Quick answer: Section 139A of the old Income Tax Act, 1961 — the section dealing with Permanent Account Number (PAN) — is now Section 262 in the new Income Tax Act, 2025. The PAN rules, who must have a PAN, and the quoting requirements all continue unchanged. Only the section number is different.
What Section 139A Covered
Section 139A dealt with the Permanent Account Number (PAN). It covered:
- Who must apply for PAN: Anyone whose income exceeds the basic exemption limit, businesses with turnover above Rs. 5 lakh, and certain other categories.
- Quoting PAN: You had to quote your PAN in returns, challans, and high-value transactions.
- PAN for TDS/TCS: Deductors had to quote PAN, and higher TDS applied if PAN was not furnished (Section 206AA).
- Penalty: A penalty of Rs. 10,000 for not having or quoting PAN where required.
PAN is the single most important tax identifier in India. Almost every financial transaction above a threshold needs it.
What Changed in the New Act
The PAN provisions are now under Section 262 of the Income Tax Act, 2025. The substance is the same:
| Provision | Old Act | New Act |
|---|---|---|
| PAN application requirement | 139A | Section 262 |
| Quoting PAN in documents | 139A | Section 262 |
| Higher TDS without PAN | 206AA | New section (check mapping) |
| Penalty for PAN default | 272B | New section (check mapping) |
Your existing PAN remains fully valid. You do not need to apply for a new one.
What Stays the Same
- Your PAN number and PAN card are unchanged — no re-application needed.
- All places where PAN quoting is mandatory (bank accounts, property, investments) stay the same.
- The Rs. 10,000 penalty for PAN-related defaults continues.
- Aadhaar-PAN linking requirement continues as before.
- Higher TDS rate (20%) for missing PAN continues.
Where PAN Is Mandatory
You need to quote your PAN in a long list of situations. The most common ones:
| Situation | Threshold |
|---|---|
| Opening a bank account (except basic savings) | Always |
| Buying or selling property | Above Rs. 10 lakh |
| Buying a car (not two-wheeler) | Always |
| Fixed deposit | Above Rs. 50,000 |
| Mutual fund investment | Rs. 50,000 and above |
| Foreign travel payment | Cash above Rs. 50,000 |
| Hotel bills | Cash above Rs. 50,000 |
Banks, mutual funds, and registrars will simply refuse the transaction if you do not provide PAN. It is that central to the system.
PAN vs Aadhaar: What Is the Difference?
People often confuse the two. Here is the simple version:
- PAN is your tax identity. It tracks your income, investments, and tax payments. It is issued by the Income Tax Department.
- Aadhaar is your general identity. It is used for KYC, subsidies, and verification across services. It is issued by UIDAI.
- The two are linked, not merged. You still need both. PAN remains the primary number for all tax matters.
There was talk of using Aadhaar in place of PAN for some filings, but PAN continues as the main tax identifier under the new Act.
What If Your PAN Is Inoperative?
If you did not link your Aadhaar with PAN by the deadline, your PAN became inoperative. This means:
- Higher TDS (20%) on your income.
- You cannot get tax refunds.
- Form 15G/15H declarations do not work.
To fix it: link your Aadhaar on the income tax e-filing portal and pay the late fee (Rs. 1,000). Your PAN becomes operative again within a few days of linking.
Practical Impact for You
1. Zero action needed: This is one mapping where you literally need to do nothing. Your PAN works exactly as before.
2. New applications: If you apply for a PAN now, the application form (49A/49AA) may reference the new section number. The process on the NSDL or UTIITSL portal is unchanged.
3. For CAs and professionals: Engagement letters, checklists, and compliance calendars should be updated to cite Section 262 instead of Section 139A.
4. Inoperative PAN: If your PAN became inoperative due to missing Aadhaar linking, the reactivation process continues under the new Act. Link your Aadhaar and pay the fee to reactivate.
Frequently Asked Questions
Do I need a new PAN under the new Act?
No. Your existing PAN is fully valid and continues for life. The section number change does not affect your PAN in any way.
Is Aadhaar-PAN linking still required?
Yes. The linking requirement continues. If not linked, your PAN becomes inoperative and higher TDS applies. Link it on the income tax portal and pay the prescribed fee if delayed.
What is the penalty for not quoting PAN?
The penalty of Rs. 10,000 for failure to apply for, quote, or intimate PAN continues under the new Act’s penalty provisions.
Where do I quote my PAN?
The same places as before — income tax returns, TDS certificates, bank accounts, demat accounts, property transactions above Rs. 10 lakh, vehicle purchases, and other high-value transactions.
Official Sources
- Income Tax Department — official source for verification
- India Code — official source for verification
Reviewed by Asuthod Rathod, CA. Last updated: 10 October 2026. Based on the Income Tax Act, 2025 as notified. PAN rules are subject to CBDT notifications — check incometax.gov.in for updates.
Rohan has been writing about Indian income tax for over 5 years. He breaks down complex tax rules into simple language that anyone can understand. His guides focus on practical filing tips, deduction strategies, and keeping up with the new Income Tax Act 2025.