Glossary term

PAN

Unique 10-character ID issued by the Income Tax Department. Mandatory for almost all financial transactions in India.

Permanent Account Number (PAN) is a 10-character alphanumeric ID issued by the Income Tax Department. It's mandatory for opening bank accounts, filing tax returns, investing in mutual funds, buying property, and most other meaningful financial transactions.

PAN must be linked with Aadhaar; non-linked PANs become inoperative. Quoting an incorrect or unlinked PAN can attract higher TDS rates.