Do you know what a PAN (Permanent Account Number) is and why it is important to have one?
PAN serves as a unique 10-digit alphanumeric identifier issued by the Income Tax Department.
It is used for tracking financial transactions and tax purposes. Simply put, the taxman tracks and links all your financial activities to you through your PAN.
It is compulsory for individuals to have a PAN card to file income tax returns, conduct high-value transactions, and for performing a host of other financial activities.
One can apply for a PAN card either online or offline through designated agencies like NSDL or UTIITSL. The applicant needs to provide proof of identity, address, and date of birth.
PAN is often used as a valid identification proof for various services, including opening bank accounts and applying for loans.
PAN must be linked with Aadhaar, as per laws, to avoid penalties and ensure accurate tax processing.
The PAN card contains the PAN number, the cardholder's name, date of birth, and photograph. It also includes a QR code for verification.
One can update details like name, address, or photograph on their PAN card by submitting the requisite forms and documents.
If the PAN card is lost or damaged, you can apply for a reprint or duplicate card (through the same agencies) using your existing PAN number.
PAN is crucial for compliance with various financial regulations.
Once issued, a PAN card is valid for life, provided there are no changes in the PAN number itself, and it is neither cancelled nor surrendered.