Overview: A Permanent Account Number (PAN) is more than a tax identifier. It is used to identify taxpayers and is required for income-tax filings, specified documents and prescribed financial transactions. The Income-tax Act, 2025 now governs PAN requirements, applications and quoting rules. This guide explains who needs PAN, including minors and businesses, how to download e-PAN, and what the law says about multiple PANs, surrender and Aadhaar linkage.
A Permanent Account Number (PAN) is a unique 10-character alphanumeric identifier issued by the Income Tax Department. It is used to identify taxpayers and is required to be quoted in income-tax returns, specified documents and prescribed financial transactions. PAN is governed by Section 262 of the Income-tax Act, 2025, which came into force on 1 April 2026. Existing PAN numbers continue to remain valid under the new law.
Having a PAN is different from the requirement to obtain one or quote it for a particular transaction. The rules also differ for individuals, minors, non-residents and business entities. This article covers these distinctions, along with e-PAN download, PAN correction, Aadhaar linkage, multiple PANs and surrender of an additional PAN.
Who Needs a PAN in India?
A PAN is required in several situations prescribed under the income-tax law. Section 262 of the Income-tax Act, 2025 requires a person who has not been allotted a PAN to apply for it when specified conditions are met. These include situations where:
- taxable income exceeds the basic exemption limit;
- a person carries on a business or profession where sales, turnover or gross receipts are likely to exceed ₹5 lakh during the tax year;
- the person is required to furnish an income-tax return;
- a non-individual resident enters into a specified transaction of ₹2.5 lakh or more in a tax year; or
- the person falls within specified categories connected with such an entity or transaction.
The law also allows a person who is not otherwise covered by the mandatory requirements to voluntarily apply for PAN.
PAN may therefore be relevant even where a person is not currently paying income tax.
Does Every Indian Citizen Need a PAN?
No. Indian citizenship by itself does not mean that every person must obtain a PAN.
A person may voluntarily obtain PAN, but compulsory allotment depends on the conditions prescribed under the Income-tax Act and Rules. Income, business or professional activity, return-filing requirements and specified transactions can trigger the requirement.
This distinction matters. A person cannot assume that having no PAN is automatically an offence. At the same time, a person who falls within a mandatory category should obtain PAN within the prescribed time.
The law also provides a mechanism for certain specified transactions where a person who does not have PAN may furnish the prescribed declaration instead. Under the Income-tax Act, 2025 and Income-tax Rules, 2026, Form 97 is used for the relevant non-PAN declarations, replacing the earlier Form 60.
Does a Minor Need a PAN?
A minor can have a PAN, but being a minor does not by itself mean that a PAN must be obtained in every case.
A PAN may be required where the minor has taxable income, has financial or investment activities requiring PAN, or falls within another prescribed category. A parent or guardian can apply on behalf of a minor.
There is an important distinction when using the Income Tax Department’s Instant e-PAN service. A minor is not eligible to use that facility.
PAN for NRIs and Foreign Persons
PAN is not restricted to Indian residents.
Non-resident individuals may need a PAN where their Indian income, tax obligations or specified transactions require it. Foreign citizens and foreign entities can also obtain PAN where required under the applicable provisions.
The current PAN framework provides separate application forms for different categories. From 1st April 2026, new PAN applications are made using the prescribed forms under the Income-tax Rules, 2026. Form 93 applies to individuals who are citizens of India, including NRIs and resident but not ordinarily resident individuals. Separate forms apply to non-individual Indian entities and foreign individuals or entities.
PAN for Companies, LLPs and Other Entities
PAN is also relevant to businesses and other legal entities.
Companies, limited liability partnerships, partnership firms, trusts and other entities may require PAN for income-tax compliance, banking, financial transactions and other regulatory requirements.
Section 262 specifically covers certain non-individual residents entering into specified transactions of ₹2.5 lakh or more in a tax year. It also identifies persons such as directors, partners, trustees, founders, chief executive officers and principal officers in specified circumstances.
A business should therefore treat PAN as part of its core statutory records rather than as an isolated tax document.
How to Apply for a PAN
Fresh PAN applications can be made online through the authorised PAN service providers, Protean eGov Technologies and UTIITSL, or through their designated application centres. The Income Tax Department identifies these two entities as the authorised service providers for PAN applications and related services.
From 1st April 2026, applicants must use the new PAN application forms introduced under the Income-tax Act, 2025 and Income-tax Rules, 2026. The earlier Forms 49A and 49AA are no longer used for fresh applications.
Applicants should provide the required identity, address and other supporting details applicable to their category.
How to Download e-PAN Online
An e-PAN is the electronic version of PAN issued by the Income Tax Department. It is a valid electronic document and can be used where an electronic PAN is accepted.
The process differs depending on whether a PAN has already been allotted.
If You Have Not Yet Been Allotted PAN
Eligible individuals can use the Income Tax Department’s Instant e-PAN service. It is free and uses Aadhaar-based verification.
The broad process is:
- Visit the Income Tax e-Filing portal.
- Select Instant e-PAN.
- Choose the option to obtain Instant e-PAN.
- Enter the Aadhaar number.
- Complete OTP authentication using the Aadhaar-linked mobile number.
- Complete the required verification.
- Download the digitally signed e-PAN once it is generated.
The facility is available only where the applicant has not already been allotted PAN. A person who already has PAN cannot use Instant e-PAN to obtain another one. Minors are also excluded from this facility. A valid Aadhaar linked to an active mobile number is required.
If You Already Have PAN
A person who already has PAN should not apply for another PAN simply because the physical card is lost or is not available.
Depending on the circumstances, the person can use the applicable e-PAN download, reprint or correction facility. UTIITSL, for example, provides an e-PAN download facility for existing PANs and a separate reprint facility when no changes are required in the PAN details.
If you lose your PAN card, do not apply for a new PAN. You can download the e-PAN for your existing PAN or request a reprint of the PAN card.
e-PAN vs Physical PAN Card
The e-PAN is a digitally issued electronic PAN document. A physical PAN card is the corresponding card format.
A person does not need a new PAN merely because they want a physical card after receiving an e-PAN. The PAN number remains the same.
The Income Tax Department recognises e-PAN as a valid electronic form of PAN. A physical PAN card for the same PAN can also be obtained through authorised providers.
PAN and Aadhaar: What You Should Know
The current PAN framework continues the requirement to link PAN with Aadhaar for persons covered by the applicable provisions. Section 262 of the Income-tax Act, 2025 provides for intimating Aadhaar in relevant PAN applications and returns and for making PAN inoperative where the prescribed Aadhaar requirement is not met.
There are, however, exempt categories. The consequences can also depend on when and how the PAN was allotted.
Can You Have More Than One PAN?
No. A person who has already been allotted PAN cannot apply for, obtain or possess another PAN. This rule is expressly contained in Section 262(8) of the Income-tax Act, 2025.
A person may have an e-PAN, a physical PAN card or a reprinted card, but the underlying PAN number should remain the same.
What Happens If You Have Multiple PANs?
Multiple PANs can arise through an accidental duplicate application, a change in personal details or simply because someone applied again after losing the original PAN.
The correct approach is not to continue using both numbers. The additional PAN should be surrendered through the applicable process.
A person who fails to comply with the PAN provisions may face a penalty of ₹10,000 under Section 467 of the Income-tax Act, 2025. The provision gives the Assessing Officer the power to impose the penalty.
The practical lesson is simple: never apply for a fresh PAN merely because the existing PAN card is lost, damaged or unavailable.
Can You Surrender a PAN?
Yes, but surrendering PAN should be done for a genuine reason and through the prescribed process.
The most common situation is a duplicate PAN. If two PAN numbers have been allotted to the same person, the additional PAN should be surrendered while retaining the PAN that should continue to be used.
What If You Do Not Have a PAN When It Is Required?
Not having PAN does not automatically mean that every financial activity becomes unlawful. The consequences depend on the transaction and the applicable requirement.
Where the law requires PAN, the person must comply with the prescribed requirement. For certain specified transactions, the new framework permits eligible persons without PAN to submit Form 97 instead.
PAN Correction, Reprint and Lost PAN
A change in your name, address or other PAN details does not require a new PAN. You should submit a PAN correction request to update the details.
If you lose your physical PAN card, you can download the e-PAN for your existing PAN or request a reprint of the card. Both carry the same PAN number.
If the PAN details themselves need to be changed, use the correction facility rather than applying for a fresh PAN.
PAN vs TAN: Do Not Confuse the Two
PAN and TAN are different identifiers.
PAN means Permanent Account Number. It identifies the taxpayer or entity.
TAN means Tax Deduction and Collection Account Number. It is required by persons or business entities responsible for deducting or collecting tax at source, subject to the applicable rules.
A company may therefore need both PAN and TAN. Having PAN does not automatically satisfy a separate TAN requirement.
FAQs
No. Citizenship alone does not make PAN compulsory. The requirement depends on income, business or professional activity, return-filing obligations and specified transactions under the law.
A minor can have a PAN where required. A parent or guardian can apply on the minor’s behalf. However, minors cannot use the Income Tax Department’s Instant e-PAN facility.
Yes. NRIs who do not have Aadhaar cannot use the Instant e-PAN facility. They must apply through the regular PAN application process using the prescribed form and documents applicable to their status. Form 93 requires a passport number from applicants who are non-residents or resident but not ordinarily resident.
No. Losing the physical card does not mean you need another PAN. You should download the e-PAN or apply for a reprint, depending on your requirement.
No. Section 262(8) prohibits a person who already has PAN from obtaining or possessing another PAN.
An additional or duplicate PAN should be surrendered. A person should not surrender their valid PAN merely because they have stopped using it without first considering their existing tax and legal obligations.
No. PAN identifies the taxpayer or entity, while TAN is used by persons responsible for tax deduction or collection at source.
SetIndiaBiz Support for PAN and Related Compliance
PAN requirements become more involved when they relate to a company, LLP, director, shareholder, foreign investor or a change in business structure. SetIndiaBiz supports business entities with PAN applications, corrections and reissue requirements for businesses and also handles documentation arising from incorporation and subsequent corporate changes.
The support extends beyond obtaining or downloading a PAN. SetIndiaBiz professionals help businesses with entity-level PAN requirements, director and authorised-signatory documentation, tax-registration coordination, changes in business particulars and related statutory compliance.
For companies and LLPs, keeping PAN details consistent across incorporation records, tax registrations, banking documents and other statutory records is part of maintaining clean corporate compliance. That is where professional review becomes valuable, particularly when a business is dealing with changes in directors, ownership, constitution or cross-border participants.
