Permanent Account Number (PAN) is a unique identification number assigned to individuals, businesses, and other entities by the Indian Income Tax Department. It is a 10-digit alphanumeric code, and it serves as a primary key to store and retrieve tax-related information of an individual or entity. Here are some important facts about PAN:
Importance: PAN is essential for conducting various financial transactions such as opening a bank account, investing in securities, buying property, and filing income tax returns.
Format: PAN is a 10-character code, with the first five characters being letters, followed by four numbers, and ending with a letter. For example, the format of a PAN card could be “ABCDE1234F.”
PAN cards are issued by the Indian Income Tax Department
Issuance: PAN cards are issued by the Indian Income Tax Department. You can apply for a PAN card either online or by submitting the application form (Form 49A or Form 49AA) at the nearest NSDL or UTIITSL TIN facilitation center.
Usage: PAN is used for various purposes such as payment of taxes, claiming tax refunds, opening a bank account, applying for a credit card, and investing in securities.
Linking: PAN must be linked to Aadhaar card for many financial transactions such as filing income tax returns, opening a bank account, and investing in securities.
Verification: PAN details can be verified online through the official Income Tax Department website.
Correction: In case of any errors in the PAN details, you can apply for correction online or through the nearest PAN center.
Validity: PAN is a lifetime number, and there is no need to renew it.
In summary, PAN is a crucial document that helps in maintaining financial records of individuals and entities, and it is important to obtain and use it for various financial transactions in India.
Here are a few more points about PAN:
Structure: The first three characters of the PAN are alphabetic series running from AAA to ZZZ. The fourth character of PAN represents the type of holder of the card. For example, P for individuals, F for firms, C for companies, etc. The fifth character of the PAN is the first character of the holder’s last name/surname. The next four characters are sequential numbers from 0001 to 9999, and the last character of the PAN is an alphabetic check digit.
Duplicate PAN: Having multiple PANs is illegal and can lead to penalties. In case you have more than one PAN, you can surrender the duplicate PANs to the Income Tax Department.
Importance for tax filing
Importance for tax filing: PAN is necessary for filing income tax returns. If you have taxable income and do not have a PAN. And you need to apply for it before filing your income tax return.
Penalty for non-compliance: If you fail to quote PAN or provide an incorrect PAN for financial transactions. And you may have to pay a penalty.
Online PAN verification: The Income Tax Department has an online PAN verification system that enables individuals. And businesses to verify the validity of PANs held by their clients, customers, vendors, or employees.
Digital PAN: The Income Tax Department introduced a digital PAN in 2021. And which can be downloaded in a PDF format and is equally valid as a physical PAN card.
PAN-Aadhaar linking deadline: The deadline for linking PAN with Aadhaar has been extended several times, but currently. Also it is mandatory to link PAN with Aadhaar by March 31, 2023, failing which PAN may become inoperative.
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What is the use of permanent account number?
The Permanent Account Number (PAN) is a unique identification number assigned by the Indian Income Tax Department to individuals, businesses, and other entities. The use of PAN is primarily related to tax compliance and financial transactions in India. Here are some of the key uses of PAN:
Income Tax Filing: PAN is necessary for filing income tax returns in India. It helps in linking an individual’s tax payments and income to a single account. Also making it easier for the tax authorities to track an individual’s tax liability.
Opening Bank Accounts
Opening Bank Accounts: PAN is mandatory for opening bank accounts, including savings accounts, current accounts, and fixed deposit accounts.
Applying for Credit Cards: PAN is required when applying for credit cards in India. And as it helps in establishing an individual’s creditworthiness.
Investing in Securities: PAN is necessary for investing in securities such as stocks, bonds, mutual funds, and other financial instruments. It helps in tracking an individual’s investment transactions and enables the authorities to calculate taxes on capital gains.
Buying Property: PAN is mandatory for buying and selling immovable property worth more than Rs. 10 lakh in India. It helps in preventing tax evasion and money laundering.
Foreign Exchange Transactions: PAN is mandatory for foreign exchange transactions, including international travel and foreign remittances.
Other Transactions: PAN is also required for various other transactions, such as applying for a loan. Also buying insurance, applying for a passport, and registering a company.
In summary, PAN is a critical document for tax compliance and financial transactions in India. It helps in tracking an individual’s financial transactions. And enables the tax authorities to identify potential tax evasion and money laundering activities.
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How can I find my 10 digit PAN number?
If you have already applied for a Permanent Account Number (PAN). There are several ways to find your 10-digit PAN number. Here are some of the ways:
PAN Card: Your PAN number is mentioned on the front of your PAN card. And which is a laminated card issued by the Income Tax Department. Look for a 10-character code, with the first five characters being letters, followed by four numbers, and ending with a letter.
Income Tax Website: You can visit the Income Tax Department’s website at https://www.incometax.gov.in/. And click on the “Know Your PAN” link under the “Quick Links” section. Enter your full name, date of birth, and registered mobile number or email address. After submitting the details, you will receive an OTP (one-time password) on your registered mobile number or email address. Which you need to enter on the website to verify your identity. Once verified, you will be able to view your PAN number.
NSDL or UTIITSL Website
NSDL or UTIITSL Website: If you have applied for a new PAN or made changes to your existing PAN. You can visit the NSDL or UTIITSL website, depending on where you applied. Click on the “Track Your PAN/TAN Application Status” link and enter your application number or acknowledgement number. After submitting the details, you will be able to view your PAN number.
Customer Care: You can contact the Income Tax Department’s customer care number at 1800-180-1961 and provide your personal details such as name. Date of birth, and registered mobile number or email address. The customer care executive will verify your identity and provide you with your PAN number.
Income Tax Department Office: You can also visit the nearest Income Tax Department office with your identification documents and request for your PAN number.
In summary, you can find your 10-digit PAN number by checking your PAN card. Also using the Income Tax Department’s website, NSDL or UTIITSL website, customer care. Or visiting the nearest Income Tax Department office.
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