PAN stands for Permanent Account Number. PAN is a ten-digit unique alphanumeric number issued by the Income Tax Department. PAN is issued in the form of a laminated plastic card (commonly known as PAN card)

PAN is to be obtained by following persons:

• Every person if his total income or the total income of any other person in respect of which he is assessable during the previous year exceeds the maximum amount which is not chargeable to tax.

• A charitable trust who is required to furnish return under Section 139(4A).

• Every person who is carrying on any business or profession whose total sale, turnover, or gross receipts are or is likely to exceed five lakh rupees in any previous year.

• Every person who intends to enter into specified financial transactions in which quoting of PAN is mandatory Every non-individual resident persons and person associated with them if the financial transaction entered into by such non-individual resident persons during a financial year exceeds Rs. 2,50,000.

• A person not covered in any of the above can voluntarily apply for PAN.

It is mandatory to quote PAN on the return of income. Apart from return of income, PAN is also to be quoted in all challans for making payment of tax, correspondence with the Income Tax Department, etc.

However, w.e.f., 01-09-2019, every person who has been allotted a PAN, and who has linked his Aadhaar number with PAN as per section 139AA, may furnish his Aadhaar number in lieu of a PAN for all the transactions where quoting of PAN is mandatory as per Income-tax Act. Thus, with effect from September 1, 2019, an assessee can file his return of income by quoting his Aadhaar number instead of quoting PAN.

Taxpayer is required to login on e-Filing portal using his registered username and password. After login, he will get the “link Aadhaar” option under his ‘Profile Settings’.

Aadhaar number will be linked with PAN if name and date of birth of taxpayer is identical to Aadhaar and PAN.

While providing the full name, applicant should provide father’s name and hence, married female should provide father’s name and not husband’s name.

The Central Board of Direct Taxes has notified Rule 114AAA prescribing the manner and consequences if PAN becomes inoperative. The Rule 114AAA(2) provides that where a person, whose PAN has become inoperative, it shall be deemed that he has not furnished, intimated or quoted the PAN, as the case may be, and he shall be liable for all the consequences under the Act for not furnishing, intimating or quoting the PAN.

However, the person can reactivate his PAN by subsequently intimating his Aadhaar to the Department.