Glossary · Finance & Payments

PAN (Permanent Account Number)

A PAN is a 10-character alphanumeric tax identifier issued to individuals and entities in India by the Income Tax Department and shown on a PAN card.

Updated October 6, 2026

A PAN (Permanent Account Number) is a 10-character alphanumeric identifier issued by India's Income Tax Department to individuals, companies and other entities for tax purposes. The physical or digital document carrying it is called the PAN card.

Why it matters

PAN links a person's or business's financial activity to a single tax record. It is commonly required for opening bank accounts, filing tax returns and certain high-value transactions, and it is embedded inside a business's GSTIN. Fintech and e-commerce platforms often collect it for compliance checks and verify it against government records.

Example

ABCDE1234F

The format is five letters, four digits and one letter. The fourth letter indicates the holder type (for example P for an individual, C for a company), and the fifth letter is usually the first letter of the surname or entity name. A regex such as ^[A-Z]{5}[0-9]{4}[A-Z]$ checks the shape only; it does not prove the PAN exists or belongs to the claimed person.

Common mistakes

  • Treating PAN as proof of address or identity by itself. It is a tax identifier.
  • Validating only the pattern. Real verification needs a lookup through an authorised service.
  • Confusing PAN with Aadhaar, which is a separate identity number.
  • Logging or emailing full PAN numbers casually, since they are personal data.

Rules vary by country; this entry is a definition only and not tax advice.

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