Permanent Account Number (PAN) is a ten digit unique alphanumeric combination. It is issued to all juristic entities as identified under the Indian Income Tax Legislation. It is issued by the Indian Income Tax Department (through its appointed body e.g. NSDL). PAN is equivalent to a national identification number in India, and also serve an important role as an ID proof.
Permanent Account Number
A sample PAN Card
Salient Features of PAN:
- Application Form: It is applied in a prescribed form (i.e. Form 49AA in case of Non-Residents). Application needs to be correctly filled up & signed by the applicant (with two photographs pasted on the face of form). Application can be submitted online or with the PAN agency.
- ID Proof and Address Proof: PAN Application needs to be submitted along with ID proof and Address proof.
- Mandatory: PAN is a mandatory requirement for doing certain financial transactions e.g. opening a bank account, buying an immovable property, buying of shares/mutual funds/other securities etc.
- Mandatory For ITR: PAN is also mandatory for filing of Income Tax Return in India.
- PAN also work as identification key factor for all financial transactions.
- PAN is also helpful in keeping a track of monetary transactions of high net worth individuals.
- PAN Correction/Modification: PAN is unaffected by a change of address, name, income level, change of country etc. However, a PAN Correction/Change Application (in the prescribed form) must be filed with the Income Tax Department to get information updated with the IT Department.