PAN is an abbreviation for permanent account number. It is a 10-digit alphanumeric unique identification number that is issued by the Income Tax Department in the form of a laminated card. PAN is mandatory during the filing of an income tax return. PAN is mandatory for all taxpayers.
Individuals and registered business entities are required to have a PAN card. This includes export businesses as well.
The entire process of PAN allotment is handled by NSDL e-Governance Infrastructure Limited (formerly National Securities Depository Limited) and UTI Infrastructure Technology Services Limited (UTIITSL).
General Uses of PAN :
- Since PAN contains basic information such as Name, Date of birth and photograph, It can be used as a valid identity document throughout India.
- PAN card acts as Identity proof.
- It is helpful to keep track of your tax payments.
- As the PAN number is very unique for every individual, It’s almost impossible to misuse for the purpose of taxation.
- Taxpayers need to provide their PAN number while paying their Income tax.
- In case of Sale or Purchase of Property
- Any payments made more than Rs. 50,000 towards deposits.
- PAN is used to avail the basic requirements such as:
- Opening Bank account
- Getting Internet and Landline connections
- In order to remit any money out of India
- In case of any transfer of funds from NRE to NRO account.
- In case of any purchase of Mutual Funds.
- If you are required to take out a loan, you are supposed to provide the details of PAN.
- If you are making an Insurance payment exceeding Rs. 50,000/- a year, PAN details are required to be furnished.
Conclusion
A permanent account number is a ten-digit alphanumeric number. It is a unique identification number that is issued by the Income Tax Department. A PAN card is mandatory for filing Income Tax Returns.
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