Identifiers · Glossary
PAN (Permanent Account Number)
10-character alphanumeric identifier issued by the Income Tax Department.
Updated 2026-10-08Source: Income-tax Act · CGST Act · CBDT/CBIC
What it means
PAN is your unique 10-character tax ID issued by the Income Tax Department under Section 139A of the Income Tax Act, 1961. Format: 5 letters + 4 digits + 1 letter. Required for: any taxable financial transaction, opening bank accounts, receiving TDS-deductible payments, filing ITR.
From 1 July 2023, PAN must be linked to Aadhaar under Section 139AA — an inoperative PAN is treated like no PAN until linked: TDS is generally 20%, or the section rate if higher, and 5% for e-commerce (194-O) and goods purchases (194Q) — Section 206AA up to FY 2025-26, s.397(2) of the Income-tax Act 2025 from 1 April 2026. Linking fee: Rs. 1,000 if past the deadline.
A worked example
A freelancer whose PAN went inoperative on 1 Jul 2023 (no Aadhaar link) gets Rs. 20,000 deducted as TDS on a Rs. 1L 194J invoice (20% under 206AA), instead of the normal Rs. 10,000. The extra Rs. 10K is recoverable at ITR — but only after linking PAN-Aadhaar first.
Don't share Aadhaar for tax purposes — always use PAN. Aadhaar disclosure to commercial entities is voluntary under the Aadhaar Act, 2016, and increases identity-theft surface area.
Look up the details
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- All 28 terms — the full glossary, by category.
Income-tax entries cite the Income-tax Act 1961, which governs FY 2025–26 (the return filed in 2026); from tax year 2026–27 the Income-tax Act 2025 applies, with new section numbers shown where we give them. GST law is unchanged. General information, not tax advice; verify with your CA before you file.
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