A Permanent Account Number (PAN) is a unique ten-digit alphanumeric identifier issued by the Income Tax Department of India. It is primarily used for tracking financial transactions and ensuring that individuals and entities comply with tax regulations. PAN is essential for filing income tax returns, opening bank accounts, and conducting high-value transactions. The PAN is linked to an individual's or entity's financial records, making it easier for the government to monitor tax payments and prevent tax evasion. It is mandatory for various financial activities, including investments, property purchases, and receiving taxable income.