This article provides information about PAN (Permanent Account Number) card, which is issued by the Income Tax Department of India. The PAN card is a unique 10-digit alphanumeric code that is used as an identification number for individuals, families, and businesses in India. It contains important information such as the name of the holder, date of birth, and photograph.
The following are some key points related to PAN in India:
Section 139A of the Income-tax Act, 1961 prescribes various conditions under which an assessee is required to obtain PAN. Any person who earns taxable income in India or carries out business activities in India must have a PAN card.
There are two ways to apply for a PAN card: online and offline.
(a) Offline: You can download the form from the NSDL or UTIITSL website or get it from any TIN-FC (Tax Information Network Facilitation Centre). Fill out the form and submit it along with supporting documents and fees at any TIN-FC.
(b) Online: You can apply for a PAN card online through NSDL or UTIITSL website by filling out an application form and submitting it along with supporting documents and fees.
What documents are required to apply for a PAN card?
To apply for a PAN card, you need to submit proof of identity (such as Aadhaar Card, Voter ID Card), proof of address (such as Passport, Driving License), and proof of date of birth (such as Birth Certificate).
You can link your Aadhaar with your PAN through online or paper mode. (a) Online: By visiting the website of the PAN Service providers (i.e., www.protean-tinpan.com or www.utiitsl.com). Click on the button ‘Link Aadhaar to PAN’ which will direct you to the income-tax website. By visiting directly the e-filing website (i.e., www.incometaxindiaefiling.gov.in). (b) Paper mode: File one page Form along with minimal fee with the designated PAN centre. Copies of PAN card, Aadhaar card are to be furnished.
What is the penalty for not having a PAN card?
If a person is required to have a PAN card but does not have one, he/she may be subject to a penalty of Rs. 10,000.
A PAN card is used for various purposes such as filing income tax returns, opening a bank account, buying or selling property, investing in mutual funds or shares, applying for loans or credit cards, and many other financial transactions. It is also used as a proof of identity and address in India.
A PAN card is a crucial document for individuals, families, and businesses in India. It is used as a unique identification number for various financial transactions and other purposes.
Some of the key uses of a PAN card are:
1. Filing Income Tax Returns: A PAN card is mandatory for filing income tax returns in India. It helps the Income Tax Department to track the tax payments and income of an individual or business.
2. Opening Bank Accounts: A PAN card is required to open a bank account in India. It helps banks to verify the identity and address of the account holder.
3. Buying or Selling Property: A PAN card is mandatory for buying or selling property in India. It helps to track the transactions and prevent tax evasion.
4. Investing in Mutual Funds or Shares: A PAN card is required for investing in mutual funds or shares in India. It helps to track the investments and prevent money laundering.
5. Applying for Loans or Credit Cards: A PAN card is required for applying for loans or credit cards in India. It helps banks to verify the creditworthiness of an individual or business.
6. Proof of Identity and Address: A PAN card serves as a proof of identity and address in India. It can be used as a valid document for various purposes such as applying for a passport, driving license, voter ID, etc. In summary, a PAN card is an essential document that serves multiple purposes such as tracking financial transactions, preventing tax evasion, verifying identity and address, and many more.
