India is a country which is specifically known for its diversity and population. There exists a host of varied castes and religions and every individual is differentiated based on various religious grounds, caste, creed, region and other societal parameters. For the government to be successful, every individual is directed to pay a certain sum of money in the form of tax based on his income so that the government runs smoothly and ensure law and order in the country. Previously, due to unawareness among people regarding the tax system, not many people took part in the taxation system. But with the passage of time, as people gained knowledge and information regarding the same, they became a voluntary part of the taxation system of the country. Previously the government introduced a special system called GIR system that made each individual unique in the eye of the government. But as this system was manual in nature and it benefitted only a single individual or assessing officer, it failed to have a global effect. So after a lot of deliberation on the part of the government, in the year 1972, a unique concept of PAN was introduced by the Indian Government which was made compulsory under section 139A of the Indian Tax Act, 1961. PAN is a unique 10 digit identification number that recognises individuals registered under NPS.
Know Your PAN Card Number
If you don't having your PAN card number, don't worry about that. You can get on e filing website by just entering you name and date of birth. Even you don't have to sign up or login on Income Tax e-filling website.
We all know that PAN is mandatory for every tax payer. The government has made it compulsory only because of its varied uses and benefits.. Following are the widespread needs and uses of the PAN card:
- PAN is required if the tax payer wishes to pay direct taxes.
- If a tax payer is starting a new business venture and it needs to be registered, then PAN details are compulsorily required.
- PAN card are required by tax payers for the payment of income tax.
- If the tax payer is undertaking different financial transactions, PAN card details are required. The financial transactions can be anything like sale or purchase of a vehicle, buying a property, etc. The different financial transactions are as follows:
- Fund transfer from NRE to NRO account.
- Global remittance of money.
- Buying insurance policy of Rs 50,000 or more.
- Purchasing shares for Rs 50,000 or more.
- Sale or purchase of immovable property of Rs 5 lakhs or more.
- Sale or purchase of a vehicle other than a two-wheeler.
- Hotel or restaurant bill payment of value Rs 25,000 or more.
- Buying schemes related to mutual funds.
- Making bank deposits of Rs 50,000 or more.
- PAN card can also alternatively be used as the identity proof of the tax payer.
- Through PAN, the tax payer can also keep a check on the tax payment.
- If the tax payer wishes to opt for different connections like internet, telephone, etc., the PAN card number can be used for the same.
- Again, various financial transactions can also be tracked by the tax payer with the help of the PAN number.
We all know that the PAN card procedure is compulsory for every tax payer to have. Various centres and agencies are present even in the rural parts of India so that the tax payers can easily apply for PAN card. The PAN card application process is very easy and user friendly. It can be done both online and offline. The online PAN card application process takes place on its official website or NSDL website and the offline application process takes place at the various PAN agencies and centres that are present at the district level. For both online as well as offline PAN application, a special form called form 49A needs to be filled properly and submitted by the tax payer.
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The PAN card is a very important document that contains certain details of tax payers. The details that the PAN card contains are as follows:
- Permanent Account Number of the individual.
- Complete name of the individual who holds the card.
- PAN card holder’s father’s name.
- Date of birth.
- Signature of the card holder.
For a successful application of PAN card, the tax payer is supposed to present a host of supporting documents along with the form 49A to the NSDL agencies. These documents are proof of identity of the individual, residential address proof and also the proof of the date of birth of the tax payer.
Though the process of PAN card application is very easy and trouble-free, a slight mistake on the part of the tax payer can create many problems. The applicant must always remember certain pointers that are to be thoroughly followed for a proper PAN card application process. These pointers are as follows:
- The details filled in the PAN card form should coincide with the details mentioned in the supporting documents like identity proof and address proof provided by the tax payer.
- To avoid PAN card disqualification, the thumb impression of the applicant should be attested by the Notary or the Magistrate before form submission.
- The address mentioned in the form should be full and other contact details should also be accurate and proper.
- The application form 49A should be filled in capital letters.
- No form of corrections or overwriting should be done in the application form.
- In the columns of first name and last name, initials should not be used.
- A new PAN card should not be applied if the previous one is lost or stolen.
Applicants can fill two types of form for a new PAN card. These forms are as follows:
- Form 49A- All Indian citizens, companies, firms, trusts, NGOs, minors and students have to submit this form.
- Form 49AA- This form is mainly submitted by nationals residing outside India but are paying taxes in India.
- Form 60
- Form 61