The Government of India introduced the PAN or the Personal Account Number in a bid to prevent tax evasion. This was essentially taken care of by ensuring that all financial transactions made by individuals and entities will be linked to their PAN Cards. This step has significantly helped the Income Tax Department to gain access to and maintain records of all major transactions for the purposes of taxation.
However, PAN Card has a wide array of other uses as well. But, before we get to them, let us understand who can apply for a PAN Card.
- All citizens of India
- Non-Resident Indians (NRIs)
- Overseas Citizen of India (OCI)
- Person of Indian Origin (PIO)
Now that we know, who can apply for a PAN Card, let us understand some of the inherent benefits of having a PAN Card.
- IT Returns
Whether you are an individual or a business entity, if you are eligible for filing tax returns, you necessarily need to own a PAN card. This is one of the most significant uses of this government-issued identity proof.
- New Bank Account
In order to open a new bank account, whether in a private, public or co-operative bank, it is mandatory to furnish your account details in the application form.
- Purchase or Sale of an Automobile
For any vehicle costing Rs. 5 lakh or above, it is compulsory to submit a copy of your PAN card. This is true for both, buying as well as selling the vehicle.
- New Credit/Debit Card and Loan Application
As is the case with opening a new bank account, you will also need to submit your PAN details, while applying for a new credit/debit card as well as a loan. In case you do not provide the details, not only will your application get rejected, but it will also decrease your chances of getting a card or approval for loans in the future.
PAN is required to be quoted while applying for a debit or credit card. Non-quoting of PAN can result in the rejection of the card and in turn reduce your credit score. This will reduce the chances of getting a loan or credit card in the future.
- Purchase of Jewellery
If you’re planning to buy jewellery worth Rs. 5 lakh or more, you will be required to provide the details of your PAN card at the time of billing.
One of the most trusted ways to build your wealth is through investment in equities, mutual funds, bonds as well as debentures. Here as well, you will need to offer your PAN details in case you are-
- Purchasing mutual funds worth Rs. 50,000 or more
- Buying or selling securities worth Rs. 1 lakh or more
- Making transactions worth Rs. 50,000 or more for the purpose of investing in securities.
- Proof of Identity
A PAN card essentially doubles up as a valid proof of identity anywhere in the country, It also acts as a proof of age, and can be used when applying for –
- Voter ID
- Aadhar Card
- Driving Licence
- Electricity Connection
- Cooking Gas Connection
- Telephone Connection (Landline and Cellular)
- Foreign Exchange
In case you’re travelling internationally, and wish to exchange Indian Currency for the Local Currency you will need to provide your PAN details. This holds true, whether you are converting the money at a bank or a foreign exchange bureau
- Purchase, Sale or Renting Out Property
In case of buying, selling or renting property in India, it is now mandatory that the PAN details of both, the buyer as well as the seller need to be included in the sale/rent deed.
- Cash/Fixed Deposits
Whether you wish to make a cash deposit in an existing account or open up a new Fixed Deposit account if the amount of deposit is Rs. 50,000 or more, you will be required to submit a copy of your PAN Card.
- Insurance Payments
Again, for a payment towards insurances exceeding Rs. 50,000 a year, you will need to furnish your PAN details. This has been mandated by the Income Tax Department.
How to get a PAN Card?
Now that you understand the significance of having a PAN Card, we can understand that you must be eager to know how you can apply for the same. Well, it is quite simple. There are two promising ways to apply for a PAN Card, as listed below
- Online Application
In order to apply online, all you need to do is visit the NSDL website and follow the instructions.
- Payworld Pan Service Agent (PSA)
If you don’t want to burden yourself with the hassle of online application, feel free to visit your nearest Payworld PAN Service Agent (PSA) and submit your application!
Want to become a Payworld PSA & excel your earnings ? Simply click here: http://bit.ly/PwSignUp