PAN (Permanent Account Number)
A ten-character alphanumeric identifier issued by the Income Tax Department that tracks all of a person's or entity's financial transactions under one number for life.
PAN is a unique ten-character code (letters and numbers) issued to individuals, companies, and other entities by the Income Tax Department, mainly to link every taxable transaction, from filing a return to opening a bank account to buying property above certain thresholds, back to one identity. It doesn't expire and doesn't change even if you move cities or change jobs.
Beyond tax filing itself, PAN is now required for a wide range of financial transactions: opening a bank or demat account, transactions above specified cash or value thresholds, mutual fund investments, and property registration, among others. Since mid-2023, PAN and Aadhaar are required to be linked for most holders, and an unlinked PAN can become inoperative, which blocks tax filing and TDS credit until it's fixed.
This glossary entry is for general informational purposes only and does not constitute professional tax, legal, or financial advice. Rules and rates change, so consult a qualified Chartered Accountant for advice specific to your situation.