Who Is Required to Obtain a PAN in India?

A Permanent Account Number (PAN) is a ten-character identification number issued by the Income Tax Department. Section 139A of the Income-tax Act, 1961 and the applicable Income-tax Rules identify persons who must apply for PAN, including taxpayers, certain businesses and persons undertaking specified financial transactions.

Persons who are required to obtain PAN

1. Persons with income above the basic exemption limit: A person whose total income, or the total income of another person for whom that person is assessable, exceeds the maximum amount not chargeable to income tax in a previous year is required to apply for PAN. The applicable exemption depends on the relevant tax regime and taxpayer category.
2. Persons carrying on a business or profession: A person whose total sales, turnover or gross receipts exceed, or are likely to exceed, Rs. 5 lakh in a previous year must apply for PAN under Section 139A(1).
3. Charitable or religious trusts: A person required to furnish a return of income under Section 139(4A), including qualifying trusts receiving income from property held for charitable or religious purposes, must obtain PAN.
4. Other persons required to file specified income-tax returns: Persons covered by the additional return-filing categories referred to in Section 139A, including applicable cases under Section 139(4B) to 139(4D), must obtain PAN.
5. Specified high-value transactions: Persons entering transactions prescribed under the PAN-quoting rules may need to obtain or quote PAN, subject to the permitted declaration or alternative identification provisions.
6. Specified business entities: A resident person other than an individual entering a financial transaction aggregating Rs. 2.5 lakh or more in a financial year, and certain persons acting on behalf of such an entity, are covered by the requirements of Section 139A(1), subject to the statutory conditions.

PAN requirements for businesses and organisations

Companies, partnership firms, limited liability partnerships, trusts, associations and other entities commonly need PAN for income-tax filings, banking and financial transactions. A business may be required to obtain PAN even before it becomes liable to pay income tax.

Importers and exporters may also need PAN for customs and Importer Exporter Code processes, subject to the current rules and exemptions. PAN is relevant to GST registration and tax compliance, but those obligations arise under their respective laws and should not be confused with the separate statutory triggers in Section 139A.

Older provisions that should not be treated as current PAN rules

Earlier guidance sometimes referred to fringe benefit tax returns under Section 115WD, Central Excise registrations, CENVAT invoices, service tax and state sales tax registrations as general PAN categories. Fringe benefit tax was abolished, and GST replaced many of the earlier indirect tax regimes. Such historical references should not be relied upon as a current standalone list of PAN eligibility requirements.

Is PAN required for every financial transaction?

No. PAN is mandatory for specified transactions, subject to the applicable monetary thresholds and exceptions. Examples include certain property transactions, bank accounts, deposits, securities transactions and other payments identified in Rule 114B. The conditions vary by transaction type; consult the guide to transactions requiring PAN for more information.

Where the rules permit it, an eligible person who does not have PAN may furnish Form 60. Form 60 is not a general exemption from obtaining PAN when the law otherwise requires an application.

How to apply for PAN

Eligible applicants can use authorised PAN application services and the Income Tax Department's facilities. An instant e-PAN facility is available for eligible individuals with Aadhaar, subject to the conditions of that service. See the PAN application procedure for an overview.

Normally, one person should hold only one PAN. If personal details change, request a correction or update rather than applying for an additional PAN. See changes and intimation relating to PAN and when a fresh PAN is appropriate.

Legal references and official guidance

The principal provisions include Section 139A of the Income-tax Act, 1961 and Rules 114, 114A and 114B of the Income-tax Rules, 1962, as applicable. For authoritative updates, refer to the Income Tax Department e-Filing Portal and Income Tax Department website.

Updated: 10 October 2026. Statutory thresholds, procedures and applicability should be checked against the law and notifications effective on the relevant transaction date.