Who is Liable to Obtain PAN in India? Updated 2026 Guide
Permanent Account Number, or PAN, is a unique tax identifier allotted by the Income Tax Department. From April 1, 2026, the principal law governing PAN is section 262 of the Income-tax Act, 2025, read with Rule 158 of the Income-tax Rules, 2026. This article explains who must apply for PAN, the current statutory thresholds, the applicable time limits and the forms used for fresh PAN applications.
Legal Basis for Obtaining PAN
Section 262 of the Income-tax Act, 2025
Section 262 is the main statutory provision relating to Permanent Account Number. It provides the framework for allotment, application, quoting, authentication and use of PAN, and authorises the prescribing of categories of persons, documents and transactions for which PAN is required.
Rule 158 of the Income-tax Rules, 2026
Rule 158 prescribes the application process for allotment of PAN, the forms to be used, the categories of persons required to apply, the time within which an application must be made and the supporting documents required for different applicant classes.
Official Rule 158 Income-tax Act, 2025 and Rules, 2026
Who is Required to Obtain PAN?
Under Rule 158, a person who has not already been allotted PAN must apply where any of the following categories applies:
| Category | When PAN is required |
|---|---|
| Income above the maximum amount not chargeable to tax | Where the total income of the person, or the total income of another person in respect of which that person is assessable, exceeds the maximum amount not chargeable to income-tax in a tax year. |
| Business or profession | Where the person carries on any business or profession and the total sales, turnover or gross receipts are, or are likely to be, more than Rs. 5,00,000 in a tax year. |
| Person required to furnish a return of income | Where the person is required to furnish a return of income under section 349 and has not already been allotted PAN. |
| Person receiving a sum subject to TDS or TCS provisions | Where the person is entitled to receive a sum, income or amount on which tax is deductible or collectible under Chapter XIX-B during a tax year. |
| Resident non-individual entering substantial financial transactions | Where a resident person other than an individual enters into a financial transaction or transactions aggregating to Rs. 2,50,000 or more in a tax year. |
| Key persons connected with such resident non-individual | The managing director, director, partner, trustee, author, founder, karta, chief executive officer, principal officer, office bearer or other person competent to act on behalf of the person referred to above must also obtain PAN if not already allotted one. |
| Person intending to enter prescribed transactions | A person intending to enter a transaction prescribed under section 262(1)(f) or section 262(9)(a) may be required to apply for PAN before entering that transaction. |
Time Limit for Applying for PAN
| Person | Time within which PAN application is to be made |
|---|---|
| Person whose income exceeds the maximum amount not chargeable to tax | On or before May 31 of the tax year immediately succeeding the tax year for which the income is assessable. |
| Person carrying on business or profession with sales, turnover or gross receipts above Rs. 5,00,000 | Before the end of that tax year. |
| Person required to furnish a return of income under section 349 | Before the end of the tax year. |
| Person entitled to receive a sum or income subject to deduction or collection of tax | Before the end of that tax year. |
| Resident non-individual entering transactions of Rs. 2,50,000 or more | On or before May 31 immediately following that tax year. |
| Director, partner, trustee, karta, office bearer or other specified person connected with the above entity | On or before May 31 immediately following the tax year in which the entity enters into the specified financial transaction. |
| Person intending to enter a prescribed transaction | At least seven days before the date on which the person intends to enter into the transaction. |
PAN Application Forms from April 1, 2026
The Income-tax Rules, 2026 replaced the old fresh PAN application Forms 49A and 49AA with new forms. The correct form depends on the legal status and citizenship or place of formation of the applicant.
| Form | Applicant |
|---|---|
| Form 93 | Individual who is a citizen of India. |
| Form 94 | Non-individual Indian entity. |
| Form 95 | Individual who is not a citizen of India. |
| Form 96 | Non-individual foreign entity. |
The Income Tax Department confirms that the corresponding old provisions were section 139A and Rule 114, while the current provisions are section 262 and Rule 158.
Official PAN Information Official PAN Forms FAQ
Documents Generally Required for PAN
Rule 158 prescribes documentary requirements according to the applicant category. Depending on the form, the applicant may need proof of identity, proof of address, proof of date of birth and documents showing incorporation, registration or formation.
For an Indian individual, accepted documents may include Aadhaar, passport, driving licence, elector photo identity card and other documents listed in Rule 158. Different requirements apply to non-individuals, foreign citizens and foreign entities.
For a detailed procedural guide on this website, see how to apply for PAN and documents required.
PAN for Specified Financial Transactions
Even where a person does not fall within the ordinary income or business tests, PAN may still be required because the person intends to enter into a transaction for which PAN must be quoted or applied for under Rule 159 or another prescribed PAN provision.
See transactions for which quoting of PAN is mandatory for the current transaction-wise thresholds.
Outdated Categories Removed from Earlier PAN Guidance
Older PAN material sometimes listed categories linked to fringe benefit tax, Central Excise, CENVAT invoices, service tax or State sales tax registration. Those references reflected earlier statutory regimes and are not the present PAN-liability criteria under section 262 and Rule 158. Current liability should be tested against the Income-tax Act, 2025 and Income-tax Rules, 2026.
Frequently Asked Questions
Does every person earning income need PAN?
Not necessarily. One important trigger is where total income exceeds the maximum amount not chargeable to income-tax. Other separate triggers can apply even where that income test is not met, including business turnover, return-filing obligations and prescribed financial transactions.
Is PAN mandatory for a small business?
A person carrying on business or profession who is not otherwise covered must apply for PAN where total sales, turnover or gross receipts are, or are likely to be, more than Rs. 5,00,000 in a tax year.
Does a company or partnership need PAN?
Non-individual entities may require PAN under several provisions, including return-filing obligations and financial-transaction rules. A resident non-individual entering transactions aggregating to Rs. 2,50,000 or more in a tax year is specifically covered by Rule 158, and specified persons connected with that entity may also be required to obtain PAN.
Do existing PAN holders need to apply again under the 2026 law?
No. Existing PAN numbers continue to remain valid. The change in statutory provisions and application forms does not by itself require an existing PAN holder to obtain a new PAN.
When should a fresh PAN not be obtained?
PAN is intended to be a unique identifier. If a PAN has already been allotted, changes in name, address or other particulars should ordinarily be dealt with through the PAN correction process rather than by applying for another PAN. See when a fresh PAN is required.
What if a person does not have PAN for a specified transaction?
Depending on the transaction, the current rules may require the person to apply for PAN or may permit a prescribed declaration. See declaration where PAN is not held, subject to the current 2026 rules.
Last updated: September 6, 2026. PAN provisions, forms and monetary thresholds may be amended. Verify the current Act, Rules and official Income Tax Department instructions before filing an application or entering into a transaction.