PAN CARD

Permanent Account Number (PAN), the ten-digit number, issued by the Income Tax Department in India, counts as one of the most important documents as the unique identification number allotted to each taxpayer of the country. It is a unique identifier issued to all judicial entities identifiable under the Indian Income Tax Act, 1961. The income tax PAN and its linked card are issued under Section 139A of the Income Tax Act. It is issued by the Indian Income Tax Department under the supervision of the Central Board for Direct Taxes (CBDT) and it also serve as an important proof of identification.

Uses of PAN

The primary purpose of the PAN is to bring a universal identification to all financial transactions and to prevent tax evasion   by keeping track of monetary transactions, especially those of high-net-worth individuals who can impact the economy. Quoting the PAN is mandatory when filing income tax returns, tax deducted at source (TDS), or any other communication with the Income Tax Department. The PAN is also steadily becoming a mandatory document for opening a new bank account, a Demat account, a new landline telephone connection / a mobile phone connection, purchase of foreign currency, bank deposits above ₹50,000, purchase and sale of immovable properties, vehicles, etc.