What is PAN Card? Why is PAN card necessary?
The full name of PAN card is Permanent Account Number. This is an identification card which is used for all types of financial transactions. This is a unique card which consists of 10 alphanumerical characters which the Income Tax or Income Tax Department gives us. PAN card is issued in the form of a laminated card under the Indian Income Tax Act, 1961.
Everyone knows why PAN card is necessary in today’s time. It is used everywhere whether it is to open a bank account, pay income tax, make a credit card or make an online wallet account. That is why in today’s post, we will know What is PAN Card and what is the use of PAN card?
Without this card, no work related to online finance can be done.
After Demonetization (Demonetisation) on the advice of Indian Government, Reserve Bank of India has made it mandatory for all account holders to link it with Aadhar card.
I will tell you in simple language why it is necessary and how to make it? By which you will easily understand about it. Along with this, you will understand what are the benefits of this.
So let’s know without delay What is PAN Card and what is its importance in our country.
PAN Card Introduction
PAN card is issued under the supervision of the Central Board of Direct Taxes (CBDT).
PAN card is very useful for us as an identification proof. Through this, the Indian government gets complete information about income tax.
PAN card is useful for all kinds of financial transactions. Through this, it is necessary to pay income tax, to open a new bank account, to receive taxable salary, to buy and sell property.
It works like an identity card but it does not have an address, so it is not used as an address proof. It looks exactly the size of a debit/credit card.
In this, your name, father’s name, date of birth, PAN number are entered. Along with this, there is also a photo and signature in it.
PAN Card Structure
As we have already talked about that PAN card is 10 character long alpha numeric unique character.
Every PAN card number is different and unique from each other. It contains lots of information. Let us understand this with an example.
This number is something like this AAWA1234J
- In this, the first 5 letters are English alphabets, followed by 4 numerical numbers and the last one is an English alphabet.
- The first 5 alphabets can contain any letter between the first 3 alphabets A-Z.
- The 4th alphabets are selected according to the list given below.
- For Company – C
- For any person – P
- Hindi for undivided family (HUF) – H
- For Firm – F
- For Association of persons (AOP) – A
- To denote about Trust – T
- For Individual (BOI) – B
- Local Authority – L
- Artificial Jurisdiction Person – J
- Government – G
- 5th alphabet is the surname or last name of any person, the first letter of the name of any organization or company.
- After this, the 4 numerical digits of 6-9 characters are taken from between 0001 to 9999.
- The last digit is an alphabet which is derived from the trailing 9 characters by applying a formula.
Benefits of PAN Card
Now next we will talk about what are its benefits:
- This card saves you from the problems and disturbances in income tax.
- The card issued by the Indian government is valid everywhere. It is recognized everywhere in every government office and bus train.
- That is why you can give it in any government or private organization as ID proof.
- Apart from full time, you get paid easily by showing it in part time job also.
- If you do a temporary job or part time work somewhere, then you can claim TDS in the last of the year.
- For doing transactions above 50,000.
- With this, in doing transactions of more than 50,000 in the share market.
- This works to pay more than 25,000 amount in a hotel.
Why Pan Card is used?
It works as an identity card for us. When someone goes to the bank to open a bank account, it is mandatory to submit a PAN card there. Without this a bank account cannot be opened.
This gives tax information and the government gets information about tax evasion.
Apart from this, if someone comes to open his account in many banks and he feels that keeping money in different accounts will avoid the eyes of the government, then PAN card plays the most important role in this.
By which the government gets to know how much total property is with him or any person.
Why is PAN card necessary?
Permanent account number is a must for every citizen. There are many such works which are not possible without it.
- It acts as an identity card for us in a way. In this, our name is also the father’s name and photo, due to which it is valid for ID proof.
- Use it to pay income tax. If it is not there then it will not be known what is the correct amount of tax. They record all the transactions done by a person through a unique number. This helps in preventing tax evasion.
- This is even more important for the person doing the job. When any transaction of higher value has to be done, then it is necessary to give the details of PAN card there. Can’t do transaction without it.
- It has been made mandatory for opening new bank accounts. If you want to make an account in any bank of India, then they will definitely ask you for this.
- It works in getting a new connection of the telephone.
- It is needed for buying or selling a property, along with it it is necessary for building a house and buying a flat.
- This also comes in handy for buying a vehicle.
- You will need it to get Debit/Credit card.
How to Apply for PAN card?
There was a time when getting it done was a difficult task. But now it has become very easy. Now any common man, company or any organization can apply for this.
Even foreigners can apply and get it made for themselves.
There are 2 ways to get this made, or you can get it made by applying both online and offline.
Online: To apply online, you have to login to the website and fill Form 49A. For this there are websites from where they can do this work.
Offline: If you want to apply for PAN card, then for this you should go to your nearest center.
There you fill up your form and attach the necessary documents with it and give it. Then after approval you will get a card.
It costs you Rs 93 to make this, but after applying GST, it costs Rs 110. There are many websites online from where you can apply but they also charge extra.
But if you apply and make it yourself, then you will get the same charge as told by paying online. For this, you must have credit / debit or net banking.
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 PAN, you will be given a tracking number from which you can check the status of your card and know by when you will get it.
What are the documents required for PAN card?
If you are applying for yourself or for a relative, then you must know what are the documents required to apply and get it made.
If you do not have these documents then you will not be able to apply. So let’s know what are those documents without which it is not possible to apply.
Identity Proof: First of all, it is necessary to have an identity proof. If you have any one identity card according to the list given below, then you can apply.
2. Voter ID card
3. Aadhar Card UIDAI
4. Ration Card
5. Driving License
6. Photo Identity Card issued by Central or State Government
Address proof: The second document which is required is the address proof. You can use any one of the following documents for address proof.
1. Aadhar Card
3. Voter ID card
4. Driving license
5. Post Office Passbook
6. Property Registration certificate.
Birth certificate: – The third document that is required to apply for it is the birth certificate, it gives information related to our birth.
1. Aadhar Card
2. Elector’s Photo Identity Card
3. Driving license
5. Matriculation Certificate
6. Birth certificate issued by the municipal authority.
Latest Photographs (New Photos): You will also need to submit 2 recently taken photos while applying.
Friends, take a copy of all the documents and keep it in your signature as well. Which is also called self attested. This
It has been made mandatory in every bank by the Government of India. It is necessary for every citizen to have it. It has also been linked with Aadhar card.
Friends, in today’s time it has become very important to have every government document. And without these documents our work cannot be done. Here you have also learned that why PAN card is necessary, what is its use for us.
Along with this, you also learned how to make a PAN card and what is its use so that it is available to everyone and they do not have any problem in getting any kind of work which can be done only by having it.
You have also known what are its benefits.
Through this post, mainly you know What is PAN Card.
I hope you will like this post what is PAN card.
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