The Permanent Account Number (PAN) is the backbone of India's tax system — quoted on returns, bank accounts, big transactions and every business registration. Individuals and entities both need one, and applying is quick. This guide covers who needs a PAN, the documents, the individual vs business process, and how PAN differs from TAN.
- A PAN is required to file returns, open bank accounts and run any business.
- Individuals apply online with ID, address and date-of-birth proof.
- A company's PAN is generated automatically as part of SPICe+ incorporation.
- If you deduct TDS you also need a separate TAN — not the same as PAN.
Who needs a PAN
- Every individual with taxable income or who files a return.
- Every company, LLP, partnership and trust — issued at incorporation for companies.
- Anyone entering into specified high-value transactions.
- Non-residents with taxable income or specified transactions in India.
Individual vs business PAN
| Individual PAN | Company PAN | |
|---|---|---|
| Applied via | Online (Form 49A) | SPICe+ at incorporation |
| Proofs | ID, address, DOB | Incorporation documents |
| Timeline | A few days | Issued with the COI |
How to apply
Apply online with identity, address and date-of-birth proof. For individuals it can be issued within a few days (with an e-PAN often faster). A company's PAN is generated as part of SPICe+ incorporation, so a newly registered company does not apply separately — see our company registration guide.
“PAN is the one number every taxpayer and business in India needs — it links your entire financial footprint to the tax system.”
Frequently asked questions
Can I hold more than one PAN?
No. Holding more than one PAN is not allowed and attracts a penalty. Surrender any duplicate immediately.
Is PAN mandatory to open a current account?
Yes. Banks require PAN to open business current accounts and for most significant transactions.
Does a proprietorship need a separate PAN?
No. A proprietorship uses the proprietor's individual PAN, since the business and owner are the same person for tax.
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