The Permanent Account Number (PAN) is a 10-digit alphanumeric unique identification number issued by the Income Tax Department of India under the provisions of Section 139A of the Income Tax Act, 1961. It serves as an essential identity proof for individuals, firms, and entities conducting financial transactions.

2. Structure of PAN

Example: ABCDE1234F

  First five characters: Letters (representing alphabets and entity type)

  Next four characters: Numbers

  Last character: Alphabet (check digit).

3. Importance of PAN

 Used for filing Income Tax Returns (ITR).

  Required for high-value financial transactions (like bank deposits, property purchases, etc.).

  Serves as proof of identity across India.

  Helps in tracking taxable financial activities of individuals and organizations.

  Mandatory for opening bank accounts, mutual funds, credit cards, and loan applications.

4. Issuing Authority

PAN is issued by the Income Tax Department through authorized agencies:

  NSDL e-Governance Infrastructure Ltd (now Protean eGov Technologies Ltd)

  UTI Infrastructure Technology and Services Ltd (UTIITSL)

Applications can be made online through their official portals or through designated PAN centres.

5. Types of PAN Holders

Individual

Hindu Undivided Family (HUF)

Company / Firm / LLP

Trust / Association of Persons (AOP)

Government Agency or Local Authority

6. Rectification / Correction of PAN

Sometimes, errors may occur in the PAN record such as wrong name, date of birth, father’s name, or address. To correct such details, the PAN holder can apply for Rectification or Correction of PAN.

Procedure for PAN Rectification:

1. Application Form: Use Form 49A (for Indian citizens) and select 'Changes or Correction in PAN Data'.

2. Documents Required:

  Proof of Identity (Aadhaar, Passport, etc.)

  Proof of Address

  Proof of Date of Birth

  Existing PAN Card copy

3. Submission: Apply online through NSDL (www.protean-tinpan.com) or UTIITSL (www.pan.utiitsl.com).

4. Fees: Nominal processing fee.

5. Issuance: A corrected PAN card is issued with the same PAN number but updated details.

7. Duplicate or Reprint of PAN

If a PAN card is lost, stolen, or damaged, the applicant can request a reprint of the same PAN card number using the same online process, without any data change.

8. Legal Provisions

Under Section 272B of the Income Tax Act, a penalty of ₹10,000 may be imposed for quoting a false or incorrect PAN or for failure to quote PAN where required.

Conclusion

The PAN is a vital identification tool ensuring transparency and accountability in financial transactions. Timely rectification of any errors helps maintain accurate records and avoids complications in tax filing or financial dealings.