The PAN card is a nationally accepted photo identity card that enables an individual or a company to do transactions, seek for a loan or an ITR. It is issued by the government of India under its department of income tax. The PAN card consists of some important details of an individual as the name, date of birth, address and the most crucial PAN number. Every PAN card holder has a unique ten digit PAN number which remains unchanged. The income tax department of our country issues this alphanumeric code. You may make alterations in your PAN card regarding your name or residential address and update it to the concerned income tax department. However you cannot make any change with the registered PAN number, it remains the same.
What is the use of PAN card for the Income Tax Department?
The PAN card allows the IT department to link all economic transactions with every person. It ensures that the tax payments are regularly made or not. As all the transactions are routed through IT department, they are well equipped with the documents. Hence, a systematic record is maintained. For more information one can always check the online website of the department. To abide the income tax laws fully, you must file for a PAN card.
What are the advantages of PAN card?
PAN card doesn’t come with loads of benefits for a person, however if you are engaged in buying and selling properties, shares or debentures then it is rather compulsory to have one. Also, it is beneficial to the tax payers as it decreases the TDS (tax deductible at source) by around 10%.
What is the use of PAN card for an individual?
According to the Income Tax Act 1961, the most significant purpose of this card is that it categorise you under the tax paying citizen. The PAN, when distributed, is supervised by The Central Board of Direct Taxes (CBDT) through the IT department of India. The PAN serves as a valid, reliable and permanent identity proof which lets you carry on the financial transactions easily. It also helps you while opening a Demat account, salary account or a bank account. The Income Tax Department of India also uses your PAN while monitoring your transactions.
Why it’s necessary to own a PAN card?
It may not be possible for you to do the heavy financial transactions. However as an alternative, there is a provision of using form 61 and form 60 instead of PAN. For the transactions below Rs 50,000, it is not compulsory to have a PAN if you are an NRI or a farmer. It has defined the process of buying and selling. For the government of India, it serves as a helping hand while calculating the money flow in the domestic territory.
What is the procedure of applying for a PAN?
The process for getting a PAN card is very simplified. Being an NRI one can apply it himself or through an agent. The form 49AA is downloaded initially from the NSDL website or Income Tax department, UTIISIL. The form is also available at any nearest TIN Facilitation Centre or the income tax PAN service department.
It is not essential to be in the country for applying it; you may do it when you are overseas. The documents stated below are needed to accelerate the process.
- A passport size photograph
- An identity proof
- Assessing Officer Details
- Residential address
How long does the process take?
One may not ensure you with the exact period for the procedure as is it a government task. But, it will be done within 20 days, including the shipping process to abroad from the date of applying.
What is the shipping process?
The income tax department of India sends the PAN card through India Speed post, the government courier service. You can get yourself updated with its consignment number, by checking the status online. There is also other options of shipping as per your preference like FEDEX, DHL, UPS, etc. but the extra cost coming with them is to be borne by the respective applicant.
Thus, even NRIs can apply for PAN CARD and the steps are very simple.
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