PAN stands for Permanent Account Number is a standard way to identify Indian taxpayers. It is basically a sole identification number given to the citizens of India who are mostly tax payers. The entire PAN system is directed towards assigning a single identification number to the taxpaying individuals of the country and is entirely computer based. A single PAN helps the government to keep a track of all the transactions done by the individual and maintain a record of the same against a single PAN number. Every individual is assigned a different PAN. No two taxpaying individuals can have a same PAN.
The entire concept of PAN is more or less similar to the Social Security Number also known as SSN which is followed in the US. It is a nine digit identification number given to residents of the US, whether a permanent resident or a temporary one. Initially, designed for the purpose of social security.It is now known as the basic recognition number for taxation purpose.
PAN once issued holds true for the complete lifespan of the PAN holder. PAN card doesn’t carry the address of the holder, hence, stays unaltered by any kind of changes in the residential address of the individual.