The Permanent Account Number (PAN) is a unique ten-digit alphanumeric number which is printed on a PAN card, assigned to Indians, mostly to those who pay tax, It is issued by the Income Tax Department under the Income Tax Act, 1961
PAN Card is valid for lifetime because it is unaffected by any change in address.
For offline support, applicants can approach any of the authorised TIN-Facilitation (TIN-FCs) and PAN centres.
Who should apply for PAN?
It serves as a proof of identity for all taxpayers – individuals and entities – in many situations, especially when performing any kind of financial transaction in the country.
The Permanent Account Number is a unique and permanent set of figures that remains unchanged throughout the lifespan of the PAN holder. It is mandatory to have a PAN card for executing various tasks such must for non-resident Indians (NRIs) living outside India and even foreign passport holders.
Also, minors can apply for a PAN card through a representative assesse.
A PAN card is necessary for various activities. Here are some of them:
To file income tax returns
It serves as a proof of identity
To open a new bank account and depository account
To apply for credit card and bank loans
Registration of Business
For sale or purchase of a car or any other vehicle (apart from two wheeler)
Payment of an amount Rs. 50000 and more towards investment purpose
For jewellery purchase after the prescribed limit
Mutual Fund – PAN is beneficial to complete e-KYC for mutual fund investments.
Documents for PAN
PAN requires two types of documents.
Proof of address (POA) and Proof of Identity (POI).
Any two of the following documents should meet the criteria: