What is PAN Card?
PAN card is known as the Permanent account number. It is known as a way of making the identification of various taxpayers in the country or tracking the financial transactions of the citizens. It is a unique identification number assigned to an individual who pays taxes in India. The identification system of PAN is a computer-based system that assigns to every Indian paying Tax entity.
What is the idea behind having a PAN Card?
PAN Card is the same as the Social Security member or SSN used in the United States. The aim of having SSN is to track individuals for social security purposes. It becomes a primary identification number for taxation processes. PAN card issued under the Indian Income Tax Act, 1961 under the supervision of the Central Board for Direct Taxes (CBDT).
Need for PAN Card?
- To file IT returns you would need a PAN card. It is the main reason that everyone applies for the PAN card.
- PAN card is important when you are planning to apply for a loan. Every bank and other institution that lends loans require PAN card details to get a loan application approved. Not only these but educational and personal loan also requires a PAN card for verification.
- If you have a PAN card, you can easily open a current bank account or savings account. No matter whether it’s a Co-operative Bank, Public sector bank or Private sector bank.
- If you are depositing cash of more than 50,000 at a time, as per RBI rules, it is being made compulsory to provide PAN card details.
- If you are planning to invest more than 50,000 in a bank in the form of Fixed deposits, then also need to give PAN Card details. It is very important as TDS is being deducted by the bank on interest gained through FD.
- If you wish to go for buying mutual funds, debentures or bonds for transactions of more than Rs 50,000, then also PAN card is an essential document.
- Bank institutions, Money exchange bureaus are also felt in need of PAN card details for currency conversion.
- It is mandated to provide a PAN card details at the time of applying for a credit card or debit card.
- Worth of all vehicles more than 5,00,000 requires PAN Card details both at the time of buying or selling.
- PAN card also worked as an identity proof so it can be used while applying for other Government identity proof.
- If you have purchased a jewelry worth more than 5,00,000 then also required to provide the PAN details.
- To make an insurance payment which exceeds Rs 50,000 a year, for that also there is a need to provide PAN card details.
What is the new design of the PAN Card?
- The Income Tax Department comes up with a new format of PAN card that is issued after January 01,2017. A quick response (QR code) has been printed onto the new PAN Card which will carry details of the card holder. This QR code can be used for the data verification
- Secondly, new sections for the name of the cardholder, in this cardholder’s father name and date of birth have been added.
- The location of PAN and signature of the cardholder also being changed.
- PAN number of every individual is different as no two people who are tax entities can have the same PAN Number.
What is the validity of the PAN card?
PAN Card is valid for the entire lifetime as PAN number does not changes even you update any information.
What are different types of PAN Card?
For Individuals
PAN card for individuals is the most common and can be applied through Form 49A, which is available online on the Income Tax Department, NSDL and UTIITSL websites. The category includes resident Indians. Indian minors and students are also eligible to apply for a PAN card.
For NRIs or other Persons of Indian origin
NRIs and PIOs can avail a PAN Card for taxation purposes in India. They can do so by applying for a PAN card through Form 49A.
For foreign entities paying tax in India
Firms or large corporate, which are registered outside India and pay taxes in India can also avail of a PAN Card. They can do so by filling out the Form 49AA.
For OCI and NRE
Overseas Citizens of India (OCI) and Non-Resident Entities (NRE) can also apply for a PAN Card in India. They can do so by applying for the PAN card using Form 49AA.
For Indian Companies
Firms and corporate entities that are registered and operational in India can also apply for a PAN Card. They need a PAN card for financial and tax-related transactions.
How to fill the PAN Card application?
There are two ways in which PAN Card Application can be made either online at the NSDL website or by applying in any PAN agencies at a district level by visiting at the agency as an offline mode. There are two forms of PAN application, one is for the citizen of India, 49 A and the other is 49AA, for foreigners. PAN application can be made both for new PAN and as well as reprint and correction of your existing PAN Card. To make the application process a success, please provide all the required documents to support the application.
Application form for new PAN and reprint of PAN is different. Once the user makes any of the above PAN card application then he or she can easily track the status of PAN with the help of acknowledgment number furnished by NSDL.
