why companies ask for pan card

Companies ask for a Permanent Account Number (PAN) card primarily for identity verification, tax, and legal compliance. As a unique 10-digit alphanumeric identifier, it is mandatory for various professional and financial activities in India.

• Identity Verification: It confirms a person’s legal identity for employee background verification and prevents impersonation or fraud.
• Tax Compliance: It is essential for a company to correctly deduct Tax Deducted at Source (TDS) and for filing the employee’s Income Tax Return (ITR).
• Unique Identification: It is used in hiring systems to track candidates, prevent duplicate applications, and detect dual employment or moonlighting.
• Legal Requirements: Companies require it for formal documentation, Know Your Customer (KYC) compliance, and registering for GST.