Permanent Account Number (PAN) is not just photo identification for Indians; it is a sort of compulsion to have as it is necessary in almost every government and financial activity. Even if a person needs to open a bank account, he needs to have a PAN with him.
Every entity that comes under the Income Tax Act, 1961 and every person who pays income tax need to have a PAN. The PAN is helpful to the government in tracking all the financial transactions and in preventing financial frauds by proper monitoring.
Have you ever noticed that PAN for everybody is of 10 digits and it is unique for everyone, don’t you ever wondered how is the PAN allotted and what does those 10 digits stand for.
Watch this video to know the significance of every letter used in your PAN:
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Image Source: Bhaskar News