What is PAN Check Digit and How it Works?

The PAN check digit is the last character of the PAN, which is an alphabetic character generated by applying a formula that takes into account the first nine digits of the PAN. Its purpose is to ensure the accuracy of the PAN and detect any errors that may have occurred while entering the PAN. The check digit is calculated using the Luhn algorithm, which is a mathematical calculation used for error detection on identification numbers.

The PAN check digit is the last character of a 10-digit Permanent Account Number (PAN) in India. It’s an alphabetic character that serves as a validation mechanism to ensure the accuracy of the PAN and detect any errors in its transcription.

How PAN Check Digit Work?

1. Calculation: The check digit is calculated using a specific algorithm that involves assigning numerical values to the letters in the first nine characters of the PAN and performing certain mathematical operations.

2. Embedding: The resulting check digit is then embedded as the tenth and final character of the PAN.

3. Verification: When a PAN is entered for any purpose, the same algorithm is used to recalculate the check digit based on the first nine characters.

4. Validation: If the recalculated check digit matches the actual check digit in the PAN, it indicates that the PAN is likely valid and has been entered correctly. If they don’t match, it suggests an error in the PAN or its entry.

Purpose of PAN Check Digit

1. Error Detection: Its primary purpose is to catch accidental errors that might occur when a PAN is typed or handwritten, such as transpositions, substitutions, or omissions of characters.

2. Data Integrity: It helps maintain the integrity of PAN data in various systems and databases.

3. Fraud Prevention: It can also help deter some forms of fraud that involve using invalid or manipulated PANs.