Introduction
PAN or Permanent Account Number is used to identify different taxpayers in the country. It consists of a unique 10-digit alphanumeric number (a combination of alphabets and numbers) allotted to every citizen of India, typically to those who pay taxes.
Every Indian tax-paying entity is given a unique identification number through the computer-based PAN system of identification. By using this technique, a person's entire tax-related information is stored against a single PAN number, which serves as the main key for data storage. Since it is shared throughout the nation, no two individuals on tax-paying entities can have the same PAN. It is issued to individuals, companies, non-resident Indians or anyone who pays taxes in India.
The Income Tax Department issues a PAN Card when a PAN is assigned to an entity. PAN is a number, but the PAN Card is a physical card that also includes your name, date of birth, father's or spouse's name, and a photograph in addition to your PAN. Copies of this card may be used as identification or date-of-birth proof.
Due to the fact that it is unaffected by any address changes, your PAN Card remains valid for life.
Here’s a list of transactions which requires your PAN Card:
- Address Proof
- Identity Proof
- Opening a bank account
- Submitting IT returns
- Loan Application
- Gas or phone connection
- Buying or selling a new property
- Financial Transactions
- Registration of a new business
- Obtaining a credit or debit card
- Opening a fixed deposit account
- Making premium payments for insurance
The PAN Card is recognised as a legitimate form of identification across the nation because it includes details like Name, Age, and a photo. Though we often use our PAN cards for various reasons, we do not realize the importance of PAN Card, what does the alphanumeric number in a PAN card stand for, how to apply for a PAN Card or what is to be done if you lose your PAN Card.
Look up more articles here for a smooth first time tax-filing process. All the best!
