Updated 29 May 2025 at 11:38 IST
The Permanent Account Number, commonly known as PAN, is a 10-character alphanumeric code issued by the Income Tax Department of India.
It plays a crucial role in tracking and linking all financial and tax-related transactions of individuals and entities. From filing Income Tax Returns (ITR) to opening bank accounts, investing in mutual funds, or securing a gas connection, PAN is indispensable.
During the ITR season, the relevance of PAN becomes even more critical. A valid PAN is mandatory for filing income tax returns. Without it, your return can’t be processed. It’s a legal identity and financial document that acts as a unique identifier for all tax-related transactions.
Why PAN Matters More Than Ever
The importance of PAN goes beyond just tax filing. It helps the Income Tax Department consolidate a taxpayer’s transactions such as:
Payment of taxes
TDS/TCS credits
Income returns
High-value financial transactions
Correspondence and notices
This unique number enables efficient tracking of all financial activities, making tax evasion difficult and enhancing transparency in the financial ecosystem. For salaried individuals, business owners, and investors, having a PAN is non-negotiable, especially with the increasing digitisation of financial systems.
Challenges with Traditional Physical PAN Cards
While the significance of a PAN card is undeniable, the traditional process of acquiring a physical card is cumbersome and time-consuming. Once the application is submitted, it typically takes two weeks or more for the PAN card to be verified, printed, and delivered.
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This delay can be problematic, particularly during the ITR season or when one urgently needs a PAN for tasks like:
Opening a bank account
Applying for loans
Registering a property transaction
Investing in shares and mutual funds
The Government's Digital Answer: e-PAN Service
To eliminate delays and enhance user experience, the Income Tax Department introduced the e-PAN service, which enables instant issuance of PAN cards to individuals possessing a valid Aadhaar number.
The e-PAN is a digitally signed document available in PDF format. It is generated based on the e-KYC data linked to the applicant's Aadhaar. Best of all, it is completely free of cost and available in real time.
The service is part of the government’s Digital India initiative to simplify tax administration and encourage prompt compliance.
How to Instantly Apply for an e-PAN
Here’s a step-by-step guide to get your PAN instantly:
Visit the e-Filing Portal:
Go to https://www.incometax.gov.in/iec/foportal/
Access Instant e-PAN Application:
On the homepage, select “Instant e-PAN”, then click on “Get New e-PAN”.
Enter Aadhaar Details:
Fill in your 12-digit Aadhaar number. Accept the declaration and click ‘Continue’.
OTP Authentication:
You will receive a 6-digit OTP on your Aadhaar-linked mobile number. Enter it to verify your identity.
Validate with UIDAI:
Consent to validate your Aadhaar with UIDAI. Your demographic data will be pulled automatically.
Download Your e-PAN:
After successful submission, an acknowledgement number will be generated. Select “View e-PAN” and “Download e-PAN” to get your digital card.
Optional: Validate or Link Your Email ID
Although optional, linking or validating your email ID can help in future verifications:
If your Aadhaar-linked email is updated but not validated, click Validate Email, enter the OTP, and proceed.
If the email is not yet linked, click Link Email ID and follow the OTP process.
A Step Toward Seamless Taxation
With the deadline for ITR filing approaching fast, having a PAN—especially an instantly accessible e-PAN—can save you from unnecessary last-minute hurdles. The digital transformation of the PAN issuance process ensures that every Indian citizen can meet tax obligations without delay.
Published 29 May 2025 at 11:38 IST