What is PAN Card?
PAN Card is one of the most significant documents for a citizen residing in India. A PAN Card is abbreviated as Permanent Account Number and in short it is referred to as PAN Card. But, do you know the actual use of a PAN Card? A PAN Card is essential for all the tax payers at the time of filing their income tax returns online. The PAN Card is issued by the income tax department for all the eligible applicants. Here is everything you need to know about Permanent Account Number (PAN) Card and the significance of the PAN Card. Take a look!
What is a PAN Card?
A PAN Card is an essential document which is used by a tax payer during income tax returns e-filing. A PAN Card is a 10 digit alpha numeric number which is a unique identifier of every Indian income tax payer. A PAN Card is usually issued by the Income Tax Department under the Indian Income Tax Act 1961for all the eligible tax payers who fulfil all the juristic entities. A PAN Card usually appears like a driving licence or voter ID card which comprises of 10 digit unique alpha numeric codes called Permanent Account Number.
This unique 10 digit code is allotted by the Income Tax Department for every Indian individual who files IT Returns every year. A PAN Card is also used at the time of making some huge transactions and transparency. A PAN Card once issued to a person will be valid throughout their lifetime. Despite the address of PAN Card holder changes, it will not show any kind of impact on your PAN Card.
Significance of PAN Card
A PAN Card is a crucial document which is necessary for each and every tax payer who files income tax returns online every year. A PAN Card is also used for commercial units and for making certain transactions. Currently, a PAN Card is also used as an identity card just like your Aadhaar Card. If you wish to make a transaction of about 5 lakhs and more, you need to show a proof of your PAN Card. A PAN Card is also required for mutual funds, purchase of four wheelers, purchase of some fixed assets and security investments.
That’s it! This is all you need to know about a PAN Card. Hope this guide helps you in the best way to understand more about the PAN Card.