be 'P'.
    • The fifth character is assigned to the letter with which your last name begins. Let's say your name is Vamsi Krishna. So, the fifth character in your PAN number will be 'K' as the last name begins with K.
    • The sixth to ninth characters are numerals, selection of which is once again random (as similar to first three characters)
    • The tenth character is alphabetic check digit. Alphabetic check digit is generated by applying a formula to the preceding nine characters

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