What is PAN (Permanent Account Number)?
PAN is a 10-character alphanumeric identifier issued by the Income Tax Department of India, required for financial transactions, tax filing, and TDS/TCS compliance.
PAN Usage in Business
PAN is mandatory for: opening bank accounts, making payments above ₹50,000, TDS deductions (higher TDS rate of 20% if payee has no PAN), filing income tax returns, and GST registration. Businesses must collect PAN from all suppliers and employees for accurate TDS and Form 26AS reconciliation.
PAN in ERPNext
Store PAN on Supplier and Customer masters in ERPNext. The Tax Withholding Category uses PAN availability to determine the correct TDS rate (lower rate if PAN provided, higher if absent). ERPNext's India Compliance features link PAN to GSTIN for party validation.
Infonoxe Technologies specialises in ERPNext implementation and custom software for Indian businesses.
Related Terms
Implement ERPNext for Your Business
Expert ERPNext implementation, customisation, and support for Indian businesses.