What is PAN Card? Why is a PAN card necessary? Everyone understands why a PAN card is required in today’s world. It is used to open a bank account, pay income taxes, create a credit card, or create an online wallet account. As a result, in today’s post, we will learn what a PAN Card is and its purpose.
There can be no online finance work done without this card.
Following Demonetization (Demonetisation), on the advice of the Indian government, the Reserve Bank of India made it mandatory for all account holders to link their accounts to their Aadhar cards.
I’ll explain why it’s necessary and how to make it in simple terms. This will help you understand it better. Along with this, you will learn about the advantages of this.
So let us know as soon as possible.
PAN Card Introduction
The Central Board of Direct Taxes supervises the issuance of PAN cards (CBDT).
As identification proof, the PAN card is extremely useful to us. The Indian government receives complete income tax information as a result of this.
PAN cards can be used for a variety of financial transactions. This is required to pay income tax, open a new bank account, receive a taxable salary, and buy and sell the property.
It functions similarly to an identity card, but because it lacks an address, it cannot be used as address proof. It appears to be the size of a debit/credit card.
Your name, father’s name, date of birth, and PAN number are all entered here. Along with this, there is a photo and a signature.
PAN Card Structure
As previously stated, a PAN card is a 10-character long alphanumeric unique character.
Every PAN card number is distinct and one-of-a-kind. It is densely packed with information. Let us illustrate this with an example.
This number looks like this: AAWA1234J
- The first five letters are English alphabets, followed by four numerical numbers, and the final letter is an English alphabet.
- The first five alphabets can contain any letter from the first three alphabets (A-Z).
- The fourth alphabet is chosen from the following list.
- C is for Company.
- For any individual – P
- Hindi for an undivided family (HUF) –
- H For a Company – F
- AOP stands for Association of Persons.
- To symbolize Trust – T
- For Individual (BOI) – B
- Local Government – L
- Artificial Jurisdiction Individual – J
- Government – G
- The fifth alphabet is a person’s surname or last name, as well as the first letter of the name of any organization or company.
- Following that, four numerical digits of six to nine characters are chosen from 0001 to 9999.
- The final digit is an alphabet derived from the preceding 9 characters using a formula.
Benefits of PAN Card
Following that, we will discuss its advantages:
- This card protects you from income tax problems and disruptions.
- As a result, you can use it as identification in any government or private organization.
- Aside from full-time employment, you can easily earn money by working part-time.
- If you operate a temporary or part-time job somewhere, you can claim TDS at the end of the year.
- For transactions exceeding $50,000.
- With this, in doing more than 50,000 transactions in the stock market.
- This works to pay for more than 25,000 in a hotel.
Why Pan Card is used?
It serves as our identity card. When someone goes to the bank to open a bank account, they must present a PAN card. A bank account cannot be opened without this.
This provides tax information, and the government learns about tax evasion.
Apart from that, if someone comes to open accounts in multiple banks because he believes that keeping money in different accounts will keep it out of the eyes of the government, the PAN card is crucial.
By which the government learns how much total property he or she possesses.
Why is a PAN card necessary?
Every citizen must have a permanent account number. Many such works would be impossible to complete without it.
- In some ways, it serves as an identity card for us. Because our name is also the father’s name and photo, it is acceptable for ID proof.
- Use it to pay your income taxes. If it is not present, it will be impossible to determine the correct amount of tax. They track all of a person’s transactions using a unique number. This aids in the prevention of tax evasion.
- This is especially important for the person performing the task. When conducting a higher-value transaction, It is required for the transaction to take place.
- It is now required when opening new bank accounts. If you want to open an account with any bank in India, they will almost certainly ask for this.
- It is effective in establishing a new telephone connection.
- It is required when buying or selling a property, as well as when building a house or purchasing a flat.
- This is also useful when purchasing a vehicle.
- You will need it to obtain a debit or credit card.
Why is Pan Card Necessary?
It helps in the identification of taxpayers in India and is mandatory for financial transactions such as opening a bank account, filing income tax returns, etc.
Banks and other financial institutions also request customers to quote PAN for any transaction above a certain limit. Further, credit card companies also request customers to furnish their PAN while applying for a credit card or during any transaction that they deem fit.
How to Apply for a PAN card?
However, it is now very simple. Any ordinary person, company, or organization can now apply for this.
Foreigners can also apply and have it made for them.
There are two ways to get this made, or you can apply both online and offline.
Online: To apply online, go to the website and fill out Form 49A. There are websites where they can complete this work.
Offline: If you want to apply for a P card, you should go to your local center.
There, you fill out your form, attach the necessary documents, and hand it over.
It costs Rs 93 to make this, but after tax, it costs Rs 110. There are numerous websites where you can apply online, but they all charge a fee.
However, if you apply and make it yourself, you will be charged the same amount as if you paid online. You must have credit/debit or net banking to do this.
But if you go to the PAN center and get a card made for yourself. Then you have to pay money there in the form of cash.
Along with this, after applying for PAN, you will be given a tracking number. You can check the status of your card and know by when you will get it.
Is Pan Card Necessary for a Student?
A PAN card is necessary for a student if the student wants to avail of any tax benefits or exemptions. The Permanent Account Number (PAN) is a ten-digit alphanumeric identification number issued by the Income Tax Department in India. It serves as proof of identity and is mandatory for filing income tax returns.
What are the documents required for a PAN card?
If you are applying for yourself or a relative, you must be aware of the documents required to apply and have it processed.
You will be unable to apply if you do not have these documents. So, what are the documents that are required in order to apply?
Identity Proof: First and foremost, identity proof is required. You may apply if you possess any of the following identification cards.
1. Identification document
2. Voter identification card
3. UIDAI Aadhar Card
4. The Ration Card
5. Driver’s License
6. Photo ID card issued by the federal or state governments
Address proof: The address proof is the second required document. You can use any of the following documents to prove your address.
1. Aadhar Card
2. Passport
3. Voter identification card
4. Driver’s license
5. Passbook from the Post Office
6. Certificate of Registration of Real Estate.
Birth certificate: The third document required to apply for it is the birth certificate, which contains information about our birth.
1. The Aadhar Card
2. Photo ID card for voters
3. Driver’s license
4. Four. passport
5. Certificate of Matriculation
6. A birth certificate issued by the municipal government.
Latest Photographs (New Photos): When applying, you must also submit two recent photographs.
Friends, make a copy of all documents and include it in your signature.
The Government of India has made it mandatory in all banks.
In Short
Friends, it is critical to have every government document in today’s world.
You are also aware of its advantages.
This post will primarily teach you what a P-C is.
I hope you enjoyed this post on what is a P C.
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