This number is almost mandatory for financial transactions such as opening a bank account, receiving taxable salary or professional fees, sale or purchase of assets above specified limits.
The primary purpose of PAN is to bring a universal identification key factor for all financial transactions and indirectly prevent tax evasion by keeping a track of monetary transactions of high net worth individuals.
The PAN is unique, national, and permanent. It is unaffected by a change of address, even between states.
Structure and validation
PAN structure is as follows: AAAAA9999A: First five characters are letters, next 4 numerals, last character letter
Each assesse is uniquely identified by the PAN
If the PAN does not follow the above structure, then the PAN will be shown invalid
The fourth character of the PAN must be one of the following, depending on the type of assesse: