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Benefits of PAN Card

PAN : Application and benefits

Thanks to the digital leap and surge, all kinds of painstaking problems which took place during the past in context to the maintenance of all the important documents have come to an end. The Income Tax Department has introduced a number of remedy for the losses of all the important documents including the PAN Card or its misplacement. Thanks to the growing internet and technology, you can now register for a PAN card online without going through a number of formalities.

PAN Card is considered to be a document of identification which has been introduced by the Income Tax Department to all the taxpayers of the country. A PAN Card is a 10-digit alpha numeric number that is uniquely assigned to each assesse. Every taxpayer in the country is under an obligation to possess and maintain a PAN Card. A PAN Card assists both the income tax department as well as the tax-payer in a number of endeavors.

Here is how you can apply for the PAN Card:

PAN Card Application:

An application for the PAN Card could be made either online at the NDSL website or by applying at any of the PAN agencies located at district level. Application for the allotment of new PAN or for the correction or modification of the existing PAN could be easily made by the customers. Form 49A is the required form which is needed to be filled and submitted for the application of a new PAN.

Apart from this, there are different ways to obtain duplicate PAN card in all those situations where a person either loses or misplaces the PAN Card. Indians, NRIs as well as foreigners too can obtain PAN, although the forms as well as procedure may vary for each of these individuals. Application forms for a new PAN as well as reprint of an existing PAN are different from each other. Once an individual makes any of the above listed applications in context to the PAN, they can track the entire status of their application through the acknowledgment number which has been furnished by NSDL.

A PAN card could be applied via NSDL (National Securities Depository Limited) or via UTIISL (UTI Infrastructure Technology and Services Limited). Applicants are required to submit their PAN card applications either online or offline.

Process of online PAN Card Application:

The online process of application for a PAN card is listed below:

  • Visit the TIN NSDL or UTIISL website and then choose the option of โ€˜New PANโ€™.
  • Choose form 49A if you are Indian citizen, including NRI/NRE/OCI individual.
  • Fill all the details so mentioned in the online form.
  • Submit the firm and pay the concerned fee.
  • Print the page along with 15-digit acknowledgement and sign in the space so provided.
  • Attach the passport sized photos on the acknowledgement along with the identity proof, address proof as well as demand draft, in case you are paying through a DD.
  • Send all the above details to the NSDL office via post within 15 days of submission of the online application.
  • The PAN shall be sent to the address within a period of 15 working days.

Process of Offline PAN Card Application:

The following is the process related to offline PAN Card application:

  • Download the PAN card application from the UTIISL or NSDL website and collect the copy from the concerned agents.
  • Fill in all the details listed in the form along with the attachment of the important and supporting documents therein.
  • Submit the form and documents to the NSDL office along with the concerned fee.
  • The PAN Card shall be sent to the address that has been mentioned in the form within 15 working days.

As per the National Securities Depository Limited (NSDL) website, the whole process of printing and dispatching of the PAN Card takes an approximate time of 15 days. Once the application has been submitted for the new PAN card or for the correction in the PAN card existing, the applicant can easily track down the status of the application using the provided acknowledgment number.

Importance of PAN:

A PAN card is considered to be an important document and no taxpayer can do without it. Apart from being mandatory in order to file your Income Tax returns and to receive a tax refund, a PAN card also serves as a proof of identity and today it has been made compulsory for a number of transaction of both personal as well as business nature.

Compulsory uses of PAN:

Following listed are the compulsory uses of PAN:

  • PAN needs to be necessarily quoted during the payment of direct taxes.
  • PAN information is needed to be furnished compulsorily during the registration of a business.
  • All the taxpayers are required to input their PAN during the payment of income tax.
  • A number of financial transactions require the information related to PAN. Some of these transactions are listed below:
  1. Sale or purchase or immovable property that has been valued at Rs.5 lakh or above.
  2. Sale or purchase of a vehicle but for a two-wheeler.
  3. Payments made in the hotels and restaurants exceeding Rs.25, 000.
  4. Payments made in context with the travel requirements to other countries exceeding Rs.25, 000.
  5. Bank deposits and payments exceeding Rs.50, 000.
  6. Acquiring bonds by paying an amount equal to or exceeding Rs.50, 000.
  7. Payment exceeding Rs.5 lakh made for the purchase of jewelry, bullion or any mutual fund scheme.
  8. Payment exceeding Rs.50, 000 made during the purchase of shares.
  9. Payment exceeding Rs.50, 000 made while acquiring an insurance policy.
  10. Remitting money out of the country.
  11. Information required during the transfer of funds from the NRE to NRO account.

General uses and advantages of PAN:

Following are considered to be the general uses and advantages of PAN:

  • PAN card contains all the relevant information of an individual such as his name, age and photograph and hence it could be used as a valid identity proof throughout the country.
  • PAN is considered to be the best possible way to be used for the tracking of your tax payment.
  • Since PAN happens to be a unique document for each identity hence there exists no misuse of it for the purpose of tax evasion, etc.
  • PAN card is also taken into use to avail a number of household connections such as telephone, electricity, internet and LPG.
  • PAN can be used to track down all the important information related to the payment of taxes, investments made by the individuals, their debt liability and various other information as required by the Income tax department.

 

 

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Chalo Niveshak

We are financial Advisor based at Ahmedabad. having a vaste experience of more than 10 years in financial sector. More than 500 families are happily enjoying services provided by us in their financial planning journey. We are also associated with more than 10000 financial advisors accross India and discussing about various needs and problems of investors. so we know how to deal with various objectives of various goals of our investors better than others.

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