PAN/ TAN registration is
necessary for financial transactions
Permanent Account Number (PAN) is the tax identification
number for persons resident in India issued by the Income-tax Department. It is applicable to all persons/
entities including individuals, partnerships, HUF, LLP, Companies and Non-Resident Indians and Foreign
Companies. The PAN for a sole proprietorship is the same as that of the individual. It is a unique,
10-character Alphanumeric identifier. The fourth digit indicates the nature of the entity – such as P for
Individual, C for company, F for partnership firm. The fifth digit indicates the first letter of the name of
the entity.It is necessary for filing of tax returns and various financial transactions such as opening of
bank accounts, real estate transactions, making investments and dealing in foreign exchange.