INCOME TAX LAW | UPDATED OCTOBER 2026

Section 139A of the Income-tax Act, 1961: Permanent Account Number (PAN)

Who must obtain a PAN, when it must be quoted, how Aadhaar rules apply, and what changes under Section 262 of the Income-tax Act, 2025.

Current-law position: The Income-tax Act, 2025 took effect on 1 April 2026. Its Section 262 addresses permanent account numbers and related Aadhaar requirements. Section 139A of the 1961 Act remains relevant when interpreting earlier years and saved proceedings. Existing PANs continue to be valid; a new PAN is not required merely because the law changed.

What is a Permanent Account Number?

A Permanent Account Number (PAN) is a unique ten-character alphanumeric identification number allotted by the Income Tax Department. Under the explanation to Section 139A, PAN identifies a person for income-tax purposes; it is not restricted to taxpayers who presently owe income tax. A person should ordinarily hold only one PAN.

Section 139A is the principal PAN provision in the Income-tax Act, 1961. The current framework is consolidated in Section 262 of the Income-tax Act, 2025, subject to the applicable rules and notifications.

Who was required to apply for PAN under Section 139A(1)?

The statutory categories include the following, subject to prescribed time limits and applicable exemptions:

Income threshold: A person whose own total income, or another person's income for which the person is assessable, exceeds the basic exemption limit.
Business or profession: A person carrying on business or profession with sales, turnover or gross receipts exceeding, or likely to exceed, Rs. 5 lakh in a previous year.
Specified return filers: Persons required to furnish a return under Section 139(4A), including relevant charitable or religious trusts.
Resident non-individual entities: A resident other than an individual entering financial transactions aggregating Rs. 2.5 lakh or more in a financial year.
Persons acting for those entities: Managing directors, directors, partners, trustees, authors, founders, kartas, chief executive officers, principal officers, office-bearers and other competent representatives covered by the provision.
Prescribed transactions: Persons intending to enter transactions notified or prescribed for PAN purposes.

The historical text also referred to employers filing fringe-benefit returns; the fringe-benefit-tax regime is no longer operative. Government notifications can require additional classes, including specified importers and exporters, to obtain PAN. Do not assume the general income threshold is the only test.

Application, allotment and changes in particulars

Mandatory and voluntary allotment

Section 139A(1A) and (1B) permitted notification-based requirements for specified classes. Subsection (2) allowed allotment by the tax authority in prescribed cases, while subsection (3) permitted voluntary applications. Subsection (4) dealt with transition to the ten-character PAN series; persons already allotted a PAN under that series were not required to apply again.

For applications made on or after 1 April 2026, the Income Tax Department states that the new forms prescribed under the Income-tax Rules, 2026 apply. Applications pending on 31 March 2026 remain valid. See the official income-tax forms FAQ for the applicable new forms and procedures.

Updating PAN details

Changes in name, address or relevant business particulars should be updated through the authorised PAN correction process. A correction to an existing PAN is different from applying for a second PAN.

Where PAN must be quoted and verified

Section 139A(5) required PAN to be quoted in income-tax returns, correspondence with income-tax authorities, tax-payment challans and prescribed transaction documents. The later subsections addressed PAN reporting in tax-deduction and tax-collection records and verification by persons receiving prescribed transaction documents.

Under Rule 114B of the Income-tax Rules, 1962, PAN quoting was required for specified transactions, subject to thresholds and exceptions. Examples include certain immovable-property transactions, high-value cash deposits, purchases and financial investments. The threshold and documentation requirement depend on the particular transaction and the rules applicable on its date; no single monetary threshold applies to all transactions.

Persons without PAN may be eligible to furnish the prescribed declaration in permitted cases; exemptions are not universal. For transactions from April 2026, consult the corresponding Income-tax Rules, 2026 rather than relying only on historical Rule 114B.

PAN in TDS and TCS records

Sections 139A(5A) to (5D) addressed furnishing and quoting PAN by payees, deductors, buyers and collectors. Failure to furnish PAN may affect tax deduction or collection under the applicable statutory provisions, including Section 206AA of the 1961 Act for relevant earlier periods.

PAN and Aadhaar: linking and authentication

Section 139AA of the 1961 Act prescribed Aadhaar quoting and linkage requirements for persons within its scope, subject to statutory exemptions and notifications. The 2025 Act addresses PAN and Aadhaar together under Section 262. A PAN may become inoperative where mandatory linkage requirements are not met, with consequences prescribed by the relevant rules.

Eligibility, exemptions, permitted identity documents and restoration procedures should be checked on the Income Tax Department e-Filing portal. Not every person is subject to the same Aadhaar requirement.

Section 262 of the Income-tax Act, 2025

With effect from 1 April 2026, Section 262 is the principal provision for Permanent Account Numbers and associated Aadhaar requirements. It corresponds broadly to the earlier Sections 139A and 139AA, but the actual wording of the 2025 Act and the Income-tax Rules, 2026 must be consulted for current obligations. The repeal-and-savings provisions preserve the operation of the earlier law where applicable to earlier tax years and proceedings.

Practical point: The Income Tax Department confirms that PAN and TAN already allotted before 1 April 2026 continue to remain valid. There is no general requirement to obtain a replacement number solely because of the new Act.

Frequently asked questions

Is PAN mandatory if I do not pay income tax?

It can be. PAN requirements may arise from business turnover, specified transactions, entity status or other statutory categories even when tax payable is nil.

Do I need a new PAN after 1 April 2026?

No. Existing PAN numbers continue under the Income-tax Act, 2025.

Can a person have more than one PAN?

No. The statutory scheme prohibits obtaining or possessing multiple PANs under the new series. Use the official correction or surrender procedure where necessary.

Does every transaction above Rs. 2.5 lakh require PAN?

No. The Rs. 2.5 lakh figure in Section 139A(1)(v) concerns a specific category of resident non-individual persons. Separate transaction-wise PAN-quoting rules may prescribe different thresholds.

Official law and practical resources

This article explains the general statutory framework. Check the current Act, rules, notifications and relevant tax year before acting on a specific transaction.