Benefits of Furnishing a Permanent Account Number

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Oct. 16 – As per Section 206 AA, any individual who receives any sum or income or amount on which tax is deductible shall furnish his/her permanent account number (PAN) to the tax deducting authority. Failure to furnish a PAN card will attract tax deductions at higher rates under the following terms:

  1. At the rate specified in the relevant provision of this Act; or
  2. At the rate or rates in force; or
  3. At the rate of 20 percent.

An individual and the deductor will furnish the individual’s PAN card number in the entire communication, bills, vouchers and other documents which are sent to each other. If the PAN card number provided by an individual is incorrect/invalid then it is considered that an individual has not furnished his PAN details to the deductor and the provisions of sub-section (1) shall apply accordingly.

For clarification or further details concerning permanent account numbers, please contact Dezan Shira & Associates.

Dezan Shira & Associates is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. Since its establishment in 1992, the firm has grown into one of Asia’s most versatile full-service consultancies with operational offices across China, Hong Kong, India, Singapore and Vietnam as well as liaison offices in Italy and the United States.

For further details or to contact the firm, please email, visit, or download the company brochure.

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