Explanation
PAN is issued under Section 139A of the IT Act 1961 (§263A in IT Act 2025). Format: AAAAA1234A (5 letters, 4 digits, 1 letter — the 5th letter indicates the type: P=individual, C=company, H=HUF, F=firm, B=BOI, A=AOP, etc.). Mandatory for filing ITR, demat accounts, mutual fund investments > ₹50,000, property purchases > ₹10 lakh, salary/TDS credit, and many financial transactions. Must be linked to Aadhaar by the deadline (check portal) — unlinked PANs become inoperative and TDS is deducted at 20% under §206AA. Apply online at the NSDL or UTIITSL portal. Verify on the income-tax portal.