PAN stands for Permanent Account Number. It is a unique ten-character alphanumeric identifier issued by the Income Tax Department of India. PAN is used as an identification number for individuals, businesses, and organizations for various financial transactions and dealings in India.
The primary purpose of PAN is to track financial transactions, including tax payments, returns, and correspondence, in order to prevent tax evasion and maintain a comprehensive record of an entity’s financial activities.
PAN is mandatory for several financial transactions, such as filing income tax returns, opening a bank account, making significant investments, purchasing or selling immovable properties, and conducting high-value transactions.
The structure of a PAN card number follows the format “AAAAA9999A,” where the first five characters are letters, followed by four numerals, and ending with one letter. The first three characters are typically three letters that represent a sequence assigned to the PAN jurisdictional office, the fourth character denotes the category of the PAN holder (e.g., individual, company, trust, etc.), and the fifth character represents the first character of the PAN holder’s surname or the name of the entity.

PAN cards are issued by the Income Tax Department through authorized agencies and are widely used as a proof of identity for various official and financial purposes in India.

To apply for a Permanent Account Number (PAN) in India, the following documents are typically required:

Proof of Identity (Any of the Following):

• Aadhaar card issued by the Unique Identification Authority of India (UIDAI)
• Voter ID card
• Driving license
• Passport

Proof of Address (Any of the Following):

• Aadhaar card issued by UIDAI
• Voter ID card
• Driving license
• Passport

Proof of Date of Birth (Any of the Following):

• Birth certificate issued by the Municipal Authority or any authorized office
• Matriculation certificate
• Passport
• Driving license

Passport-size Photograph: Two recent passport-size color photographs of the applicant.