Pan Card: Your Pocket Sized Passport To Financial Freedom
What is PAN Card ?
The Income Tax Department of India issues a unique ten-digit identifier known as a PAN card, or Permanent Account Number. It is essential for conducting financial transactions, complying with income tax regulations, and serving as a means of confirming an individual's identification. The PAN card contains vital information such as the individual's name, birthdate, photo, and, most importantly, unique PAN card number.
Why PAN ?
Identity: The primary purpose of a PAN card is to provide identification. It authenticates people by confirming their entire name, ID, photo, and special PAN number.
Income Tax Return Filing: In India, a PAN card is required in order to file income tax returns. It guarantees tax compliance and aids in the government's tracking of financial transactions.
Employment: During the recruiting process, businesses frequently seek a PAN card for verification purposes. It assists firms in keeping up-to-date personnel records and adhering to tax laws.
Financial operations: A PAN card is needed for a number of financial operations, including opening a bank account, transacting large sums of money, purchasing or selling real estate, and investing in mutual funds. It assists in stopping tax evasion and keeping track of financial activity.
GST Registration: In order to register a business under the Goods and Services Tax (GST) system in India, a PAN card is necessary. It makes business identification easier and promotes efficient tax administration.
Government Subsidies: In order to get government benefits, schemes, and subsidies, a PAN card is required. It guarantees accurate identification and guards against duplicate or improper usage of subsidies.
Banking and Investing: A PAN card is required to create bank accounts, submit loan applications, and make financial transactions like purchasing stocks, bonds, or other assets. Financial institutions can keep an eye on transactions and adhere to anti-money laundering laws thanks to it.
Types of PAN Card
Individuals who reside in India (Category Code: P): The most typical Pan Card given to Indian nationals living in India is this one. The application is simple and needs proof of address (such as a utility bill) and identification (such as an Aadhaar card).
Foreigners (Category Code: F): Applicants must be foreigners who owe taxes in India. Passports, visas, and evidence of Indian residency are among the documents.
Indians who are not residents (NRIs) (Category Code: N): A Pan Card is available to NRIs who have financial ties to India. The application procedure is carried out through Indian consulates or embassies overseas. Certain documentation may be needed in different places.
Hindu Undivided Family (HUF) (Category Code: H): A joint family entity for taxation purposes, a HUF can obtain a Pan Card. Documents include proof of the HUF's existence, like a deed of partition or a copy of a previously filed income tax return.
Companies (Category Code: C): Companies registered in India need a Pan Card for financial transactions. Documents required include Certificate of Incorporation, Memorandum of Association (MoA), and Articles of Association (AoA).
Partnerships and Firms (Category Code: F): Registered partnerships and firms in India require a Pan Card for tax purposes. Documents include a partnership deed and proof of the firm's address.
Trusts (Category Code: T): In order to conduct financial activities, registered trusts in India may apply for a Pan Card. The trust deed and registration certificate are among the necessary documents.
Society (Category Code: S): In India, societies that are registered can apply for a Pan Card. Proof of address and the certificate of society registration are among the documents needed.
How to Apply for PAN Card ?
Applying through NSDL website
Step 1: Select the PAN card application form
Select the "New PAN Indian Citizen (Form 49A)" PAN card application form from the NSDL website. This particular form is intended only for Indian nationals requesting PAN cards.
Step 2: Fill in the application form
Fill out the application form carefully, providing all the requested information. Before completing the form, we advise you to read the comprehensive instructions on the NSDL website. These instructions will walk you through the procedure and guarantee that the information you provide is accurate.
Step 3: Pay the application fee
Depending on the PAN card dispatch option you select, there are different application fees. Demand drafts, credit/debit cards, and online banking are the available payment methods. You can monitor the status of your application by using the acknowledgment you will receive following a successful payment. Your registered email ID will also receive the acknowledgment.
Step 4: Send the required documents for verification
The necessary paperwork must be sent to the NSDL office in Pune after you have finished the online application and made the payment. Your PAN card will be provided within 15 days of the documents being successfully verified by NSDL.
Applying through UTIITSL website
Step 1: Fill the PAN card application form
Complete the PAN card application form on the UTIITSL website by providing the required information. Make sure the information is accurate and comprehensive when supplying it.
Step 2: Pay the application fee
Use the online payment gateway that the website provides to pay for the PAN card application. An acknowledgment will appear on the page and be sent to your email address as soon as the payment is successful.
Step 3: Send the documents for verification
Once the online application form has been completed, you have 15 days to courier the necessary documents to the UTIITSL office. Following satisfactory verification of the papers, your PAN card will be issued within 15 days.
Aadhaar PAN Seeding
The process of linking your 12 digit Aadhaar Card to your 10 digit PAN Card is called Aadhar PAN seeding. To control and prevent tax evasion, the Income Tax department has enforced the linkage of PAN and Aadhaar.
Why is it needed ?
- When a person's PAN card is not linked to an Aadhar card, it becomes invalid.
- Linking your PAN and Aadhaar is necessary while submitting your income tax return (ITR). If PAN and Aadhaar have no link, the IT department has the right to refuse the ITR.
- To access government services, including opening a bank account, applying for a passport, and receiving subsidies, PAN and Aadhaar cards must be submitted. Because of this, obtaining government services is challenging if Aadhaar and PAN cards are not linked.
- Since the Aadhaar card number must be mentioned while applying for a new PAN card, it may be challenging to obtain a new PAN card if the previous one is lost or damaged when the PAN and Aadhaar are not linked.
