Section 262: allotment of Permanent Account Number

Who must apply for a PAN

A person who has not been allotted a PAN must apply for one, within the prescribed time, if any of the following conditions is met:

• Their total income, or the total income of a person they are assessable for, exceeded the maximum amount not chargeable to income-tax in any tax year
• They carry on a business or profession whose total sales, turnover or gross receipts are or are likely to exceed ₹5,00,000 in any tax year
• They are required to furnish a return of income under Section 263 for any tax year
• They are a resident (other than an individual) entering into a financial transaction aggregating ₹2,50,000 or more in a tax year
• They are the managing director, director, partner, trustee, author, founder, karta, CEO, principal officer or office bearer of such a resident entity, or a person competent to act on its behalf
• They intend to enter into a transaction as may be prescribed by the Board in the interest of revenue

Voluntary application

Any person not covered by the mandatory conditions above may still apply to the Assessing Officer for a PAN, which will then be allotted.

Quoting PAN and updating details

Every person must quote their PAN in all returns to, or correspondence with, any income-tax authority, and in all challans for payment of any sum due under the Act.

Every person must intimate the Assessing Officer of any change in address or in the name and nature of their business on which the PAN was allotted.

Aadhaar quoting and linking

Every person eligible to obtain an Aadhaar number must quote it in the PAN application form and in the return of income.

A person who already has a PAN and is eligible for Aadhaar, but hasn't yet linked it, must intimate their Aadhaar number to the prescribed income-tax authority in the prescribed form and manner - failing which, the PAN will be made inoperative in the prescribed manner.

A person who has not been allotted a PAN but possesses an Aadhaar number may furnish or quote the Aadhaar number instead, and will then be allotted a PAN in the prescribed manner. A person who already has a PAN and has intimated Aadhaar may likewise quote either number.

One PAN per person

A person who has already been allotted a PAN cannot apply for, obtain, or possess another PAN.

Authentication for specified transactions

For transactions to be prescribed by the Board, every person entering into such a transaction must quote and authenticate their PAN or Aadhaar number in the related documents, and every person receiving such a document must ensure the PAN/Aadhaar is duly quoted and authenticated.

Rule-making and notified exemptions

The Board may make rules on the form, manner and time for PAN applications, classes of persons required to apply, categories of documents requiring PAN, the declaration format for those without a PAN, authentication manner, and classes of persons exempted from this section.

The Central Government may, by notification, specify classes of persons (including those liable to pay tax or duty under any law, and importers/exporters even where no tax is payable) required to apply for PAN within a notified time.

The Aadhaar-linking requirements do not apply to persons, classes of persons, or States/parts of States that the Central Government notifies as exempt.

Frequently asked questions