As per government of India Income Tax act 1961 for effective check on tax erosion and evasion on various high net worth transactions, the government of India had made it mandatory to have a PAN card for all those who need to be assessed for income tax and file the return. There is a special system according to which the PAN card is designed and for different types of assesses there are different codes assigned by the authority. Hence it becomes easier to check the original and fake pan card number.
How Pan Card Number is Formed?
The PAN card holds a unique 10 digit number in the alpha numeric form. In the code the first five letters are alpha code which are different for different types of assesses, and hence there are variations in the first five letters. The first alphabet is area and second denotes zone. For an individual person there is the fourth letter as ‘P’ while for company the fourth letter is ‘C’. For a Hindu Undivided Family, it is ‘H’ and for an association of people is ‘A’. Hence the fourth letter is very important. The fifth letter of the code shows the first word of the last name of the applicant. The next four are the numeric code and then there is again an alphabet as the last code. Hence in case of an alteration in this code means that the PAN card provided is a fake one.
How to be sure about the originality of a PAN card?
The codes can be the best source to check the originality of the PAN card. Nowadays the government also has started to imprint the date of issuance of the card in the upper right hand side corner. There are also a lot of sites from where one can check the PAN card number and match the same with the data provided. As per the law it is an offence to have more than one PAN card number and hence a fake PAN card is also dealt with strict actions. Click Here to read how to verify your pan card.
Importance of a Pan Card
The PAN card is accepted as a valid Identity proof issued by the government and hence it has got huge importance. There are a number of transactions where one needs to quote the PAN number so that the government can have a check on the validity of those transactions and those who avoid paying tax can be caught in the interest of the nation. There are a few transactions on which it is mandatory to quote the PAN number and the concerned banks need to send the same details of the transactions to the government for further actions.