Permanent Account Number: Complete Guide

A Permanent Account Number (PAN) is a 10-character alphanumeric identifier issued by the Income Tax Department to track every taxpayer’s financial transactions in one place. Every resident and non-resident individual, company, firm, or trust that files returns or crosses specified transaction thresholds needs one. As of April 2026, new PAN applications use Forms 93-96 under the Income-tax Act, 2025; Form 49A and 49AA are no longer accepted for fresh applications.

What Is a Permanent Account Number (PAN) in Income Tax?

PAN is a unique, lifetime-valid 10-digit alphanumeric code issued by the Income Tax Department under Section 262 of the Income-tax Act, 2025 (the provision that replaced Section 139A and Section 139AA of the Income-tax Act, 1961). It links a person’s tax returns, TDS, financial transactions, and correspondence with the department into a single traceable record.

Every PAN holder can have exactly one PAN. Holding more than one is a compliance default, and the department treats it as such regardless of intent. PAN is issued as a laminated physical card or as a digitally signed e-PAN PDF, and both carry equal legal validity.

PAN Number Format: How to Read the 10 Characters

Each PAN follows a fixed structure. Once you know the pattern, you can read basic information straight off the number.

The PAN itself does not indicate your jurisdiction or Assessing Officer; that mapping is maintained separately in the department’s database and can change even though your PAN never does.

Who Needs a PAN Card

You’re required to have a PAN if you fall into any of these categories:

• Your income exceeds the basic exemption limit in any financial year
• You run a business or profession with total sales, turnover, or receipts likely to exceed ₹5 lakh in a year
• You’re required to file an income tax return under the Act
• You’re a company, firm, LLP, trust, or AOP/BOI, regardless of profit or loss
• You’re liable to deduct or collect tax at source (TDS/TCS)
• You intend to carry out transactions where quoting PAN is mandatory (covered below)

NRIs and foreign entities also need a PAN if they carry out taxable transactions in India. See the PAN card guide for NRIs and the HUF PAN application guide for category-specific document requirements.

PAN Application Forms: 93, 94, 95, 96 (Form 49A Is Discontinued)

Form 49A and Form 49AA were officially discontinued from 1 April 2026. New PAN applications now use one of four forms prescribed under Rule 158 of the Income-tax Rules, 2026, depending on who’s applying:

If you’re researching the older form because of a bookmarked link or a form your CA mentioned, see the Form 49A guide for what’s changed and how to find the current equivalent.

Documents Required for a PAN Application

Rule 158 of the Income-tax Rules, 2026 groups documents into three proofs: identity, address, and date of birth. A single document can sometimes cover more than one category: an Indian passport, for example, covers all three.

One detail worth flagging directly: Aadhaar covers identity and address, but not date of birth. The official document table lists Aadhaar as valid proof of identity and address only. Applicants still need a separate DOB document such as a birth certificate, matriculation certificate, or passport.

Commonly accepted documents include:

• Aadhaar card, Indian passport, driving licence, voter ID
• Ration card with photograph, government-issued photo ID
• Utility bills, bank or depository account statements (not older than three months) for address proof
• Birth certificate, matriculation certificate, or marriage certificate for date of birth

For the complete, form-wise document matrix, including what changes for minors and non-resident applicants, see the full PAN documents checklist.

How to Apply for a PAN Card Online

PAN applications are processed through two authorized service providers:

1. Go to the UTIITSL or Protean eGov (formerly NSDL eGov) portal
2. Select the correct form (93, 94, 95, or 96) based on your applicant category
3. Fill in personal details exactly as they appear on your Aadhaar, since name mismatches are the most common cause of rejection
4. Upload identity, address, and date of birth proofs
5. Complete e-KYC/e-Sign or submit physical documents, then pay the applicable fee
6. Track your application using the acknowledgement number until the PAN is allotted

Domestic companies and LLPs can also apply through the Common Application Form linked to MCA incorporation, and FPIs through SEBI’s CAF. For a click-by-click walkthrough with screenshots, see the step-by-step PAN application guide. If you need a PAN quickly, the instant e-PAN process allots one within minutes for applicants with a valid Aadhaar and linked mobile number.

PAN Card Fees in 2026

Fees depend on whether you apply on paper or digitally, and whether you want a physical laminated card or only the e-PAN.

Digital applications carry an additional e-Sign charge of ₹5.90. For a breakdown by applicant category and payment mode, see the PAN card charges guide.

Where Quoting PAN Is Mandatory

Beyond filing returns, PAN must be quoted for a defined list of high-value transactions under Rule 159 of the Income-tax Rules, 2026 (which corresponds to the earlier Rule 114B). Common examples:

• Opening a bank account (other than a basic savings account) or a demat account
• Buying or selling a motor vehicle, other than a two-wheeler
• Cash deposits or time deposits above prescribed thresholds
• Sale or purchase of immovable property above the specified value
• Cash payments to hotels, or for foreign travel or foreign currency, above ₹50,000
• Sale or purchase of shares in an unlisted company exceeding ₹1 lakh
• Applying for a credit or debit card

If you don’t have a PAN and need to complete one of these transactions, you can furnish Form 60 as a declaration instead. Companies and firms, however, can’t use Form 60 as a substitute. If the transaction involves a bank account, see how to link PAN to your bank account for the full process.

What Happens If You Don’t Have or Quote PAN

Non-compliance carries both a fixed penalty and a recurring tax cost:

• Flat penalty: A penalty of ₹10,000 per default applies for failing to apply for PAN when required, quoting an incorrect PAN, or holding more than one PAN. This was historically levied under Section 272B of the 1961 Act. Confirm the corresponding provision number under the Income-tax Act, 2025 before this goes live, since consequential renumbering is still being finalized in secondary commentary.
• Higher TDS: If you don’t furnish PAN to a deductor, tax is deducted at 20% or the applicable rate, whichever is higher, under the provision corresponding to the earlier Section 206AA. This hits salary, professional fees, rent, and interest income hardest.
• Banking restrictions: Most banks won’t open a regular savings or current account without PAN or Form 60.

Linking PAN with Aadhaar

PAN-Aadhaar linking is mandatory for all PAN holders who aren’t in an exempt category. The general free-linking window closed on 30 June 2023; any PAN not linked since then is inoperative until the holder links it and pays a ₹1,000 fee. A separate deadline applied to PANs originally issued using an Aadhaar enrolment ID before 1 October 2024: those had to be linked by 31 December 2025 or the PAN became inoperative from 1 January 2026.

Exempt categories (per a 2017 CBDT notification) include residents of Assam, Jammu & Kashmir, and Meghalaya; non-residents; individuals aged 80 or above; and foreign nationals who aren’t Indian citizens.

An inoperative PAN blocks tax refunds and refund interest, triggers higher TDS/TCS, and restricts PAN-based KYC transactions. Reactivation takes up to 30 days after paying the fee and submitting the linking request. Walk through the process in the PAN-Aadhaar linking guide.

Downloading, Reprinting, and Correcting Your PAN

• Lost your physical card but remember your PAN? Use the PAN download guide to get an e-PAN, or the Aadhaar-based PAN download route if you have your Aadhaar linked.
• Need a replacement physical card after damage or loss? See the PAN reprint guide.
• Details changed or wrong? File Form CR-01 (individual) or CR-02 (non-individual). If your PAN address changed, some applicants also need Annexure A alongside the correction form.
• Name-related confusion, such as abbreviations, initials, or titles like “Smt.” on the card, is covered separately in the first name/last name on PAN card guide and the Smt. meaning on PAN card explainer.
• Applications made through Protean eGov can be tracked or managed via the NSDL/Protean login and registration guide; UTIITSL applicants can refer to the UTI PAN services guide or the TIN-PAN application guide.
• Stuck on an application? The PAN customer care number guide lists the correct helpline for your service provider.

PAN vs TAN vs Aadhaar

PAN identifies taxpayers; TAN (Tax Deduction and Collection Account Number) identifies entities responsible for deducting or collecting tax at source, and one can’t substitute for the other. Aadhaar can be quoted in place of PAN in specific, notified situations, but it doesn’t replace the requirement to hold and link a PAN once you meet the eligibility criteria above.

What Experts Say

Practitioners handling PAN applications consistently flag the same friction points: name mismatches between Aadhaar and supporting documents are the single biggest cause of rejection, initials in a name are not accepted unless the applicant also submits the expanded full name with proof, and applicants routinely underestimate how strictly the “not more than three months old” rule is applied to utility bills and bank statements used as address proof. For anyone applying on behalf of a minor or as an authorized representative, keeping the representative’s own identity and address proof ready alongside the applicant’s documents avoids a second round of resubmission.

FAQs

What is a Permanent Account Number (PAN)? PAN is a unique 10-digit alphanumeric identifier issued by the Income Tax Department to every taxpayer under Section 262 of the Income-tax Act, 2025. It tracks a person’s tax filings, TDS, and financial transactions under one number for life.

Is Aadhaar enough to apply for a PAN card? No. Aadhaar is accepted as proof of identity and address, but not as proof of date of birth. Applicants still need a separate document such as a birth certificate, matriculation certificate, or passport for date of birth.

Which form do I use now that Form 49A is discontinued? Indian citizen individuals use Form 93, Indian non-individual entities use Form 94, non-citizen individuals use Form 95, and foreign entities use Form 96. All four replaced Form 49A and Form 49AA from 1 April 2026.

Can I hold more than one PAN? No. Holding more than one PAN is not permitted, and doing so can attract a penalty of ₹10,000 per default.

What happens if my PAN is not linked to Aadhaar? An unlinked PAN becomes inoperative. Consequences include blocked tax refunds, no interest on delayed refunds, and higher TDS/TCS deduction. It can be reactivated by paying a ₹1,000 fee and submitting the linking request, with reactivation taking up to 30 days.

How much does a new PAN application cost? A paper application with a physical card costs ₹107 for Indian communication addresses and ₹1,017 for foreign addresses. Digital applications without a physical card cost ₹66, plus a ₹5.90 e-Sign charge where applicable.