PAN Card — Who are You?
Permanent Account Number or PAN is a 10-digit numeric code which stores information of all the financial transactions. Every tax-payer in India is assigned a PAN through which he/she can file Income Tax and pay taxes. The concept of PAN was introduced by the Government of India in 1972. At first, this system of PAN Card was voluntary, but as the time passed it was made compulsory for every tax-payer under section 139A of the Income-Tax Act. The process of PAN card application can be done using both offline and online means. The offline application process takes place at any PAN agencies whereas online application is done at the NSDL website. The ‘Form 49A’ is available online and after submitting this form, the applicant receives his/her Pan card.
Pan Card Advantages
- For purchase/sale of vehicles (except two wheelers).
- For the application related to credit card issuance.
- For the opening of demat account which is done with any depository/or with any person with Securities Exchange Board of India (SEBI), or with a custodian of securities.
- For cash payment which is more than INR 50,000 (to any hotel, for international traveling, or whilst making bank drafts/bankers cheques/pay orders).
- For paying an amount of money more than INR 50,000 (to any mutual fund company for buying units, to RBI, buying bonds issued by RBI, to the Central Bank of India, to any corporate organization/ to a public institution for buying its bonds or debentures issued by the institution or by the company).
- For the payment of life-insurance as a premium to the insurer for an amount more than INR 50,000 in any financial year.
- For buying & selling of a company’s shares wherein the company is not listed in a recognized stock exchange for an amount more than INR 100000/ transaction.
- For buying OR selling securities (except shares) for amount which is more than INR 100000/ transaction.
- For buying & selling of goods or services of any nature (other than immovable property for an amount exceeding INR 2/ transaction).
- A declaration in Form number 60 can be made only if a person does not have a PAN Card.
Not To Miss: PAN Card application can be submitted online into two versions:
- UTI Infrastructure Technology & Services Limited (UTIITSL) &
- National Securities Depository Limited (NSDL).
Above-mentioned authorities have been authorized by Income-Tax department.
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*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.
Source: https://www.gulaq.com/pan-card-have-got-you-covered/
