A PAN Card is govt issued identity card to a person in India. PAN cards have 10-digit numbers and the card is issued with the authorization of the Income Tax Dept of India. A PAN card is an important document for banking transactions. On the PAN card, the govt has written the name of the person, DOB of the person photo of the person, and name of the father/spouse. Indian citizens can use the PAN card as proof of DOB and identity.
Why a PAN Card?
- The govt of India has made it compulsory to submit the details of PAN cards for tasks like buying a car, buying a home or any property, stock market investment, and dealing with foreign currency.
- The govt tracks the financial transactions of a person through the PAN Card. All the bank accounts of a person are linked with a PAN card whether they are in multiple banks or post offices.
- The govt tracks money related to a person with the help of a PAN Card and makes it compulsory to pay taxes.
Who Can Apply for a PAN Card?
- The people of India can apply for a PAN Card.
- The NRI- Non-Resident Indians can apply for a PAN Card.
- The OCI -Overseas Citizen of India can apply for a PAN Card.
- The PIOs -Persons of Indian Origin can apply for PAN Cards.
- The foreigners who come under the purview of the Income Tax can apply for PAN cards.
- Firms, companies, governments, and minors can apply for a PAN card.
The Uses of PAN Cards are Given Below
PAN Card is a very important document in India. You can understand the importance of a PAN Card with the below list of major uses of a PAN Card.
IT Returns Filing: The person whose income surpasses a certain boundary is required to pay the income tax. The process to pay the income tax is followed by filing the IT Returns. While filling out the form for the IT Return, a PAN card is the required document.
Opening a bank account: No bank will open a bank account whether saving or current bank account without the PAN Card. While filling out the form for the Bank account, you are required to provide the PAN Card.
Buying or selling a motor vehicle: The transactions with the amount of more than Rs 5 Lakh need to be operated with the PAN Card. If you sell a vehicle worth more than Rs 5 Lakh, submit the PAN card details.
Applying for a credit or debit card: The bank will ask the PAN Card details of the person who is applying for the Credit card or Debit Card.
Purchase of Jewelry: If a person buys jewelry of an amount more than Rs 5 lakh, he requires a PAN card to perform the transaction.
Making investments: If a person is going to buy mutual funds, bonds, equities, or debentures. All of these transactions with the amount of more than Rs 50000 needed the details of PAN Card.
Proof of Identity: The person can submit the PAN Card as DOB proof and also identity proof wherever required. For example, if you are applying for a passport, voter ID, or driving Lisence, you can submit a PAN card for the Age/DOB proof.
Foreign Exchange: People who need foreign currency like for the purpose of traveling abroad, require a PAN card handling the foreign currency. The money exchange bureau/ bank or other institution will ask for the PAN card details for such transactions.
Property: The person who is interested in purchasing selling or renting property needs to disclose the PAN card details. The PAN card details of the buyer and seller are required for the transaction.
Loans: The person who is looking for a house loan, car loan, education loan, or other loan are needed to show PAN card details. The banks or other lending organizations will ask for a photocopy of the PAN card.
Fixed Deposits: The people who want to invest the money using the FD scheme of a bank and the amount of FD is more than RS 50000, the PAN Card is required. The bank will deduct the TDS in case the interest amount is more on FD.
Cash Deposits: The person who wants to deposit an amount more than Rs 50000 in the bank account, will be asked to submit the PAN card document. This is the guideline from RBI to avoid money laundering.
Telephone Connections: Now, the process of having a new telephone connection or a new mobile phone connection needs the details of the PAN card of a person.
Insurance Payments: The transactions related to the insurance of a person have an amount more than RS 50000, the PAN card will be required.
PAN Card Eligibility
What is required to have the PAN Card or you can say, why is required to have a PAN Card, Check below.
- The person who comes under the income tax slab should apply for a PAN card and start paying the income tax.
- A person who is in a business with a year turnover of more than Rs 5 lakh needs to pay income tax, so apply for a PAN Card.
- The person with the business of import and export is required to pay duty charges and these transactions need to have a PAN Card.
- Organizations that are trusts, charitable institutions, and similar need to have PAN cards.
- All the entities who are eligible for the income tax should apply for a PAN Card.
How to Apply for a PAN Card?
- The willing people can apply for a PAN card online using the websites: Protean e-Gov Technologies Limited (formerly NSDL) or UTIITSL.
- The application form submission for the PAN card can also be done offline. You can visit the nearest office concerning the PAN services and fill out the offline application form there.
- The people can apply for the correction in PAN card or change in PAN card.
- You can also request for a duplicate PAN card or reprint service of the PAN card.
- The people are required to fill out Form 49A to apply for a new PAN Card.
- The people who are foreigners will fill out Form 49AA.
- Then submit these forms online or offline as per your requirements.
- The govt will provide the acknowledgment number for submitting the request related to the PAN Card.
- You can use the acknowledgment number to track the application of a PAN Card.
- The current processing time for PAN Card requests is 2 weeks or 14 days.
What is the Validity of a PAN Card?
The govt issues the PAN Card with the lifetime validity. One person has to apply for a PAN card only once.
Can a Person have more than one PAN?
No, a person can not have two PAN cards in India. It is a crime and will lead to a penalty of Rs 10000 for you. Keep only one PAN Card. In case, if you applied more than once for the PAN Card, then inform the authority about it.
What Happens if you don’t have a PAN Card?
If a person comes under the income tax paying list and willing he is not to pay the tax and probably does not have a PAN card, below will be the circumstances of the person.
- The income tax dept has the right to apply a 30% tax on all of the earnings of a person.
- The flat 30% income tax applies to a person, company, firms, and foreign nationals.
- The person can not buy any vehicle/ property with the amount of more than RS 10 Lakh.
- You will not be allowed to open a bank account or do other activities written above in this article.
- The business organization will not be allowed to perform big transactions.
Documents Required to Apply for a PAN Card
The PAN application form names are 49A and 49AA. The govt has directed the individuals to submit the PAN Card application form along with the list of other documents, the list is given below.
For Individual Applicant
- Voter ID
- Aadhaar
- Driving License
- Utility bill
- Water bill
- Bank account statement
- Statement of your credit card
- Passport
- Domicile certificate
- Certificate of marriage
- Matriculation certificate
Benefits of Government Through PAN Card
So far we have studied various benefits of a PAN Card for a person, and why is required to have a PAN card, now we will show the benefits of govt of India through the PAN Card.
Tracking Financial Transactions: The Income Tax dept tracks all the transactions of a person with a PAN number. This tracking will help the income tax dept to calculate taxes for a person or for a company. This has reduced tax evasion.
Determining Tax Revenue: The Income Tax dept submits the yearly report of tax revenue to the govt of India. The income from the tax is used in various govt works like road buildup, etc. The calculation of tax revenue is possible with the help of a PAN card.
Fixing Taxation Rates: The income of a person decides the income tax rate for that person. The PAN card is used to show all of the income related to one person. And a person can easily be put under the income tax slab.
At a Glance
We have discussed through knowledge of PAN cards, why is important to have a PAN card, what the process is to apply for a PAN card, and is government benefits of the PAN Card, all of these details are covered above. Hope, you get the details on your PAN Card. Still there is any question related to PAN card, you can comment below.
FAQ’s
Q How to find an IT PAN Service Center or TIN Facilitation Center?
Ans- The person who wants to apply for the PAN Card Offline, should visit the nearest UTI/UTIISL or NSDL center or income tax office.
Q Can an application for PAN be made through the Internet?
Ans- Yes, the govt of India has facilitated the online service for the PAN Card application form, you can submit the online PAN card application on the UTIISL or NSDL websites.
Q What documents will serve as proof of Identity and Address for the PAN Card?
- Certificate of Registration
- Partnership Deed
- Copy of Trust deed
- Any document stemming from any Central /State Govt Dept proving the Identity and Address of the person