What is a permanent account number (PAN)?
Reviewed by Ranga & Company
PAN: A PAN is the 10-character alphanumeric identity the Income Tax Department issues to every taxpayer. It is needed to file returns, receive TDS credit and carry out high-value transactions.
At a glance
- Format
- 5 letters, 4 digits, 1 letter (e.g. ABCDE1234F)
- 4th character
- Taxpayer type: P (individual), H (HUF), F (firm/LLP), C (company)
- Instant e-PAN
- Free on the e-filing portal with an Aadhaar-linked mobile
- Aadhaar link
- Mandatory for individuals; unlinked PAN becomes inoperative
Where you must quote your PAN
- Filing income tax returns and claiming TDS credit
- Opening bank, demat and mutual fund accounts
- Buying or selling property worth more than ₹10 lakh
- Cash deposits above set limits, and GST registration
Inoperative PAN
If an individual's PAN isn't linked to Aadhaar, it becomes inoperative: refunds are withheld, interest on them stops, and TDS and TCS are charged at higher rates. Link it on the e-filing portal after paying the fee.
Common mistakes
- Name or date-of-birth mismatches between PAN and Aadhaar, which block linking
- Holding two PANs; only one is allowed and a penalty can apply
Frequently asked questions
How can I get a PAN quickly?
Individuals with an Aadhaar-linked mobile number can get a free instant e-PAN on the income tax e-filing portal.
What happens if my PAN is inoperative?
Refunds are withheld and tax is deducted or collected at higher rates. Link PAN with Aadhaar after paying the fee to make it operative again.
What does the 4th letter of a PAN mean?
It shows the taxpayer type, for example P for an individual, H for an HUF, F for a firm and C for a company.
Related terms
Get help with this
Related services
From the blog
- GuidesMissed the ITR Deadline? How to File a Belated Return Before 31 December 2026Missed the 31 July or 31 August deadline for AY 2026-27? File a belated return by 31 December 2026. Late fee, regime rules, losses and the steps, explained.
- GuidesGot an Income Tax Notice? What Each Notice Means and How to ReplyA plain-English guide to income tax notices under sections 143(1), 139(9), 142(1), 143(2), 148A and 245: what each means, how long you have and how to reply.
- GuidesThe Income-tax Act, 2025: What Changed From 1 April 2026The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026. What the tax year means, what stays the same and how your next ITR is affected.
Talk to a Jodhpur tax expert today
Send your documents on WhatsApp or book a free 15-minute call. We reply the same working day.