The basic requirement of a PAN card is to pay tax, so if your annual income falls in the taxpaying slab, you’ll need a card. Other reasons for a PAN card include opening a bank account in India. Anyone who wants to venture into the e-commerce business like Amazon or eBay may require a PAN card. Whether you earn enough to pay tax to the Indian government, you may still be asked for your PAN card, so it’s necessary to have it on hand.
If you are not from India, but would like to invest there, or indulge into any form of financial transactions in the country, you may require a PAN Card. While the basic requirement is to file an income tax return, a PAN Card is needed for many other things as well. The cost of the card varies from about 110 INR for Indian nationals to about 1200 INR for foreign residents.
Structure of a PAN Card
Every PAN card has the individual’s name, date of birth, photograph, father’s name and sometimes a date of issue, depending upon whether it is issued by NSDL (National Securities Depository Limited) or UTI-TSL (UTI Infrastructure Technology And Services Limited). Codes found on the card start with letters, followed by four numerals, with the last being a letter again.
If you check the fourth character in any Pan Card, you can learn if it’s an individual’s card or a trust or government body. The letters are different and fixed for each one. The last letter allows you to cross-check as a check-sum by the government body.
What is a Pan Card
What do you know about your tax and income? You can spend hours online trying to work out what something is, but at the end of the day, it’s still difficult to understand fully. The problem is people are expected to know everything about everything, and that’s not realistic. So, do you know what a PAN card is? What is a PAN card? Who needs a PAN card? How can a PAN card be used, and where do you need one?
PAN stands for Permanent Account Number. It’s a plastic card with a unique code inscribed on it and is issued to taxpayers in India. PAN cards are an identification mechanism for individuals with tax to pay. The Indian income tax department issue PAN cards and cardholders will receive a 10 digit alphanumeric code on their cards, which is unique to them. PAN cards can be issued to foreign investors and does not serve as proof of citizenship.
Companies must have separate PAN cards as they’re considered separate entities from a tax point of view. Applying for a PAN card is relatively easy and will be sent registered mail to your home address. You also have the ability to get a card at a tax office. However, the overall process is fast if you submit all the required documents. The card comes with lifetime validity for the cardholder, and the process is easy, quick, and hassle-free. You can change your residence any number of times, but the PAN Card number doesn’t change.