We are sure you’ve heard about PAN Card issued by the Income Tax Department of India; most of you might even have one, right? In fact, nowadays even while opening a bank account, PAN Card seems to be a necessity. However, do you know why this PAN Card is issued or why we should all keep a PAN Card handy for all the adult members of the family? Well, if you don’t, you needn’t worry anymore for this list brings to you all the details that you need to know about your PAN Card. Here you go—
PAN Card, issued by the Department of Income Tax, India, also doubles up as an important proof of identification, and can be used by a person in place of his/her voters’ ID card in case of matters related to identification. In general, it is a card issued under Indian Income Tax Act of 1961 to all the people who are entitled to pay taxes, or who have any form of bank account in their names. The 10 digit alphabet-numeric PAN card number is unique to all the holders of this card.
The primary use of the PAN Card is to identify and keep all your major financial transactions under one single whole so that they may be traceable while paying the Annual Income Tax and hence, prevent any kind of fraudulent activities or Tax Evasion. By issuing a PAN Card, you’re maintaining a thorough transparency for all the transactions made.
The best thing about this card is that it is valid throughout your lifetime. So, once this card is made, you’re not liable to renew it or make a new one. It is also unaffected by the change in your address.
Well, any kind of bank transactions, shopping, house rents, jewelry purchases, payments at hotels and restaurants and payment of any kind of bills that exceeds Rs. 25,000 in cash or credit must be identified by the PAN Card. This saves a lot of Tax and without any effort, is viewed as legal purchases.
Also Read: 5 Empowering Ways For Indian Women To Secure Their Financial Future
Like any Government Card, obtaining a PAN Card can be a bit irksome, but with the new and advanced techniques, it has become a lot easier nowadays. The best way is to fill up an Online Application Form; and, if that’s a bit troublesome, you may also download the form 49A, and submit to your nearest authorized PAN agency. In case you’ve submitted it online, simply take a print out of the submitted form and affix two passport sized photographs and the other necessary documents and send it across with a DD of Rs. 105 to the mentioned address.
In case, you want to change some misinformation in the PAN Card that you’ve received, just click the option Reprint at their website.
For a fresh PAN Card, you’d need a proof of identification which might be any one of the below written documents:
Along with this, you would also be required to furnish a resident proof—both present and temporary Electricity bill—
Well, yes. NRIs or no, every Indians whose income is taxable must have a PAN Card issued. And any business personality with an annual turnover of more than 5 lakhs, must have a PAN Card. And, if any one wants to keep their adolescent children as the nominee of any kind of bank accounts or financial matters, PAN Card is a necessity for them too.