PAN / TAN CARD
Permanent Account Number or PAN is a means of identifying various taxpayers in the country. PAN is a 10-digit unique identification alphanumeric number (containing both alphabets and numbers) assigned to Indians, mostly to those who pay tax .
A PAN is a ten-character alphanumeric identifier, issued in the form of a laminated “PAN card”, by the Indian Income Tax Department, to any “person” who applies for it or to whom the department allots the number without an application.
PAN Card is issued to individuals, companies, NRI or anyone who pay taxes in India.
There are 3 types of applications:
1) Application for allotment of PAN (Form 49 A)
This application should be used when the applicant has never applied for a PAN or does not have PAN allotted to him.
2) ‘Request for New PAN Card or/and Changes or Correction in PAN data’
This application should be used when PAN has been allotted already to applicant but a new PAN card is required or when data associated with the PAN (e.g. name of applicant / date of birth / address) is required to be updated in the records of Income Tax Department.
3) Application for allotment of PAN (Form 49AA) – applicable for foreign citizens
This form should be used when the applicant has never applied for a PAN or does not have PAN allotted to him. An applicant can visit Income Tax Department (ITD) website to find whether a PAN has been allotted to him or not.
A PAN card is a very crucial document for every Indian. Nowadays, it is not only used for tracking taxpayers but also some of the most important day to day transactions. It is also needed on every investment platform. Hence, it is imperative to know where and how PAN is used.
WHY PAN CARD IS USED?
Identity Proof
A PAN card is widely accepted as a valid identification proof. It is a trusted identification document for all financial institutions and other organizations.
All individuals who are eligible to pay income tax should file their IT returns. For filing IT returns, one should have the PAN card. It is a compulsory document for filing IT returns.
IT Return filing
Opening a Bank Account
All the co-operative, public and private banks have made it mandatory for an individual to have a permanent account number (PAN) in order to open a savings or a current account.
One of the best benefits of PAN card is that it is accepted in formalities involved during buying or selling immovable assets. A PAN card is mandatory for a transaction valued Rs. 10 lakhs or more.
Purchase & Sale of Property
To claim Income Tax Refund
Many times, a taxpayer needs to pay more than the actual tax amount. To get the refund, the individual needs to link his/her PAN card to the bank account.
In order to start a business or a company, it is mandatory to have a PAN card in the name of the organization.
For Startups
Tax Deduction
A PAN card is very important for taxation. If an individual who is receiving Rs. 10,000 in the form of interest from either a savings account or an FD and has not linked his PAN card with the bank account, then the bank will debit 20% of TDS instead of 10%.
A PAN card is essential while requesting for a pay order, bank cheques and drafts. If an individual is transacting more than Rs. 50,000 then he/she will need the PAN card to complete the transaction.
For Banker’s Cheque & Pay Order
Restaurant and Hotel Bills
- If your hotel or restaurant bill exceeds Rs. 50,000 then for paying the bill you will need a PAN card.
A PAN card helps the Income Tax Department to assess an individual or entity’s monetary transactions. It helps in identifying persons involved in tax evasion. The PAN card has the name, photograph and other related information that even make it a valid identity proof.
For Taxation
Low Misuse Chances
- The possibility of PAN card misuse is minimal. Notably, a PAN card will not change even if it is lost or stolen.
An individual should possess a PAN card to open a demat account, which is used to hold shares in the dematerialized form.
To open a Demat Account
For Tax Evaluation
- A PAN card is a tool that evaluates total tax revenue in India.
A minor can also avail a PAN card by providing his/her guardian’s PAN detail.
Easy Accessibility
Documents Required for Pan- For Individuals & HUF
Documents accepted as proof of Address :
- >> Aadhaar card
- >> Electricity Bills
- >> Landline connection Bills
- >> Bills for Broadband connection
- >> Property Registration Documents
- >> Latest order for property tax assessment
- >> Domicile certificate allotted by government
- >> Passbook of Post office account containing applicant’s address
- >> Allotment letter of accommodation issued by Central or State Government of not more than three years old
Documents accepted as Proof of Identity :
- >> Passport
- >> Aadhar card
- >> Public sector
- >> Arm’s license
- >> Voter’s ID card
- >> Copy of (any 1)
- >> Driving License
- >> School leaving certificate
- >> Ration card having Applicant’s photo
- >> Photo ID card which are issued by central government, state government or any undertaking.
- >> A certificate issued by a bank that should be duly attested, containing applicant’s photo and the bank a/c number
Documents accepted as Proof of Date of Birth :
- >> Aadhaar Card
- >> Birth Certificate issued by Indian Consulate
- >> Matriculation certificate from a recognized board
- >> Birth certificate issued by any office that is certified for issuing Birth as well as Death Certificate, like Municipal Authority
COMPANY PAN CARD
- Certificate of Registration issued by the Registrar of Companies (In Copy)
- Company PAN Card (In Copy) – Only in Case of Lost PAN Card / Correction in PAN Card
- ROCs certificate for name change (FOR CHANGES IN PAN CARD) (In Copy)
LLP PAN CARD
- Certificate of Registration issued by the Registrar of LLPs (In Copy)
- LLP PAN Card (In Copy) – Only in Case of Lost PAN Card / Correction in PAN Card
- Registrar of LLPs certificate for name change (FOR CHANGES IN PAN CARD) (In Copy)
- Partnership deed (In Copy)
FIRMS / PARTNERSHIP FIRM PAN CARD
- Certificate of Registration issued by the Registrar of Firms (In Copy)
- Firm PAN Card (In Copy) – Only in Case of Lost PAN Card / Correction in PAN Card
- Partnership deed (In Copy)
- Registrar of Firms certificate for name change (FOR CHANGES IN PAN CARD) (In Copy)
TRUST / SCHOOLS PAN CARD
- Certificate of registration number issued by Charity Commissioner (In Copy)
- Trust Deed (In Copy)
- Revised Deed/ Agreement (In Copy) (FOR CHANGES IN PAN CARD)
- Revised registration certificate (In Copy) (FOR CHANGES IN PAN CARD)
AOP, BOI & Local Authority PAN CARD
- Certificate of registration number issued by Charity Commissioner (In Copy)
- Copy of Agreement (In Copy)
- Certificate of registration number issued by registrar of cooperative society (In Copy)
- Certificate of registration number issued by any competent authority (In Copy)
- Document originating from any Central or State Government Department establishing identity and address of such person (In Copy)