What is PAN?
The full form of PAN is Permanent Account Number, which refers to a 10 digit alphanumeric number assigned by the Income Tax Department of India. This number is a combination of numbers and alphabets. For example: ABSLQ3426L.
The permanent account number is imprinted on the PAN card issued to individuals which also holds their basic information such as Name, DOB, photograph etc. A PAN card is mandatory for all the salaried employees as well as professionals.
Uses of PAN
- Income Tax Filing: PAN helps the Income Tax Department with an individual’s financial transactions and the income resources.
- Opening a bank account: PAN card is a crucial document if you wish to open your bank account.
- Investment: At the time of purchasing mutual funds, stocks, bonds or while making any other investment, PAN is necessary.
- Loans: A user needs a PAN to apply for loans as well as credit cards. It helps in understanding the user’s creditworthiness.
- Government Schemes: If one wants to avail any government scheme or subsidiary, PAN card is a must.
- Identification Proof: PAN also acts as an identification tool for any individual.
- International transactions: In order to transfer funds internationally, one must have a PAN number to deal with any tax related regulations.
How to Apply for a PAN Card?
- Visit NSDL (National Security Depository Limited) or UTIITSL (UTI Infrastructure Technology and Services Limited) to find the form that needs to be filled (Form 49A is assigned for Indian citizens).
- Fill in the application form, attach all the asked documents and pay the fee charged.
- One can also track their information on the same websites.
- Additionally, one can visit the district level PAN agency to fill and submit the application form.
