Permanent Account Number

PAN

Beginner Level India Taxation 2 views

Definition

A unique 10-character alphanumeric identifier issued by the Income Tax Department to taxpayers.

Detailed Explanation

PAN is mandatory for filing tax returns, opening bank accounts above certain limits, and high-value transactions. It tracks all financial transactions and prevents tax evasion.

Example

PAN format: ABCDE1234F - first 5 letters, 4 numbers, 1 letter.

Local Context (India)

PAN has become a universal financial identity in India, linked to Aadhaar for comprehensive tracking.

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