Glossary

PAN (Permanent Account Number)

PAN (Permanent Account Number) is the 10-character ID the Income Tax Department issues to track your finances, and every demat account, bank KYC, and IPO application in your name is linked to it. By law, you can hold only one.

What It Means

PAN, or Permanent Account Number, is a 10-character alphanumeric ID the Income Tax Department issues to identify you across every financial transaction in India. Every demat account, every bank KYC record, and every IPO application you make gets tied back to this one number.

How It Works

You're allowed exactly one PAN for life, under Section 139A of the Income Tax Act. It doesn't matter how many demat accounts, brokers, or bank accounts you open. Every one of them ultimately traces back to the same PAN, which is exactly what lets an IPO registrar or a bank spot when the same person shows up twice under different account numbers.

Warning

Holding more than one PAN, even by accident, carries a ₹10,000 penalty under Section 272B of the Income Tax Act. If you've ended up with two, surrender the extra one instead of using it.

PAN (Permanent Account Number): Meaning & Rules | TraderStack