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Use of PAN Card: Why Do You Need a PAN Card?

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Do you have a PAN card? If you do, you have mostly used it for quite some time. But have you ever wondered about the importance that it holds? How it can be used, and what to do with it? A PAN card is so much more than just a proof of identification. Here you can find out the significance it holds. But before that – here are some basics to brush up on.

Meaning of PAN Card

PAN, or the permanent account number, is a 10-digit alphanumeric identifier assigned to each taxpayer by the Income Tax Department, which is overseen by the Central Board of Direct Taxes. It also acts as Identification. PAN is required for financial activities such as receiving taxable pay or professional fees, selling or purchasing assets in excess of defined limitations, purchasing mutual funds, and more.

The fundamental goal of PAN is to combat tax evasion by using a universal identification key to track financial transactions that may have taxable components. Throughout India, a change of address has no effect on the PAN number.

Who Needs This PAN Card?

  • Anyone with a taxable income in India, including overseas nationals who pay taxes in India.
  • Anyone who conducts a business (whether retail, services or consulting) with total sales, turnover, or gross receipts surpassing Rs 5 lakh in the previous fiscal year is eligible.

So, if you are one among the majority of the Indian population that needs a PAN card, you will ask yourself – ‘How do I get my PAN?’ ‘Can I track my PAN card?,’ ‘Importance of the PAN,’ and much more?

Here, you can find answers to these questions, so keep reading.

What is the Use of Your PAN Card?

  • The PAN Card is required to perform transactions involving the sale or purchase of assets, including any immovable property valued at INR 5,00,000 or more, as well as the sale and purchase of vehicles with more than two wheels.
  • The PAN card aids in the Identification of fraudulent transactions. It also decreases tax avoidance and increases openness in buyer-seller interactions.
  • Furthermore, every transaction with the ITD requires the provision of PAN card information.
  • It is also required for a variety of other financial operations, including the acquisition of institutional financial credits, the purchase of high-end consumer items, foreign travel, the sale of real estate, the trading of securities, and so on.
  • The PAN Card is an important form of picture identification that is accepted by all government and non-government organizations in the country.
  • Since January 1st, 2016, it has become obligatory to produce a PAN card while opening a bank account.
  • For phone service, taxpayers must have a PAN Card.
  • You will also need it to obtain a new gas connection.
  • It is required to make a one-time payment against a bill in excess of INR 25,000 in any hotel or restaurant.
  • A PAN card is required for any cash payment in excess of INR 25,000 made while going to any foreign nation.

Get Your PAN Card Now!

a) Get It Done Online

The government has made it possible for applicants to apply for a PAN through the NSDL’s Income Tax PAN Services Unit. To apply for a PAN online, simply follow these simple steps:

  • Step 1: To apply for a new PAN, go to the NSDL website (https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html).
  • Step 2: Choose the Application type – New PAN for Indian nationals, Foreign PAN for foreign citizens, or Change/Correction in Existing PAN Data.
  • Step 3: Choose your category: individual, associations of people, a group of people, etc.
  • Step 4: Complete the PAN form with all essential information, such as name, date of birth, email address, and mobile number.
  • Step 5: After submitting the form, you will receive an email with instructions for the next step.
  • Step 6: Select “Continue with the PAN Application Form” from the drop-down menu.
  • Step 7: You will be sent to a new page to complete your digital e-KYC.
  • Step 8: Determine whether you require a physical PAN card and provide the final four digits of your Aadhaar number.
  • Step 9: Fill out the rest of the form with your personal information, contact information, and other information.
  • Step 10: Fill up this section of the form with your zip code, AO Type, and other information. These details are also available in the tab below.
  • Step 11: The form’s final section is the document submission and statement.
  • Step 12: To submit the application, enter the first eight numbers of your PAN card. You’ll be able to see your completed form. If no changes are required, click Proceed.
  • Step 13: Select e-KYC to verify with Aadhaar OTP. Select Aadhaar in all fields for Proof of Identity, Address, and Date of Birth and click Proceed to continue.
  • Step 14: You will be taken to the payment section, where you must make a payment via demand draft or net banking/debit/credit card.
  • Step 15: Upon successful payment, a payment receipt will be generated. Click the “Continue” button.
  • Step 16: To proceed with Aadhaar authentication, check the declaration box and click the “Authenticate” button.
  • Step 17: Select “Continue with e-KYC,” and an OTP will be provided to the mobile number associated with Aadhaar.
  • Step 18: Fill out the form and submit it.
  • Step 19: Next, click “Continue with e-Sign,” and then input your 12-digit Aadhaar number. An OTP will be delivered to the Aadhaar-linked cell phone number.
  • Step 20: Enter the OTP and submit the application to receive the Acknowledgement slip in pdf format, with your date of birth as the password in the DDMMYYYY format.

 

  • b) Get It Done Offline

Applicants may also apply for a PAN card via the postal service. They can go to a nearby TIN NSDL/UTIITSL center and complete the following steps:

Step 1: Form 49A can be downloaded and printed.

Step 2: Fill out the form and attach two passport-sized images to it.

Step 3: Pay the charge by demand draught made payable to ‘NSDL – PAN’ and payable in Mumbai/UTIITSL. With the form, include self-attested photocopies of proofs.

Step 4: Mention ‘APPLICATION FOR PAN-N-Acknowledgement Number’ superscripted on the application form’s envelope. The application must be submitted to the following:

Income Tax PAN Services Unit,

NSDL e-Governance Infrastructure Limited,

5th floor, Mantri Sterling, Plot No. 341,

Survey No. 997/8, Model Colony,

Near Deep Bungalow Chowk, Pune

Closing Note

If you have not applied for your PAN card, you should get it done right now. Since you know how useful this PAN card is, you just can’t miss out on pushing the date to get your hands on it.

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