PAN card or better known as Permanent Account Number is mainly an identification number provided by the Income tax department of India. The Indians have to obtain this from the Income tax department that is mainly regulated by Central Board of Direct taxes. Few years back the PAN card was used to get a telephone connection and other similar needs. But now it is needed mainly to open a bank account or also for salary purposes.
Similarity with the social security number
In the United States, a social security number is offered to legal residents and citizens. The PAN card in India can be said to be of similar features. Prior to the introduction of the PAN card, there were a number of people in India who avoiding paying Income taxes. This led to a situation of robbery in the country. To tackle such a situation, the government of India came up with an identification number to track such avoidance of taxes.
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Features of the PAN card
· The most important feature of the PAN card is its structure. It comprises of alphanumeric characters where the first 5 digits are alphabets. The next 4 digits are numbers, and again the last one is an alphabet.
· The number on the card will not change if you change your resident address from one part of the country to another. Hence, if you are in India and you have obtained your PAN card once, you do not have to change it again and again.
· The income taxes payers of India are identified by the PAN number itself that is held by the payer.
· The authentication of the PAN card can be determined by its number structure. Hence, a PAN number is invalid if the pattern of the number does not match.
PAN card – a mandatory identification number in India
Recently the government of India has made it mandatory that everyone should have a PAN card. Whether you are an earning candidate or not, but still you should obtain a PAN card. It will be also required in case if you are involved in trading of stocks or in dealings with a property. You definitely require a PAN card again to pay your taxes and also to consult with the tax department. Previously PAN card was only used for financial transactions or issues in India. But now PAN card is very much mandatory for other activities such as an application for a visa.
The most important power that the PAN card holds is that the tax officials can track your tax details. If you are hiding some of your income to save tax, this can be also known by the tax officials using the number on the PAN card.
In case you are an NRI and wish to have a PAN card, you can fill up the form 49A and can submit to the tax authorities. You can also take help from some of the private agents in this case. Whether you are applying for a normal PAN card or for an NRI PAN card, you can easily track it from the website till it does not reach you.
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ReplyDeleteNice post. PAN card has become a very essential component of today’s time. It is required when you join a new job, in opening a new bank account, in having mutual funds etc. and it tracks all our transactions very easily. If you want to Know Your PAN then visit this link.
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