Permanent Account Number in India is currently the most important economic document. After the instructions issued by the Reserve Bank of India, it has become an essential document to ease any kind of financial transaction. While the country's economic exchanges are monitored accurately by the government through PAN, citizens have convenience in many financial activities by having a Permanent Account Number (PAN). Let us know about the various dimensions related to PAN.
The full name of PAN is Permanent Account Number. It is a 10 digit unique number, which is issued by the Income Tax Department in India under the Income Tax Act, 1961. A laminated PAN card is issued under the supervision of the Central Board of Direct taxes for PAN number. PAN card is required in almost every type of financial transaction. It is illegal to obtain or hold more than one PAN. PAN card is also used as an official identity card. The name of the person, father's name, date of birth and PAN number are mentioned in the PAN card. However, it cannot be used as an address proof. Since demonetization, on the advice of the Government of India, the Reserve Bank of India has made it mandatory for all account holders to link PAN with Aadhaar.
PAN consists of an alphanumeric unique character of 10 characters. For example refer to this PAN: AIBWA5678P
The first five characters in it are from the English alphabet. The last also has an alphabet. The fifth alphabet is related to the name of any person or organization. After this there are 4 numerical digits from 6 to 9 characters.
PAN card is a mandatory document in the context of opening a savings account, current account in any bank. Also, if you want to deposit more than 50 thousand rupees in any account, then it is necessary to mention PAN. PAN card is also necessary in the context of taking a credit card or loan from the bank. PAN card is necessary even if you want to make FD more than 50 thousand in the bank.
Filing of Income Tax Return Under Income Tax Certification Course has been made mandatory for all. PAN is an extremely essential fact for filing Income Tax Returns. You have to give details of income and payments for the year in your income tax return. All these details are recorded with reference to PAN only. It is only through the PAN that the government is able to keep accurate monitoring of financial transactions. It is a mandatory fact for any Income Tax Officer to write PAN for all correspondence. Also, it is mandatory to provide PAN details on the challan for any payment due to the Income Tax Department (section 139A (5) a and b).
PAN is also an important document for you in the context of using or trading forex. Authorized money exchange bureaus or banks may ask for PAN for providing foreign exchange related facilities. It is mandatory for you to provide PAN even if you are earning in foreign currency.
It is mandatory to have a demat account for investing in the stock market. The Securities and Exchange Board of India (SEBI), the regulatory body of the stock market, has made it mandatory to attach a PAN card to open a demat account for investment in the stock market. If you invest more than 50 thousand rupees in the stock market in mutual funds, bonds, and debentures, then it is mandatory to provide PAN card details.
If you buy an insurance policy for which the premium amount is more than 50,000 per annum, then you have to provide Permanent Account Number (PAN) details. This fact is mandatory for all types of insurance policies.
If you buy a vehicle worth more than Rs 5 lakh, then PAN details have to be given at the time of buying the vehicle. Also, it is mandatory to give PAN details even for the sale of high value there.
According to the guidelines issued by the Government of India from January 1, 2016, if you buy jewelery worth more than two lakhs, then you have to provide PAN details. Whether this purchase is done with cash or by card. Also, PAN is required for payment of more than Rs 25,000 in hotels etc. on going for tourism.
If you are associated with the field of sports, art, literature or science and you get prize money of Rs 1 lakh or more in any competition at the national or international level, then for that also you need to give PAN details. The winners of TV reality shows and quiz competitions also have to provide PAN details.
9. Importance with Respect to Purchase and Sale of Property:
In India, PAN has now been made mandatory for buying, selling or renting a property worth Rs 5 lakh. The PAN of both the buyer and seller is recorded in the sale deed of the property.
Permanent Account Number is becoming increasingly important in the context of financial surveillance in the country by the government. With this, the government gets instant information about the incidents of tax evasion. The mention of makes it easy to monitor every financial transaction.
Any citizen of India can apply for PAN Card. No age limit has been fixed for normal PAN card but the minimum age limit to apply for instant PAN card generated with the help of Aadhar card is 18 years. it occurs. Any foreign national can also apply for Permanent Account Number.
Identity proof, address proof and date of birth proof are required to get a PAN. As proof of identity, any document has to be given as Passport, Voter ID Card, Aadhar Card, Ration Card, Driving License, Photo Identity Card issued by the State or Central Government. Whereas for address proof, one of the documents has to be given as Passport, Aadhar Card, Voter ID Card, Driving License, Post Office Passbook, Property Registration Certificate. Aadhar Card, Voter ID, Driving License, Passport, Matriculation Certificate, any one of the documents issued by the Municipal Authority is required for proof of date of birth. If the PAN applicant is a minor, then any of the above documents of any of his/her parents will serve as a proof of identity.
PAN card can be made online or offline. To apply online for PAN, one has to login to the website (www.tin-nsdl.com) and fill Form 49A. To make PAN card offline, you have to visit the nearest service center. Required documents, two latest photographs and payment of prescribed fee. After applying for PAN, you get a tracking number from which you can check the status of PAN card generation. Normally, the PAN card is generated in four to five days. If there is any kind of error in the PAN card, then it takes 7 to 10 days to update after applying. Applicants who cannot sign are required to get the official seal and stamp on Form 49A attested by a Magistrate or a Notary Public or a Gazetted Officer by affixing the applicant's left thumb impression at the designated place of signature.
PAN is a permanent number so there is no need to change PAN when you move from one place to another. PAN remains valid throughout the life of the holder.
In the context of today's changing economic scenario, Permanent Account Number (PAN) has become a strong essential element of economic activity. While it makes financial transactions easy for citizens, it has also become a strong basis for the government to monitor economic transactions. Overall, it can be said that PAN has been recognized as one of the most important economic documents today.
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