What is Permanent Account Number (PAN) & Who can Apply

Q. What is PAN?

Ans. Permanent Account Number (PAN) is a ten-digit alphanumeric identifier, issued by Income Tax Department. Each assessee (e.g. individual, firm, company etc.) is issued a unique PAN.

Q. Who can apply for PAN?

Ans. All persons who are assessed to tax or taxpayers or persons who are required to file a return of income, even on behalf of others, must have a PAN. Any person, who intends to enter into economic or financial transactions where quoting PAN is mandatory, must also have a PAN. Like Return of income, purchase of motor vehicles & immovable properties etc.

· In case of minor, lunatic, idiot, mentally retarded, deceased, wards of court and such other persons , PAN can be applied their Representative Assessee.
In such cases,
in the application for PAN, details of the a minor, lunatic, idiot, mentally retarded, deceased, wards of court, etc. should be provided.

· Details of representative assessee have to be provided in item 14 of the application for PAN.

Q. Is it compulsory to quote PAN on ‘return of income’?

Ans. Yes, it is compulsory to quote PAN on return of income.

Q. Do I need to apply for a new PAN when I move from one city to another?

Ans. PAN does not change with the change in residence.

However the change of address may change the Assessing Officer. Therefore such changes must be intimated to ITD so that the PAN database of ITD can be updated.

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