What is Permanent Account Number (PAN)?
Permanent Account Number (PAN) is the identifying number of Indian Income-tax payers. It is a must for anyone who wants to file his Income-tax return.
It is issued by the Indian Income Tax Department under the supervision of the Central Board for Direct Taxes (CBDT) and it also serves as an important proof of identification.
The primary purpose of PAN is to bring a universal identification to all financial transactions and to prevent tax evasion by keeping track of monetary transactions of high-net-worth individuals.
A sample format of PAN is AAAPL1234C.
In a PAN, 4th character is a deciding factor whether it is for an Individual or Company or HUF, etc.
For example if the 4th charachter is:
- P is for Individual / Personal.
- H is for HUF.
- C is for Company.
- T is for Trust.
- F is for Firm.
- A is for 'Association of Persons'.
- B is for 'Body of Individuals'.
- G is for Government.
- L is for 'Local Authority'.
- J is for Judicial Person.
Obtaining a Permanent Account Number is necessary for most of the financial transactions done in India. PAN is required for filing of Income-tax return, obtaining a loan from bank, high value transactions, asset purchase etc. This has become mandatory in almost all the financial transactions.
How to obtain a Permanent Account Number (PAN)?
What are the benefits of obtaining a Permanent Account Number (PAN)?
Obtaining a Permanent Account Number is a necessity for most of the financial transactions done in India. Like filing of Income-tax return, obtaining a loan from bank, high value transactions, asset purchase, etc. There are certain benefits that come with this. Like:
- It acts as an Identity proof in India.
- If you wish to file tax return in India it helps you complete the process.
- You cannot claim a refund to the taxes paid/deducted unless you have a PAN.
- If you wish to carry any financial or investment related transaction, this helps you complete it.
- It helps to start a business.
- If you wish to buy/sell property, open trading account or investment account it is helps.
- If you wish to remit money outside India it is helpful.
- It helps in transferring funds from NRE to NRO bank accounts.
- It helps to get loans or mortgages anything.
- It helps to transfer fund to a third party.
And many more places where a PAN helps you. This has become a mandatory part in almost all the financial transactions in the country.
How to find PAN online ?
You can get your PAN number online at Income Tax Website by entering your basic details. Click here to find your PAN.