As per the RBI rule, Paypal.com has to validate your PAN Number. To get your PAN verified instantly on your PayPal Account what you need to do:
Provide a valid PAN and your name as it appears on your PAN Card.
Make sure that the name on your PAN Card matches the name on your PayPal Account.
Note that many users of Paypal in India reported the technical problems time to time when even after putting the right information, validation fails. In this case it is recommended to contact technical support of PayPal through their website.