A business example
A founder starts a company after previously freelancing as an individual.
Earlier activity
Freelance receipts belonged to the individual's taxpayer identity.
New entity
The company has its own income-tax identity.
Transaction check
The customer uses the PAN of the actual contracting supplier.
What this shows
Copying the founder's PAN into every company document mixes two taxpayers. Match the identifier to the person earning the income.
What it is often confused with
A company's PAN and a director's personal PAN identify different taxpayers.
What to look at in your business
Match the name and status on tax records with the entity entering the transaction.
Context and further reading
Income Tax Department: PAN. The department identifies PAN as its ten-character alphanumeric taxpayer identifier.
Reference checked 2 October 2026.
Kosha.Services · Updated 2 October 2026