Permanent Account Number (PAN) is a code that acts as identification for Indian nationals, especially
those who pay Income Tax. It is a unique, 10-character alpha-numeric identifier, issued to all judicial
entities identifiable under the Indian Income Tax Act, 1961. It is issued by the Indian Income Tax
Department under the supervision of the Central Board for Direct Taxes (CBDT) and it also serves as an
important proof of identification.
Unlike the Aadhaar Number and Driving License, it is also issued to foreign nationals (such as investors)
subject to a valid visa and hence, it is not acceptable as a proof of Indian citizenship.
The PAN is mandatory for a majority of financial transactions such as opening a bank account, receiving
taxable salary or professional fees, sale or purchase of assets above specified limits etc.; especially
high-value transactions.
The primary purpose of the PAN is to bring a universal identification to all financial transactions and to
prevent tax evasion by keeping track of monetary transactions, especially those of high-net-worth
individuals who can impact the economy.
The PAN is unique to each individual and is valid for the life time of the holder, throughout India. An
important point to note would be that once issued, the PAN is not affected by a change of address.
Pan card is an identity proof for Indian
citizen.
Pan card is required for opening any back account in
India.
Pan card is required for
also buying and selling of immovable property and any motor vehicle except two wheelers.
Pan is required for depositing cash aggregating to
fifty thousand rupees or more