Anyone responsible for deducting or collecting tax at source must mention both their own PAN and that of the deductee. Quoting the PAN ensures that the tax credit is correctly linked to the respective person’s account.
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PAN, or Permanent Account Number, is a 10-digit alphanumeric identifier issued by the Income Tax Department of India. It serves as a unique ID for tracking and managing all income tax assessees across the country.
While applying for a PAN card is generally voluntary, it becomes mandatory for certain financial transactions that exceed specified limits. Additionally, every business entity is required to apply for a PAN within 30 days of its formation or incorporation.
To open a savings or current bank account, every individual or business owner must provide certain KYC documents, with PAN being one of the most essential requirements.
Quoting a Permanent Account Number (PAN) is mandatory when filing Income Tax Returns (ITR) for both individuals and businesses. All filed information is linked to the PAN, enabling quicker assessment and processing by the Income Tax Department.
A PAN card is widely accepted as a valid identity proof for both individuals and businesses. Whether it’s opening a bank account or completing government registrations, the PAN card is a primary and essential requirement.
Anyone responsible for deducting or collecting tax at source must mention both their own PAN and that of the deductee. Quoting the PAN ensures that the tax credit is correctly linked to the respective person’s account.
The government has mandated PAN quoting for certain high-value transactions. These include specified amounts for property transfers, large bank deposits, bill payments, and other financial activities to ensure transparency and proper tax tracking.
Copy of Aadhar Card or other address proof, in case of individual
Two passport size photograph, in case of individual
Copy of Birth Certificate, in case of Minor
ID proof and Address proof of any of the parent
CoI in case of company and LLP
Agreement in case of LLP and Partnership Firm
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For unique identification, a specified structure of 10 digit code is provided
Alphabetical series from AAA to ZZZ
Informs about status of assessee
Fifth character of assessee’s last name
Sequential numbers from 0001 to 9999
Numeric check digit generated automatically
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