Why is PAN card Important?
It is that end of the year when discussions about income tax and filing returns are heard in each home and office. After compulsory to linking with Aadhar card to pan card for file IT returns.
Most of the people didn’t know What is PAN card? What is that? It is a blue card that discovers your identity to track financial activity. Let’s take a look at it.
In pan card, you will find a cardholder name, photo, an alpha-numeric number and DOB.
What Is A PAN Card?
Permanent Account Number (PAN) card is a unique 10-digit alphanumeric number issued by the Income Tax Department to every individual. Find this type of number ABCDJ5456J on your pan card.
This number allows the IT department to monitor financial transactions of the cardholder. It also helps the Income Tax department to keep monitor of the tax paid by any individual.
In 1972 first card was issued. It is also issued to the foreign citizens and NRI such as investors.
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Why having a PAN card is necessary?
It is compulsory for an individual to declare his/her PAN when
- Opening a new Bank Account,
- Your payable salary or Professional fees
- In credit cards application
- While making certain High-value Transactions like hotels bills above Rs. 25,000.
- Buying a Property & a Car worth over a certain limit
- Buying or selling mutual funds or shares
- Applying for a Visa/Passport,
- Filing an Income Tax Return,
- Payment of Insurance
- High-value Jewelers purchase greater than Rs.5,00,000 (5 Lacks).
- While applying for a Bank Loan.
- In a single day, a cash deposit of Rs. 50,000 (Fifty Thousand) or more in the bank account.
Complete it, the Income Tax department is kept in the loop of one’s income, property details, investment and tax payment. It is illegal to avoid tax. PAN, therefore, acts as an identifier of the person with the income tax department.
Who must have PAN?
All taxpayers, a creator or manufacturer of excisable goods and service, anyone who intends to make financial transactions where mentioning PAN card number is mandatory and even those who provide a return of income, on behalf of others, must obtain PAN.
If you are planning to open new companies and trusts you should also have PAN number.
In 2008 Orissa, a three-month-old baby got PAN card, after a trust signed the baby up for modelling. Last year, a 5-day infant girl became the youngest PAN cardholder in India.
What are the Agencies Involved?
The card is issued under the direction of the CBDT (Central Board for Direct Taxes) by the Indian Income Tax Department.
There are two authorized agencies to accept PAN application forms
- UTI Investors Services Ltd (UTIISL)
- National Securities Depository Limited (NSDL)
How to Apply for Pan Card?
Pan Card Application is available at PAN Facilitation centres, located in your cities and municipalities, wherever Income Tax offices are placed. ‘Form 49A’ is also available online on the websites of the Income Tax Department, UTIISL and NSDL. You can easily apply online.
We have a detailed guide how to check Pan-card status.
PAN card allows the IT department to track financial transactions and to keep track of the tax paid or avoided by an individual.
Note: This Article is a guest post by Jayesh Jain.