A PAN card is not just another identification document; it is a crucial piece of proof issued by the Income Tax Department. PAN, or Permanent Account Number, is required for various financial and tax-related activities. Have you ever wondered what the letters and numbers on your PAN card mean? Let’s break it down and explain the key details in simple terms.
Name of the Cardholder
The first thing you’ll notice on your PAN card is the cardholder’s name. For individuals, it is their full name. In the case of companies or firms, the registered business name appears. This is an important detail for identification.
Father’s or Mother’s Name
For individual PAN cardholders, the father’s name is usually printed below their name. In some cases, the mother’s name might appear instead. This additional detail helps in further verifying the identity of the person.
Date of Birth or Registration Date
For individual holders, the date of birth is printed on the PAN card, serving as an official document for age proof. For businesses, the date of registration is listed instead of the date of birth.
The PAN Number
The PAN number itself is a unique 10-character alpha-numeric code. Every PAN number is different, but it follows a specific pattern:
- First Three Letters: These are purely alphabetic, chosen from A to Z, and are randomly generated.
- Fourth Letter: This letter reveals the type of PAN holder. Here’s what each letter stands for:
- P: Individual
- C: Company
- F: Firm
- A: Association of Persons
- H: Hindu Undivided Family (HUF)
- G: Government Agency
- T: Trust
- L: Local Authority
- J: Artificial Juridical Person
- Fifth Letter: This letter is the first letter of the individual’s surname (in the case of individuals) or the first letter of the company or entity’s name.
Signature of the Holder
Every individual PAN card includes the cardholder’s signature. This detail is useful for many financial transactions, as the PAN card also acts as a proof of signature. For businesses and firms, this field might be left blank.
Cardholder’s Photo
A photograph of the cardholder is printed on the bottom right corner of the PAN card, making it a valid photo ID. For businesses, no photograph is present since they are entities and not individuals.
Why PAN Card is Important?
The PAN card has multiple uses beyond just tax filing. It serves as an identification document, is needed when making high-value transactions like buying property or cars, and is also required for opening bank accounts, investing in the stock market, and more.
By understanding these details, you can appreciate how much information a simple card can hold. The next time you look at your PAN card, you’ll know exactly what each part means.
