PAN card is a permanent account number provided by Income Tax Department to income tax payer. The main purpose of PAN card is to make universal identification to all transactions and easily prevent tax evasion.
PAN is the unique identifier of Indian income tax payers, the card number in the form of XXXPL1234C.
The first three letters are a sequence of alphabets from AAA to ZZZ.
The fourth character informs about the type of holder of the card. Each holder is uniquely defined.
PAN card is not compulsory for every indian people especially if you not engage in a large financial transaction and do not file income tax return. But you can also get PAN card even if you do not file a tax return.
Uses of PAN Card
IT Returns Filing: Who is eligible for Income tax are expected to file their IT returns. A PAN card is necessary for the filing of Income Tax returns.
Buying or Selling: If you want to buy or sell some stuff worth more than Rs. 5,00,000 then you need to provide PAN card during the transaction.
Opening New Bank Account: You can also use PAN card as an identity proof during the opening a new bank account. Now PAN card is compulsory during opening a new bank account whether it is current or savings account.
Apply for a Credit or Debit card: If you wish to apply for a new debit card or credit card then compulsory you need to submit PAN card details. If you do not submit this details then your card is no issue.
Proof of Identity: You can use PAN card as a proof of identity during applying for a new passport, driving license, voter ID, etc.
Purchase of Jewellery: If you purchase jewelry of over Rs. 5,00,000 then you need to submit PAN card details during the time of purchase.
Foreign Exchange: For exchange your indian currency to foreign currency you must need to provide PAN card details.
Fixed Deposits: When you invest your money into Fixed Deposit amount of Rs. 50,000 or above you will have to provide PAN card.
Some Other Uses of PAN Card
- To start a new business.
- If you wish to buy & sell a property, open investment account.
- To apply for loans/mortgages.
- For transferring funds from NRE to NRO account.
Advantages of PAN Card
- PAN is accepted as a proof of identity because of it carries your name, signature, address & photograph.
- If you are NRI, then you can easily buy property in India with the help of your PAN without filing tax returns.
- You can easily operate a minor account with the PAN card of the guardian.
- Allows the government to keep a track of all financial transactions.
- Easily do financial transactions, purchase new landline and cell phone connection, open a demat account and buy & sell the property.
- The PAN number is unique to every PAN card holder. In case if your card may get lost or stolen then don’t worry your PAN will remain unchanged. And you easily get PAN card download online for free.
A PAN card is a very important proof in india that can help you gain access to many services of government. If you don’t have PAN card then you can easily apply for a new card online.
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