Income Tax
PAN (Permanent Account Number)
Unique 10-character alphanumeric identifier issued by the Income Tax Department to every taxpayer.
Full Definition
Permanent Account Number (PAN) is a unique 10-character identifier (e.g., ABCDE1234F) issued by the Income Tax Department under Section 139A of the Income Tax Act. Every individual, firm, company or entity with taxable income or financial transactions must have a PAN. It is required for: filing ITR, opening bank accounts, making investments above certain limits, property transactions, foreign remittances, and filing GST applications. Loss of PAN card can be addressed by applying for a duplicate using the NSDL/UTI portal.
More Income Tax terms
ITR (Income Tax Return)
Annual declaration filed with India's Income Tax Department reporting income, deductions and tax paid.
AY (Assessment Year)
The year in which income earned in the previous financial year is assessed and taxed.
FY (Financial Year)
The 12-month period from April 1 to March 31 during which income is earned and recorded.
TAN (Tax Deduction Account Number)
10-character number required by entities that deduct or collect tax at source (TDS/TCS).
TDS (Tax Deducted at Source)
Tax deducted from payments by the payer and deposited with the government on behalf of the payee.