Of course you must be having one - a PAN card. But are you aware what exactly does it stand for? In case you are like the majority of us who use it but don't know the reason behind its existence, here's the information. PAN or Permanent Account Number is a unique 10-digit alphanumeric number ( a combination of alphabets and numbers) allotted to every citizen of India, typically to those who pay taxes.
To put it out more clearly, every Indian tax-paying entity whether it is you as an individual or companies, non-resident Indians or absolutely anyone who pays taxes in India 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 or tax-paying entities can have the same PAN, not even your same family member.
The Income Tax Department issues a PAN Card when a PAN is assigned to an entity. PAN is a number, but 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.
Since it is unaffected by any address changes, your PAN Card remains valid for life - a permanent thing.
Now in case you are wondering what is PAN card used for:
Here's the 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
No wonder it is a very important document as it 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 often 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.
