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PAN- Permanent Account Number

PAN is a 10-digit unique identification alphanumeric number (containing both alphabets and numbers) assigned to Indians, mostly to those who pay tax.

Through this method, all tax-related information for a person is recorded against a single PAN number which acts as the primary key for storage of information. This is shared across the country and hence no two people on tax paying entities can have the same PAN. Your PAN Card is valid for lifetime because it is unaffected by any change in address.

ELIGIBILTY:

PAN card can be issued to an individual, NRI (Non-Resident Indians), companies or anyone who is paying tax in India.

 Uses and Benefits of PAN Card:

Uses of PAN in Financial Transactions

  • PAN needs to be quoted while paying direct taxes.
  • Taxpayers need to input their PAN when paying income tax.
  • While registering a business, PAN information needs to be furnished.
  • A lot of financial transactions require PAN information. Some of these transactions are:
    • Sale or purchase of property (immovable) which is valued at Rs.5 lakh or above
    • Sale or purchase of a vehicle except a two-wheeler
    • Payments made towards hotels and restaurants and which are above Rs.25,000
    • Payments made in connection with travel requirements to other countries. The amount in this case if it exceeds Rs.25,000, then you need to quote your PAN
    • Payments of more than Rs.50,000 towards bank deposits
    • Purchase of bonds worth Rs.50,000 or more
    • Purchase of shares worth Rs.50,000 or more
    • Purchase of insurance policy worth Rs.50,000 or more
    • Purchase of mutual fund schemes
    • Payments made for more than Rs.5 lakh towards purchase of jewellery and bullion
    • To remit money out of India
    • Transfer of funds from NRE to NRO account

Uses of PAN in Other Cases:

  • Since PAN Card contains information such as Name, Age and photograph, it can be used throughout the country as a valid identity proof.
  • PAN is the best possible way to keep track of your tax payment. Otherwise, you might be required to pay it multiples times since your tax payment cannot be verified.
  • Since PAN is unique for every entity, its misuse is almost impossible for purposes of tax evasion or other devious means.
  • PAN Card can be used to avail utility connections such as electricity, telephone, LPG, and internet.

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