The PAN — Ten characters that follow your money

A Permanent Account Number is ten characters issued by the Income Tax Department, and it never changes. Its job is to tie your bank account, salary, investments, and large purchases to one identity, so income can be matched against spending. It is required for a bank account, a demat account, and most large transactions.

• The fourth character says what kind of holder it is. P is an individual, C a company, H a Hindu Undivided Family, F a firm.
• Holding two PANs is an offence carrying a penalty. If a second one was ever issued by mistake, it has to be surrendered rather than ignored.