What does the 5th character mean?

The first letter of the surname for an individual, or of the entity's name for everyone else. A mismatch with the vendor name is a sign the PAN is wrong.

Does this check whether the PAN is active?

No. Use the Income-tax portal's Verify PAN service or TRACES bulk verification for status and Aadhaar linking. This tool validates the format only.

What happens if a PAN is inoperative?

TDS is deducted at the higher rate under 206AA, refunds are held and the return may not be processed until Aadhaar is linked.

Why does PAN type matter for TDS?

Several sections have different rates by payee: 194C is 1% for individuals/HUF and 2% for others; 194D is 2% for agents and 10% for companies.

PAN Validator & Decoder

Check a PAN's format and see whether it belongs to an individual, company, firm, HUF or trust from its fourth character.

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PAN

4th character = holder type

P IndividualC CompanyH Hindu Undivided FamilyF Firm / LLPA Association of PersonsT TrustB Body of IndividualsL Local AuthorityJ Artificial Juridical PersonG Government

Result

Enter a PAN to check it.

Format validation only. Whether the PAN is issued, active or linked to Aadhaar can be verified on the Income-tax portal's 'Verify PAN' service or through your TRACES login.

How it works

AAAAA9999A

Five letters, four digits, one letter. The 4th letter is the holder type and the 5th is the first letter of the surname or entity name.

Holder type

P individual, C company, H HUF, F firm/LLP, A AOP, T trust, B BOI, L local authority, J artificial juridical person, G government.

Why check

A PAN with the wrong type (an individual's PAN on a company invoice, say) is a sign the vendor record is wrong before TDS is deducted.

What the PAN tells you before you deduct TDS

The TDS section and rate often depend on who the payee is: 194C is 1% for individuals and HUFs but 2% for others; 194D is 2% for agents but 10% for companies; 194Q applies only to resident sellers. The fourth character of the PAN settles the question in one glance. A PAN that fails the format, or is missing, triggers 206AA and a 20% deduction. The 5th character cross-checks the name: for an individual it is the surname's first letter, for everyone else the entity name's.

Inoperative PANs

A PAN not linked to Aadhaar is inoperative: TDS at 20% and no refund processing until linked.

One PAN per person

Holding two PANs attracts a ₹10,000 penalty under 272B; surrender the duplicate.

In the GSTIN

Characters 3–12 of a GSTIN are the PAN. The GSTIN validator decodes it the same way.

TAN is different

A TAN (AAAA99999A) identifies the deductor, not the taxpayer; do not confuse the two on challans.