PAN stands for Permanent Account Number. A PAN number is a ten-digit number in alphabets and numerical, or in 'alphanumeric' terms, that is allocated by the income tax department to all the taxpayers, and is unique with each individual. A PAN number helps the authorities keep track of the financial activities of any individual, as PAN is integral to all forms of payments. A PAN number is allotted through a laminated card, which is called a PAN card. A PAN card contains information like PAN number, Name, DOB, and address.

A person cannot hold more than one PAN. In case one applies for the PAN card but it gets delayed, the individual re-applies and ends up receiving two PAN cards with different numebrs. A penalty of Rs. 10,000 is liable to be imposed under section 272B of the Income Tax Act, 1961 for having more than one PAN. If a person has been allotted more than one PAN then he should immediately surrender the additional PAN cards.