PAN

PAN, or Permanent Account Number, is a unique alphanumeric identifier assigned to individuals and entities in India. It is issued by the Income Tax Department under the supervision of the Central Board for Direct Taxes (CBDT). PAN is a crucial identification number used for various financial and tax-related transactions.

  1. Uniqueness:
    • Each PAN is unique, and it serves as a universal identifier for the individual or entity to whom it is assigned. It remains the same throughout the lifetime of the PAN holder.
  2. Structure:
    • PAN is a 10-character alphanumeric code, where the first five characters are letters, the next four are numbers, and the last character is again a letter. For example, ABCDE1234F.
  3. Mandatory for Financial Transactions:
    • PAN is mandatory for a range of financial transactions, including opening a bank account, making investments, purchasing or selling assets, and filing income tax returns. It helps track financial transactions and prevent tax evasion.