What is PAN

What does PAN stands for?

PAN full form stands for ‘Permanent Account Number’. PAN is an identification number issued by the Income Tax Department of India for individuals, NGOs, companies, trusts and other entities. This 10-digit identification number is issued to track the financial transactions of taxpayers.

A PAN number is unique and can be used like an identity number when dealing with financial matters. For example, one can use a PAN number to open a bank account, do banking transactions, buy or sell shares, mutual funds, bond, etc.

Income taxes have to be paid to the government as per India’s Income Tax Act of 1961. At the same time, the Income Tax Department has a mechanism to track government revenues and identify taxpayers. To make the system efficient and fool-proof, it was decided to issue PAN numbers which all taxpayers must possess to be able to carry out financial transactions legally.

When you apply for a PAN card, the Income Tax Department verifies your identity and address against government records. For example, your identity is verified against documents such as Aadhar card, voter ID, passport, driving license, etc.

PAN numbers are valid for life. However, if you change your address, you must inform the Income Tax Department to update your PAN card details.

So, this is PAN full form and it’s importance for financial management and filing taxes. But it’s also important to note that PAN cards are linking to other documents and records to ensure the identity of taxpayers is always verified.