PAN is the abbreviation form of the permanent account number. A small card consisting of the unique 10-digit number is called PAN card. The 10-digit code is issued by the income tax department of India under the supervision of the Central board for direct taxes (CBDT). Those who earn a taxable income should have PAN card.
While opening a bank account, or doing a large amount of money transaction PAN is required everywhere. There are different money transaction limits for buying different products and services.
The PAN number helps the income tax department to monitor the money transaction of each of PAN card holder. In fact, how much tax they are paying, that also can be observed and it is necessary for those who want to file the income tax return.
The applicant for PAN card can be Indian or Non-resident Indians who pay tax here or the overseas citizen of India card holders. While the Indians have to apply with the 49A application form, the foreigners have to apply with the 49AA form.
One can apply for a PAN card online. Just go to the NSDL (National Securities Depository Limited) site and you can apply for PAN card by submitting required documents including valid proofs of the name, address, image. The charges for getting a PAN card can be sent online. Pan cards can also be obtained by applying to the centres established by NSDL.
Facts and Various Usages of PAN
We often use PAN card as an identity proof and it is well-accepted everywhere as PAN card contains the name, photograph, and address of the holder and it is valid for the rest of the life once it is issued. Pan card can’t be used as a proof of Indian citizenship. Apart from this PAN card has other uses too.
Applying for a loan
PAN card is mandatory while applying for a loan, you need to submit your permanent account number to the those who are lending money to you. From educational loan, home loan to business loan, submitting your PAN number is mandatory.
Investing money or making a fixed deposit
If you are planning to invest money or thinking about making a fixed deposit in the bank. Then you have to submit your PAN card number there if the transaction money is more than 50,000.
Even if you are depositing money to any bank account and the amount is more than 50,000 you have to submit your PAN details. It is a rule made by the RBI. PAN is also required if you are paying for insurance.
Buying or selling motor vehicle
Buying or selling any motor vehicle, or any other property that costs more than 50,000 requires the submission of the PAN number while having the transaction. Even if you are purchasing jewelry costs more than 50,000 that also requires PAN number.
Applying for debit/credit cards
When you are applying for a credit card or debit card to any Bank, submitting your PAN details is mandated by the regulations of RBI.
Applying for the tax return
If you are earning a taxable amount of money, then you are supposed to file the income tax return and while applying for the tax return, you have to submit your pan card details.
As per section 139A of income tax act 1961, one can have only a single PAN card. In case, you lose your card, you can apply for duplicate PAN card or can reprint it. For more such information follow nritaxeservice.in