The main purpose for the new series of the PAN numbers was that they needed to be unique to each person in the country, only then it could be effective.
There is much to learn about the structuring of the PAN which is generated automatically online after accounting for the information provided by the applicant.
The PAN structure is as follows
- AAAPL1234C: First five characters are letters, next four numerals, last character is a letter.
- First Three Characters
- The first three characters of PAN are a sequence of alphabets from AAA to ZZZ
- Fourth Character
- The fourth character signifies the status of taxpayer.
- A Stands for Association of Persons (AOP)
- B Stands for Body of Individuals (BOI)
- C Stands for Company
- F Stands for Firm
- G Stands for Government
- H Stands for HUF (Hindu Undivided Family)
- L Stands for Local Authority
- J Stands for Artificial Judicial Person
- P Stands for Individual
- T Stands for AOP (Trust)
- So if an individual obtains PAN, his/her PAN will have the fourth character as ‘P’ which stands for individual taxpayer.
- Fifth Character
- The fifth character in PAN represents the first character of the PAN holder's last name/surname in case of an individual. In case of non-individual PAN holder’s, the fifth character represents the first character of PAN holder's name. So, if an individual is named ‘Vijay Kumar, the fifth character of his PAN will be ‘K’
- Next four characters are sequential numbers running from 0001 to 9999
- Last character, i.e., the tenth character is an alphabetic check digit