What is a PAN card?

A PAN card, or Permanent Account Number card, is a physical representation of a unique 10-digit alphanumeric identifier issued by the Indian Income Tax Department. It serves as a crucial document for tax-related activities and financial transactions in India. The PAN card contains essential information such as:

• PAN Number: A unique identifier used for tracking tax-related activities.
• Name: Full name of the cardholder.
• Date of Birth: The cardholder's date of birth.
• Photograph: A photo of the cardholder.
• Signature: The cardholder's signature.
• Father's Name: The cardholder's father's name (in some formats).
• QR Code: Contains cardholder's details for verification (introduced in 2017).

Purpose and Importance

The PAN card is essential for several purposes:

• Tax Filing: Mandatory for filing income tax returns and other tax-related communications.
• Financial Transactions: Required for opening bank accounts, purchasing immovable properties, and other significant financial transactions.
• Identification: Acts as a recognized government-issued ID for various applications.
• Tracking Financial Activities: Helps the government monitor financial transactions to prevent tax evasion.

Eligibility

PAN cards are available to all Indian citizens, Non-Resident Indians (NRIs), and artificial entities like companies and trusts. It is mandatory for individuals and entities involved in tax-paying activities in India.

Structure of PAN

The PAN number is structured as follows:

• First Three Characters: Random alphabets (e.g., AAA to ZZZ).
• Fourth Character: Identifies the type of PAN holder (e.g., P for Individual, C for Company).
• Fifth Character: First letter of the surname or last name.
• Next Four Characters: Sequential numbers (0001 to 9999).
• Last Character: An alphabetic check digit.