Are you planning to buy jewelry of amount exceeding 5 lakhs? If not jewelry then a car or a property? Then there is one important document that you will require and that is PAN card. PAN card or permanent account number, is a unique 10-digit alphanumeric identity allotted to each taxpayer by the Income Tax Department of India under the supervision of the Central Board of Direct Taxes. The authorities that accept the Pan online application process are The UTI Investors Services Ltd (UTIISL) and National Securities Depository Limited (NSDL). It also serves as an identity proof. The first PAN card was issued in the year 1964.
PAN card is also issued to foreign nationals like investors. PAN is mandatory for financial transactions such as sale or purchase of assets above specified limits, buy mutual funds and many more. PAN card is one of the important documents. The main objective of bringing PAN card in use by the government of India is to prevent tax evasion. It is key to track financial transactions that might have a taxable component. Having a PAN card is as mandatory as having an Aadhar. PAN card helps the government to identify the people who avoid taxes and make abnormal or unnecessary profits. The PAN card is not affected by the change of address throughout India. Anyone who has taxable Income in India and a foreign national whose taxes are deducted in India is required to apply for a PAN card if they do not have it already or if they have it, they need to show it when needed. If the NRI wants to conduct any transaction in India or wants to invest in the stocks of Indian companies then all these transactions are routed through PAN card.
For the people who run a business or any sort, if their turnover exceeds rupees 5 lakhs, they are required to apply for a PAN card. If any individual wishes to open a bank account then it is important for the individual to declare his/her PAN. For receiving taxable salary or professional fees, or while making certain high-value transactions, while buying a property or a car worth over a certain limit, buying or selling shares or mutual funds, for applying for a visa/passport, making payment of income tax or filing tax return, and while applying for a bank loan.
All these activities are considered as very common activities and a normal person and a citizen of a country perform these activities regularly. In order to complete these transactions successfully the person shall have a PAN card. It is mandatory for each and every person in the country. From a manufacturer or a producer to a businessman. Even if you want to submit an ITR, you need to have a PAN card. Companies and trust are also required to have a PAN card. If you wish to fill the Application form offline for PAN card then they are available at PAN Facilitation centers, located in cities and towns, wherever Income Tax offices are located. Or if you wish to fill online then ‘Form 49A’ is also available online in the websites of the Income Tax Department and NSDL.
One needs copies of proof of Identity and address. Payment can be made using any mode like cash, cheque or demand draft. You can also apply online through websites of the I-T Department or NSDL or national securities depository limited. If you are applying online, the processing fee can be paid via net banking, credit card or debit card. You can also track the status of your application online.