- You end up using your Permanent Account Number (PAN) often, but do you know why it’s issued by the tax department? PAN enables the department to identify all the transactions of a tax assessee, including income earned, tax deducted and paid, tax returns and other specified transactions.
- It is mandatory for individuals to obtain PAN if the income earned during a financial year is taxable. If you are an individual below 60 years of age, an income of ₹2.5 lakh or more is taxable; for senior citizens (above 60 years of age), income of ₹3 lakh or more is taxable; and for very senior citizens (above the age of 80 years), an income of ₹5 lakh or more is taxable.
- PAN is valid across India and for the assessee’s lifetime. PAN identity does not change even if the address of the assessee or the assessing officer changes. However, any change in the details provided at the time of applying for PAN, such as address, should be intimated to the tax department through the form, titled “Request For New PAN Card Or/And Changes or Correction in PAN Data”.