PAN stands for Permanent Account Number. PAN is a ten-digit unique alphanumeric number issued by the Income Tax Department. PAN is issued in the form of a laminated plastic card (commonly known as PAN card). Given below is an illustrative PAN: AMAPA5809L

PAN enables the department to link all transactions of the assessee with the department. These transactions include tax payments, TDS/TCS credits, returns of income, specified transactions, correspondence and so on. It facilitates easy retrieval of information of assessee and matching of various investments, borrowings, and other business activities of assessee.​

​​​A Permanent Account Number has been made compulsory for every transaction with the Income-tax Department. It is also mandatory for numerous other financial transactions such as the opening of bank accounts, in a bank account, a deposit of cash in a bank account, opening of Demat account, transaction of immovable properties, dealing in securities, etc. A PAN card is a valuable means of photo identification accepted by all Government and non-Government institutions in the country.​

PAN is a ten-digit unique alphanumeric number issued by the Income Tax Department. The formation of PAN is discussed below : Out of the first five characters, the first three characters represent the alphabetic series running from AAA to ZZZ. (E.g. ALWPG5809L).  The fourth character of PAN represents the status of the PAN holder (E.g. ALWPG5809L).
"A" stands for Association of Persons (AOP)
"B" stands for Body of Individuals (BOI)
"C" stands for Company
"F" stands for Firm/Limited Liability Partnership
"G" stands for Government Agency
"H" stands for Hindu Undivided Family (HUF)
"J" stands for Artificial Juridical Person
"L" stands for Local Authority
"P" stands for Individual
"T" stands for Trust

The fifth character of PAN represents the first character of the PAN holder's last name/surname in the case of an individual. In the case of non-individual PAN holders, the fifth character represents the first character of the PAN holder's name (E.g. ALWPG5809L)

The next four characters are sequential numbers running from 0001 to 9999 (E.g. ALWPG5809L).

The last character, i.e., the tenth character is an alphabetic check digit (E.g. ALWPG5809L).

The combination of all the above items gives the PAN its unique identity.

PAN application can be filled up in the following forms -
1. Form 49A (for Indian Citizens)
2. Form 49AA (for Foreign Citizens)
While submitting the PAN application form, the applicant will have to indicate whether a physical PAN card or E-PAN card is required.
If the applicant opts for a physical PAN Card, then physical PAN card will be printed & dispatched at the communication address.
If the physical PAN Card is not required. In such cases, email ID will be mandatory & e-PAN Card in PDF format will be sent to the PAN applicant at the email ID mentioned in the PAN application form. Physical PAN Card will not be dispatched in such cases.
In case of an applicant, being a company that has not been registered under the Companies Act, 2013, the application for allotment of a Permanent Account Number is to be made in Form No. SPICE-INC-32 specified under sub-section (1) of section 7 of the said Act for incorporation of the company.​ (Application for TAN is also to be made through SPICE-INC-32)
Note: w.e.f. 01-07-2017, every person who is eligible to obtain Aadhaar number shall quote either Aadhaar number or enrolment ID of Aadhaar application form in the PAN application form.

​​​​​If the PAN card is lost or you wish to have a new PAN card with existing details, then you can apply for duplicate PAN card by submitting the Form for "Request for New PAN Card Or/ and Changes or Correction in PAN Data" and a copy of FIR may be submitted along with the form.

Permanent Account Number (PAN) card, issued by an IT Department, is one of the most important documents in these days
It is mandatory to quote PAN on the return of income, all correspondence with any income tax authority. From 01-01-2005 it has become mandatory to quote PAN on challans for any payments due to Income Tax Department.
The compulsory requirement to quote PAN in all documents about the following financial transactions:-
(a) sale or purchase of any immovable property valued INR 5,00,000 or more;
(b) sale or purchase of a vehicle, [the sale or purchase of a motor vehicle or vehicle does not include two-wheeled vehicles, inclusive of any detachable side-car having an extra wheel, attached to the motor vehicle;]
(c) a time deposit, Fixed deposit, exceeding INR 50,000, with a bank or banks;
(d) a deposit, exceeding INR 50,000, in any account with Post Office Savings Bank;
(e) a contract of a value exceeding INR 1,00,000 for sale or purchase of securities;
(f) To open a bank account;
(g) making an application for installation of a telephone connection (including a cellular telephone connection);
(h) payment to hotels and restaurants against their bills for an amount INR 25,000at any one time ;
(i) payment in cash for the purchase of bank drafts or pay orders or banker's cheques for an amount aggregating INR 50,000 or more during any one day;
(j) deposit in cash aggregating INR 50,000 or more with a bank during any one day;
(k) payment in cash in connection with travel to any foreign country of an amount exceeding INR 25,000 at any one time.
(l) making an application for the issue of credit card or debit card.
(m) payment of an amount of INR 50,000 or more to a Mutual Fund for purchase of its units;
(n) payment of an amount of INR 50,000 or more to a company for acquiring shares issued by it;
(o) payment of an amount of INR 50,000 or more to a company or an institution for acquiring debentures or bonds issued by it;
(p) payment of an amount of INR 50,000 or more to the Reserve Bank of India
(q) payment of an amount aggregating INR 50,000 or more in a year as life insurance premium to an insurer
(r) payment to a dealer,—
(i) of an amount of INR 5,00,000 or more at any one time; or
(ii) against, a bill for an amount of INR 5,00,000 or more, for purchase of bullion or jewelry

In the case of E-Pan 5 Working days. Physical Pan 10 working days.

Anyone resident of India can apply. In case NRI forms and fees will differ.

​​​​​​​A person cannot hold more than one PAN. If a PAN is allotted to a person, then he cannot apply for obtaining another PAN. A penalty of Rs. 10,000/- is liable to be imposed under​​Section 272B​ of the Income-tax Act, 1961 for having more than one PAN.
If a person has been allotted more than one PAN then he should immediately surrender the additional PAN card(s).

​​PAN obtained once is valid for the lifetime of the PAN-holder throughout India. It is not affected by the change of address or change of Assessing Officer etc. However, any change in the PAN database (i.e. details provided at the time of obtaining PAN) should be intimated to the Income Tax Department by furnishing the details in the form for “Request For New PAN Card Or/ And Changes Or Correction in PAN Data”