PAN (Permanent Account Number): meaning, format and new forms
PAN is the 10-character income-tax identifier issued by the Income Tax Department. From 1 April 2026, PAN applications use new Forms 93 to 96.
Short answer
A PAN (Permanent Account Number) is a unique 10-character alphanumeric identifier issued by the Income Tax Department to individuals, companies, firms and other entities. It is needed to file income-tax returns, receive income without higher TDS, open bank accounts and carry out many financial transactions. Under the Income-tax Act, 2025, PAN provisions are in section 262.
- Length
- 10 characters
- Provision
- Section 262, Income-tax Act 2025 (formerly section 139A)
- Application forms
- Forms 93 to 96 from 1 April 2026 (replacing 49A and 49AA)
- Companies
- PAN allotted with incorporation
How to read a PAN
A PAN has five letters, four digits and one letter. The fourth character shows the type of holder, such as P for an individual, C for a company, F for a firm or LLP, H for a Hindu undivided family and T for a trust. For individuals, the fifth character is the first letter of the surname; for entities, it is the first letter of the name. The last character is a check letter.
How to apply
Companies and LLPs receive PAN automatically on incorporation through SPICe+ or FiLLiP. Other applicants apply online through the authorised PAN service portals. From 1 April 2026, the old Forms 49A and 49AA were replaced by four new forms under the Income-tax Rules, 2026: Form 93 for Indian individuals, Form 94 for Indian companies and entities, Form 95 for foreign individuals and Form 96 for foreign entities. Individuals with Aadhaar can get an instant e-PAN on the e-filing portal.
Why it matters for startups
Your company's PAN is printed on the incorporation certificate and is needed for the bank account, TAN, GST registration and every tax filing. Founders, foreign directors and investors need PANs too, for example to receive dividends or sell shares without higher withholding. Quote PAN correctly in every TDS-related transaction to avoid mismatches in Form 168, the statement that replaced Form 26AS.
Related services
Sources
- Business Today: income-tax forms changing from 1 April 2026
- EZTax: Income-tax Act 1961 vs 2025 section mapping
- Income Tax Department e-filing portal
Written by the Refogo Editorial Team from the official sources above and checked on 2026-10-31. Laws, rates and due dates change, and authorities often extend deadlines, so confirm your own case with a qualified professional. This is general information, not legal or tax advice. Read our editorial policy or report an error to support@refogo.com.
Common questions
Can a person have two PANs?
No. Holding more than one PAN is not allowed, and a duplicate must be surrendered.
Do foreign companies need a PAN?
A foreign company earning taxable income in India, or receiving payments subject to TDS, generally needs a PAN to avoid higher withholding rates.
Is PAN required for GST registration?
Yes. GST registration is PAN-based, except for a few categories such as non-resident taxable persons.