PAN Card: Essential for Financial Transactions
The Permanent Account Number (PAN) card has become a cornerstone of interactions with the Income Tax Department, playing a crucial role in various financial activities. It is now an indispensable requirement for numerous transactions.
Importance of PAN Card:
Bank Accounts: Opening a bank account mandates a PAN card, solidifying its significance in financial record-keeping.Property Transactions: Dealing with immovable properties necessitates a PAN card, ensuring transparency and proper documentation in real estate dealings.Foreign Travel: For those venturing abroad, a PAN card is a necessary document, often required for visa applications and other travel-related procedures.Securities Transactions: Investing in securities demands a PAN card, linking financial investments to an individual's identity.Identification Proof: Beyond its financial applications, the PAN card serves as a valid identification proof, simplifying various verification processes.
Managing Multiple PAN Cards
Instances of individuals possessing multiple PAN cards have emerged, raising concerns about potential misuse. It is essential to address this situation promptly and ensure compliance with regulations.
Procedure for Surrender:
If an individual possesses multiple PAN cards, retaining only one is legally permissible. The other cards must be surrendered by sending a letter to the jurisdictional Assessing Officer. This proactive step helps avoid penalties and maintains a clean financial record. “It is illegal to have more than one PAN card and the penalty for this is Rs 10000.” If different PAN cards were used mistakenly, the individual should immediately surrender the extra cards and inform the concerned institution about their correct PAN.
PAN Card and Income Tax Returns:
Obtaining a PAN card does not automatically obligate an individual to file income tax returns. Possessing a PAN card doesn't necessitate filing a return unless one's income reaches the taxable threshold. This distinction clarifies the purpose of the PAN card as an identifier rather than solely a tax filing tool. An individual may acquire a PAN card even if they are not an income tax payer, highlighting its broader utility in financial identification.
Written by admin
in Guides •
Feb 2, 2008
Tagged Real Estate , Bank Account , PAN Card , Property Transactions , Income Tax , Financial Transactions , Foreign Travel , Securities , Identification Proof , Income Tax Department , Assessing Officer , Taxable Income
Comments 15
A
amit • Oct 18, 2009
can a student get a pan card who have no
any source of incom ? what is mean to avail
a pan card....is it mean that i have to pay income tax ??
S
sandhya • Jun 13, 2010
I want to know what are uses of a PAN card?........thank u when reply me
RS
Ravinder Singh • Apr 9, 2010
i want know how to creat pan card.
T
tenzin • Aug 31, 2010
actually i am tibetan but i was born in india can i get pan card? what are uses of pancard?
can i get it from chandigarh as i am studying there.
R
ramesh • May 27, 2011
useing perpouse e mail ki send pizzzzzzzzzz and how to uses
MR
m. ramesh • Jun 25, 2011
In my pan card my name is diffient and also i change the name and address also.
P
pushpendra • Aug 1, 2011
yes......a student can get the pan card .with zero income.
What is PAN?
A Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department of India. Each set of numbers is unique to the individual, HUF, company, etc. (We will take a closer look at those numbers in a moment.).
PAN is a permanent number, is unaffected by a change of address, even between states and is not transferable. It is illegal to own more than one PAN.
The PAN"s primary purpose is to bring a universal identification key factor that links and tracks various documents and information regarding taxes and financial transactions, such as loans, investments, buying and selling real estate and other business activities of taxpayers. By tracking the above it indirectly prevents tax evasion through non-intrusive means.
You can consider this number to be similar to the Social Security Number issued in the United States to USA citizens and other legal residents.
Myths Regarding PAN
Many people believe that PAN cards are used for tax purposes only. That is a myth. PAN numbers are required for the purpose of income tax but not the actual card itself. Photocopies of PAN cards are required as prove of identity in financial transactions such as opening a bank account, purchase and sale of property and motor vehicles, home telephone lines and investments, such as demat accounts and mutual funds, just to name a few.
Applying for a PAN Card
Anyone can apply for a PAN card, whether they are working or not. There is no restriction on age, region or nationality. You can submit an application for an underage minor and even on behalf of a newborn. Applications must be signed by a legal parent or guardian.
New PAN:
-If the applicant has never applied for a PAN, does not have a PAN allotted to them, they can visit the Income Tax Department (ITD) website. The first step is to determine if a PAN has been allotted to them or not.
-If a PAN has not been allotted to them they can apply at the following sites. You can apply and track the progress of your application through both of these websites:
o UTI PAN Card Application
o NSDL Application for PAN
-To apply in person, use the following lists to find the nearest TIN-PAN Centers, NSDL TIN Facilitation Centers or UTI PAN Application Centers (for UTI, see list at bottom of page).
To apply for a new PAN card you need to submit at least two proofs of Identify and residence from the following sources:
-Matriculation Certificate
-Recognized Educational Institute Degree
-Credit Card
-Bank Statement
-Ration Card
-Driving License
-Voter"s Identity Card
-Passport
(Note: The above list is for individuals and HUF.)
Reprint of PAN Card:
-This application should be used when a PAN number has been allotted to you and you need a PAN card. A new PAN card will be issued to you with the same PAN number. Go to the NSDL website to apply for a reprint. You can go to the above mentioned NSDL and UTI sites to verify or search your PAN number.
Structure of the PAN
The structure of the new series of PAN numbers is based using Phonetic Soundex code algorithm to ensure that each number is unique. The following list is “constant permanent parameters" that assist in the creation of phonetic PAN (PPAN) number:
i. Full name of the taxpayer
ii. Date of Birth/Date of Incorporation
iii. Status
iv. Gender in case of individuals
v. Father"s name in case of individual (including in the cases of married ladies).
The Date of Issue (DOI) of the PAN card can be found on the right hand side of the photo on your PAN card.
The 10 Digit Alphanumerical Sequence
Let"s take a look at the breakdown of the 10 digit alphanumerical sequence:
1. The first five fields are called the core fields and are alphabetical in nature.
2. The first three letters of the core field are an alphabetical series running from AAA to ZZZ.
3. The forth character of the PAN must be one of the following, depending on the type of assesse:
C – Company
P – Person
H — HUF (Hindu Undivided Family)
F — Firm
A — Association of Persons (AOP)
T — AOP (Trust)
B — Body of Individuals (BOI)
L — Local Authority
J — Artificial Juridical Person
G — Government
(Example – Company = AAACA; Artificial Juridical Person = AAAJA; HUF = AAAHA; etc.)
4. The fifth character of the PAN is the first character of the following:
a) Your surname in the case of “P" or;
b) For all others you would use the first letter of the name of the Entity, Trust, Society, Organization, HUF, etc.
(Example - Lisa Chanamolu [Personal] = AAAPC4444A; Lisa Chanamolu [HUF] = AAAHL4444A; General Firm = AAAFG4444A; etc.)
5. The next four numbers are sequential numbers running from 0001 to 9999.
6. The last digit is an alphabetic check digit.
The New Phonetic PAN (PPAN)
The new Phonetic PAN (PPAN) helps to prevent the allotment of more than one PAN to assesses with the same or similar names. If a matching PPAN is detected, a warning is given to the user and a duplicate PPAN report is generated. In these cases, a new PAN can only be allotted if the Assessing Officer chooses to override the duplicate PPAN detection. Under this new system a unique PAN can be allotted to 17 crore taxpayers.
In Conclusion
It is easy to see the importance of your PAN card and why you need the physical card as well as the allotted PAN number. If you do not have a PAN card, take the small amount of time need to apply for one today.
A
ari • Aug 6, 2011
i,m a student.
what is actually permanent account number?
is it mandatory for every indian citizen to have a PAN?
how can i get one?
what are its uses?
S
Suganya • Dec 28, 2011
I had completed my Under Graduate degree now I'm doing my higher studies..shall i apply for PAN Card? What is the use of PAN Card to me?....
A
Anita • Jan 13, 2012
Hi my name is anita and i have a pan card and i ask a question on which amt deducted tax.
A
Ajit • Jan 29, 2012
Oh why are you not replying sir.
I have been waiting for your response please tell me about the most use of pan card and what is the importance of pan card for student
V
vasu • Mar 7, 2012
tell me more uses of pan card
S
santosh • Aug 26, 2012
please share use of PAN card
BP
Basanagouda Patil • Aug 28, 2012
i have a pan card and i ask a question on which amt deducted tax. If our private national banks asked PAN is there deduction from that bank account
S
swaroop • Aug 29, 2012
@amit Sandya & Tenzin - any student can get a Pan Card and its mandatory !!