10 Reasons Why PAN Card is Important in India

PAN card is used by an individual for unique identification. It is a permanent account number which is a ten digit alphanumeric identity. It is issued by the Department of Income Tax under the direction of the Central Board of Direct Taxes. It also acts as an identity validation at some places. It has become compulsory for all types of financial transactions such as professional fees, purchase or sale of goods. Perhaps, it is also used in taxable deals, buying of mutual funds and more.

Pancard

Objective of Using PAN card:

It is used as a universal identity. It acts as a way to track all the financial transactions and as an identity for all taxable components which can help in tax preventions. Even if you keep on relocating all over India, the PAN number remains unchanged and still is used wherever required.

Who all can apply for PAN card??

  • Taxable earning income in India as well as foreign estates.
  • Person was running a personal business regarding consulting, servicing or retailing who has a sale or gross or turnover exceeding five lakhs in the earlier financial years.

How an individual can apply for PAN card facility!!

  • To get a PAN card facility, one must fill ‘Form 49A’ or ‘Form 49AA’ as per your relevance.
  • You can avail more information at incometaxindia.gov.in.
  • You can also check your pan card status online from here.
  • You will require the photocopies of proof of address and Identity.
  • Payment in such scenarios can be done via demand draft, cheque or cash.
  • You can check various websites for the location of PAN card offices. These offices named National Securities Depository Limited (NSDL) or Income Tax Department are located in every city.
  • You can also apply for the Pan card online. You can look at the websites of National Securities Depository Limited (NSDL) or Income Tax Department.
  • Like if you are applying online for the PAN card you can make the payment via Net Banking or use your credit or debit card.
  • You can also track the status of the PAN card via an online application.

Pancard

PAN card is mandatory nowadays. PAN card i.e. permanent account number is issued by the Income-tax Department to every tax payer. While doing all those financial transactions, PAN card is considered mandatory. Some of the situations where PAN card is important are highlighted below:

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  • While opening a new bank Account

It is important to have a photocopy of PAN card while opening an account in the bank be it private/ public or co-operative or other banks. However, shortly in the financial program- Pradhan Mantri Jan Dhan Yojana (PMJDY) using the PAN card is not compulsory. Advantages of PMJDY are as follows:

  • Applying for debit or credit card

Whenever you apply for the credit or debit card, it is mandatory to submit PAN card as well. Not giving PAN card will end up with the rejection of your application. Once your application gets rejected, it can lead to trouble in getting the loan on that credit card, resulting in poor credit score and impacting in future on such services.

  • Selling or purchasing of a Vehicle

While buying a vehicle costing more than five lakhs makes it mandatory for one to submit his/ her PAN card. So you must plan wisely while proceeding.

  • Insurance payment

CBDT has made it important to submit PAN card details for whosoever making transaction exceeding 50,000 in a year to any insurance company.

  • Sell or buy a property

Again while submitting papers or documents for the property exceeding the amount of 5 lakhs needs the submission of PAN card. Buying or selling is strictly prohibited if you don’t own a PAN card. Even if a property is owned by two people at the same time, then PAN card of both is required.

Conclusion

Thus, we all know that PAN CARD holds many advantages and you can enjoy all these benefits, only if you have a PAN CARD. Get it made now by applying it online.

If you still have doubts, you can comment in the comments section below.