Know Meaning of Characters in Income-Tax PAN

Most of the readers of this blog would have PAN (Permanent Account Number) issued by the Indian Income-Tax Department. However, do you know what does the characters in the PAN mean?

Below is the format of a PAN:

It is a 10 digit alpha-numeric number, where first five characters are letters, the next four numbers & the last one a letter again. These 10 characters can be divided in five parts explained below.

1. First three characters are alphabetic series running from AAA to ZZZ.

2. Fourth character of PAN represents the status of the PAN holder.

C — Company

P — Person

H — HUF(Hindu Undivided Family)

F — Firm

A — Association of Persons (AOP)

T — AOP (Trust)

B — Body of Individuals (BOI)

L — Local Authority

J — Artificial Juridical Person

G — Government

3. Fifth character represents first character of the PAN holder’s last name/surname. In case of all other assesees 5th field will be first letter of Name/First Name.

4. Next four characters are sequential number running from 0001 to 9999.

5. Last character in the PAN is an alphabetic check digit.

Now a days, the DOI (Date of Issue) of PAN card is mentioned at the right (vertical) hand side of the photo on the PAN card.

-Tanmay

What is Ferrite Core?

In electronics, a ferrite core is a type of magnetic core made of ferrite on which the windings of electric transformers and other wound components such as inductors are formed. It is used for its properties of high magnetic permeability coupled with low electrical conductivity (which helps prevent eddy currents). Because of their comparatively low losses at high frequencies, they are extensively used in the cores of RF transformers and inductors in applications such as switched-mode power supplies, and ferrite loop stick antennas for AM radio receivers.

Difference in ‘Contract of Employment’ & ‘Contract for Employment’?

When there is ‘Employer/Master’ & ‘Employee/Servant’ relationship:

Where employer not only directs ‘what & when a thing has to be done’ but also ‘how it has to be done’ & the employee is bound to carry out employer’s instructions, it is called ‘Contract of Employment’. E.g. an employee of ABC Limited has a ‘Contract of Employment’. Here the fee received comes under ‘Salaries’.

Where As

When the employer merely directs ‘what has to be done’ while the methodology for carrying out the job is left to the discretion of the employee, it is called ‘Contract for Employment’. This applies especially to professionals & technocrats who take up assignments. E.g. Chartered Account working for ABC Limited has a ‘Contract for Employment’. Here the fee received comes under either income from ‘Business or Profession’ or income from ‘Other Sources’.