PAN refers to Permanent Account Number. This is a 10 digit alphanumeric number which is issued by the Income Tax Department of India. This number is unique to an entity or individual. Once this number is allotted, it remains unaffected by any change in the address, name or any other factor. Permanent Account Number is allotted in the manifestation of a laminated damage proof card.
The main objective of a PAN card is allotting a universally applicable identification key for tracking financial transactions that could have taxable component for preventing tax evasion.
Who all should apply for a PAN?
- Anyone who has a business with a turnover of INR 5,00,000 or more in the previous financial year.
- Any Indian or a foreign national who has a taxable income.
Benefits/Uses of a PAN card
Some main benefits/uses of this card are:
- It acts as a proof of your identity.
- It is a valid KYC document.
- If you want to remit funds out of India, a PAN card is needed.
- It is also needed for transferring money from NRE to NRO account.
- It is needed while applying for a loan and at many other places.
How can I apply for a PAN?
- In order to apply for a PAN, you have to get either Form 49A or Form 49AA, which soever is applicable to you.
- You need to submit the copies of your identity proof and address at the PAN card office along with some fee.
- You can also apply online through the income tax department website. If you opt to apply online, the processing fee is to be paid through debit or credit card.
This is a very nice basic tutorial. I understand that Pan Card is very important for all financial transactions and this card number is a unique one. This might track the financial transactions about the related persona and ill stop black money/Fraudulent money transactions through banks. This is a very clear blog that can be used as a reference. Nice write author!