What is Permanent Account Number? Section 139A of Income Tax Act 1961

Section 139A of the Income Tax Act, 1961 contains provisions relating to allotment, quoting and use of Permanent Account Number (PAN). PAN is a unique identification number allotted by the Income-tax Department for identifying taxpayers and tracking financial transactions.

Definition of Permanent Account Number

Under Section 139A, Permanent Account Number means a number allotted by the Assessing Officer to a person for the purpose of identification. A PAN allotted under the new series consists of ten alphanumeric characters.

Persons required to obtain PAN

Persons covered under Section 139A include persons whose income exceeds the maximum amount not chargeable to tax, persons carrying on business or profession crossing the prescribed turnover limit, persons required to furnish returns and other notified categories.

Application for allotment of PAN

A person who is required to obtain PAN and has not been allotted a PAN shall apply to the Assessing Officer within the prescribed time and manner.

Quoting of PAN

Every person shall quote PAN in income-tax returns, correspondence with income-tax authorities, challans for payment of tax and prescribed documents relating to specified transactions.

PAN and Aadhaar provisions

Section 139A also provides situations where Aadhaar number may be furnished or quoted in place of PAN in accordance with the provisions of the Income Tax Act and applicable rules.

Restriction on multiple PAN

No person who has already been allotted a PAN shall apply for, obtain or possess another PAN.

Important points

  • PAN is used as a taxpayer identification number.
  • PAN must be quoted in prescribed tax and financial transactions.
  • Changes in name, address or business details should be intimated as required.
  • Possession of more than one PAN is prohibited.

Section 139A Income Tax Act 1961

The section authorises the Government and the Central Board of Direct Taxes to prescribe procedures, forms and categories of transactions where PAN or Aadhaar quoting is required.