PERMANENT

ACCOUNT
NUMBER(PAN)
• Permanent Account Number abbreviated as PAN is a unique 10-digit
alphanumeric number issued by the Income Tax Department to Indian
taxpayers.
• The department records all tax-related transactions and information of an
individual against his unique permanent account number. This allows the
taxpayer to link all tax-related activities with the department.
• PAN primarily acts as a database for all individual transactions, such as,
1. tax collected at source (TCS)/tax deducted at source (TDS) credits,
2. income tax payments,
3. return on gift/investments/wealth, etc.
The PAN enables the tax department to identify an individual’s tax-related
transaction.
 PAN CARD

1) PAN has a typical format of ABCTY1234D.

2) The first three characters, i.e., ‘EJA’ in the above
number is an alphabetic series ranging between AAA
and ZZZ.
3) The 4th character, ‘P’ i.e., represents the PAN
holder’s status.
4) The 5th character, i.e., ‘S’, represents the first alphabet
the PAN holder’s last name.
5) The next four characters are sequential digits ranging
between 0001 and 9999.
6) The 10th character, i.e., ‘M’, is an alphabetic check
digit that runs from A to Z.
C-COMPANY
P-PERSON
H-HUF
F-FIRM
A-ASSOCIATION OF PERSONS
B-BODY OF INDIVIDUALS
L-LOCAL AUTHORITY
J-ARTIFICIAL JUDICIAL PERSON
G-GOVERNMENT
PAN is to be obtained by following
persons:
• any person or entity carrying out financial transactions
above a certain threshold must obtain a Permanent
Account Number (PAN) from the Income Tax
Department. It comprises opening a bank account,
filing income tax returns, or investing in securities.
The transactions in which quoting of
PAN is mandatory by every person:
• 1.Sale or purchase of a motor vehicle or vehicle other than two wheeled
vehicles.​ ​
• 2. Opening an account [other than a time-deposit referred at point No. 12
and a Basic Savings Bank Deposit Account] with a banking company or a co-
operative bank​
• 3. Making an application for issue of a credit or debit card.
• 4. Opening of a demat account with a depository, participant, custodian of
securities or any other person with SEBI
• 5. Payment in cash of an amount exceeding Rs. 50,000 to a hotel or
restaurant ag​ainst bill at any one time.
• 6. Payment in cash of an amount exceeding Rs. 50,000 in connection with travel to any foreign
country or payment for purchase of any foreign currency at any one time.
• 7. Payment of an amount exceeding Rs. 50,000 to a Mutual Fund for purchase of its units
• 8. Payment of an amount exceeding Rs. 50,000 to a company or an institution for acquiring
debentures or bonds issued by it.
• 9. Payment of an amount exceeding Rs. 50,000 to the Reserve Bank of India for acquiring bonds
issued by it.
• 10. Deposit with a banking company or a co-operative bank:-
• i. ​C ash exceeding Rs. 50,000 during any one day; or
• ii. Cash deposit of aggregating to more than Rs. 2,50,000 during the period 09th November 2016 to
30th December 2016
• 11. Payment in cash for an amount exceeding Rs. 50,000 during any one day for purchase of bank
drafts or pay orders or banker’s cheques from a banking company or a co-operative bank.
• 12. A time deposit of amount exceeding Rs. 50,000 or aggregating to more than Rs. 5 lakh
during a financial year with –

i. ​a banking company or a co-operative bank

ii. a Post Office;

iii. a Nidhi referred to in section 406 of the Companies Act, 2013 or

iv. a non-banking financial company

• 13. Payment in cash or by way of a bank draft or pay order or banker’s cheque of an
amount aggregating to more than Rs. 50,000 in a financial year. 14. Payment of an amount
aggregating to more than Rs. 50,000 in a financial year as life insurance premium to an
insurer
• 15. A contract for sale or purchase of securities (other than shares) for
amount exceeding Rs. 1 lakh per transaction
• 16. Sale or purchase, by any person, of shares of a company not listed in a
recognized stock exchange for amount exceeding Rs. 1 lakh per transaction.
• 17. Sale or purchase of any immovable property for an amount exceeding
Rs. 10 lakh or valued by stamp valuation authority referred to in section
50C of the Act at an amount exceeding ten lakh rupees.
• 18. ​Sale or purchase of goods or services of any nature other than those
specified above for an amount exceeding Rs. 2 lakh per transaction.
CONCLUSION
• Permanent Account Number, or PAN, is a ten-digit alphanumeric code issued
by the Indian Income Tax Department. It serves as a unique identification
number for taxpayers in India. The PAN is required to file income tax
returns, make tax payments, and do other financial transactions such as
opening a bank account or taking out a loan. The PAN is also useful for
tracking an individual's financial transactions and can be used
to prevent tax evasion and money laundering.
THANK YOU