Do you know you can file IT returns without having a PAN card? This is true and mandatory for every citizen of India. Apart from filling IT returns a PAN card can be used on several occasions as it also a valid proof of an individual. A PAN card generally have a photo of the cardholder, name, surname, and 10 digits alphanumeric number with proper date of birth.
A PAN number originates from the department of income tax that carries a 10-digit alphanumeric code which is unique for every individual. Identifying a PAN number would be something like this WERFX4568H. Thereafter it is easier for the department to monitor the financial transactions of the cardholder. A PAN card is compulsory for every citizen and for income tax department to track the tax paid or evaded by the individual.
Why is it necessary to have a PAN card?
It is extremely important for the individuals to declare his/her own financial statements to the income tax department. Following the condition, a PAN card is needed when opening a bank account receiving a taxable salary from the profession, fees as well as certain high-value transactions such as buying property, premium vehicles or so. The PAN card is also used when making payment of income tax or filing tax returns so that no individuals can evade the tax and this is made with the norms of the Income-tax department of India.
What is the use of PAN number?
The PAN refers to Permanent Account Number which is a unique 10-digit alphanumeric identity that is provided to individuals who intended to make financial transactions quoting the PAN number in the form for filing income tax return. Companies and organizations also comply with the rule of furnishing PAN number details while filing income tax returns.
What are the benefits of using a PAN card?
There are lots of advantages to having a PAN card issue through the income tax department Government of India. The key benefits are listed below.
- Tax deductions
- Starting a business
- Claiming the refunds from the income tax department
- Buying of physical property
- Opening a bank/demat account
- Making investment through equity/bonds and insurance
- Purchasing a foreign currency
- Bank drafts, pay orders, banker’s cheque, and cash deposits
- Sale of immovable property
As stated in the above column a PAN card is essential for all necessary financial transactions. To apply for the PAN card you can head over to the official website to fill up the form. Or if you have provided the PAN card with incorrect details or errors in Name, DOB, Father’s Name you can apply for PAN card correction with a little fee a new PAN card will be issued promptly.
The online process of filling up an online PAN card is extremely easy though you need to visit the NSDL portal or UTIITSL with the given link. To apply for PAN card you need to pay Rs 107 including the service charge if you’re residing in India. Or Rs 994 if you’re a citizen of another country and operating business in India.
Even you can apply for PAN correction form offline. But it is recommended to make use of the online portal for any correction in PAN card. You need to fill in all the details while making a correction to the PAN and fill up the required PAN details correctly quoting you existing PAN number.
Once done you have to follow few points through which you can ensure complete security and peace of mind.
- The form used in making a correction to your existing PAN is made for reissuance of PAN and through the purpose of surrending the extra PAN Card. Before doing so fill the form correctly and mark tick on the boxes carefully.
- Once you have reviewed the online form completely, ensure every detail have been providing and proceed further to submit the form. A letter of acknowledgment will be shown quoting the details made for correction along with a serial no. which has to be sent to NSDL office. Thereafter the letter should reach the office prior to 15 days of filling the form.