A Permanent Account Number or PAN is a ten-character alphanumeric identifier, issued in the form of a laminated “PAN card” or “E-PAN” by the Indian Income Tax Department, to any “person” who applies for it or to whom the department allots the number without an application.
They introduced PAN to facilitate the linking of various documents, enable the payment of taxes, conduct assessments, issue tax demands, and recover tax arrears related to a person. In addition, it facilitates easy retrieval and cross-confirmation of information relating to investment, the raising of loans, and other business activities of taxpayers collected through various sources. PAN, thus, acts as an identifier for the “person” with the Income-tax department.
The Indian applicants are supposed to submit their “Application for allotment of new PAN” in Form 49A. Foreign citizens are supposed to submit their “Application for allotment of new PAN” in Form 49AA.
Who can Apply for a PAN Card?
- An Individual Person
- Hindu Undivided Family (HUF)
- Partnership Firm
- Limited Liability Partnership
- Artificial Juridical Person
- Government or Local Authority
- Association of persons
- Body of Individuals