A PAN card is one of the most important documents of our identity. Without a PAN card, no financial transaction is possible. It is needed from opening a bank account to a demat account. It is also necessary to have your PAN card linked with your Aadhaar card. Much of our important information is recorded on the PAN card. But do you know what the 10 digits mentioned in the PAN card mean and how important it is for you?
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PAN card has a mixture of alphabet and numerical
Out of the 10 numbers entered in any PAN card, the first three characters are alphabetic. The Income Tax Department uses a special process to issue PAN numbers. The 10 numbers entered on your PAN card are a combination of alphabets and numerical digits. In the alphabetic series, any three-letter series from AAA to ZZZ can be entered on your PAN card. The first five characters of the PAN card are always letters and the next four characters are numbers and then it ends with a letter.
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What do the letters on the PAN card indicate?
The fourth alphabet entered in your PAN card is an indication of what you are in the eyes of the Income Tax Department. If you are an individual, then the fourth alphabet of your PAN card will be ‘P’. Similarly, each character has a different meaning. If F is written on the PAN, then it is an indication that the number belongs to a firm. If T is entered, it indicates Trust, H indicates Hindu Undivided Family, B indicates Body of Individual, L indicates Local, J indicates Artificial Judicial Person, and G indicates Government.
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A PAN card is necessary for financial work
The fifth letter entered on the PAN card is the first letter of the surname. Suppose someone’s name is Rohan Kumar, then the fifth letter will be K. After this four random numbers are entered. Then, there is an alphabet in the last. A PAN card is very important for any person for financial work. The numbers entered on the PAN card are very important. That’s why banks or government agencies advise not to share them with anyone.
Deadline to link Aadhaar with PAN
The government has extended the deadline for linking PAN card with Aadhaar card till June 30, 2023. That is, you can link your PAN with your Aadhaar till June 30 with a late fee of Rs 1000. If your PAN card gets deactivated and you use it as a document for any financial work, then you can be fined up to Rs 10,000.
