PAN Card: Meaning, Purpose, Types, Advantages, and Use

PAN Card 2020, PAN Card, PAN Card Form, PAN Card Online, PAN Card Apply, Online PAN Card, Online Apply: As all people know the fact that how important or mandatory it has become to make a PAN Card. It has become a very important document for all the citizens of India. With the help of PAN Card, everyone would be able to make any government document or paper by just showing them a copy of their original or photocopy of PAN Card. Here In this given article, we will discover or discuss everything related to PAN Card, PAN Card Form, PAN Card Online Apply, PAN Card Types, Eligibility conditions, and Important Documents. If anyone wants to know about the PAN Card, and various different techniques related to the PAN Card, then everyone has to read this article very carefully and apply online for it.

Topic Name	PAN Card: Meaning, Purpose, Types, Advantages, and Use
Article Category	Meaning of PAN Card The Requirement of a PAN Card Classification of PAN Card Types Main Purpose of PAN Card Advantages and utilization of a PAN Card Frequently Asked Questions
PDF of PAN Application Form [49A]	Click Here

Meaning of PAN Card

PAN which stands for Permanent Account Number. Here we will explain the exact Significance of a PAN Card. So, Permanent Account Number is a type of citizen recognition number that is authorized to every taxpayer in the country. It is a type of computerized process from where every people can check their tax record with the help of PAN Card Number. Let us tell you that with the help of PAN Card, every information related to the tax were taped inside it. Generally, it is a type of fundamental cache of all memory & information. And, is commonly distributed among countries. So, it is important for all to not have 2 taxpayers from only one PAN Card Number. According to the Department of Income Tax below the Income Tax Act [1961] has declared Permanent Account Number for all Indians, Individuals, Non-Indian citizens. 

 

Also read: PAN Card Structure

It is important for all people of India to make a PAN Card for their future use. Generally, it is made up of a ten-digit alphanumerical figure that is stamped on a covered plastic board or card which is commonly known as a PAN Card. It is important for every citizen not to have an exact PAN Number. It is a type of legal document made by the government of India. In this, every transaction information would be stored. Every overseas passport partner or any minor citizen should be able to apply for a PAN Card. It can be received from the government by just filling an application form with all important documents. This document can be received with the help of both online and offline ability. Or you should visit TIN Pan Card Centre. If someone has more than one PAN Card, then there should be a fine as per the Income Tax Department rules & regulations.

Overview of PAN Card

PAN Card issuing Company Name	Department of Income Tax, Government of India
PAN Card Cost	Rs.110/-
PAN Card Inception	1972
PAN Card Validity	Lifetime
Customer Care Number of PAN Card	020 – 27218080
Total number of Enrolments (approx)	Nearly 25 crores (approx)

The Requirement of a PAN Card

As we already know that PAN is a type of particular recognition number that should be available for all taxpayers of our country. Here we discuss all of the important techniques from where a PAN Card is to be required. An important use of a PAN Card is in:

• Applicant Individuality Proof
• Applicant resident proof
• Connection of Gas
• Every Financial Agreement
• Connection of Phone
• Important for all to start paying taxes.
• Used in Business Registration
• With this, you are eligible to open a new Bank Account
• Connection of Phone.
• Used in Mutual Funds: It is important for all to get completed their e-KYC for receiving investments under Mutual Funds.

In the year 2019, According to the Union Budget, they announced to all citizens that they can use an Aadhaar Card in place of PAN Card. It has to be done while filling an application form of income tax return only on or after 01.09.2019. According to the 2019 plan, all officers of Income Tax can assign PAN Card to all of their taxpayers.

Also Read: TAN Verification

Classification of PAN Card Types

As everybody knows the fact that the PAN Card has played an important role in every citizen’s financial transaction history. Here, we will discuss the various important Types of PAN Card. So, According to the Department of Income Tax, they will distribute PAN Card to all the citizens according to their classification. PAN Card has been divided into various classification such as Individual, Company, Hindu Undivided Family [HUF], Partnership Firms, Overseas Citizens or NRIs, and NGOs. So, the Classification of PAN Card is given below:

• • For All Individuals: It is for all individual people to just track and get linked all of their transaction histories as a record with the help of IT staff. According to the particular person data, IT staff would be able to help it out while calculating the total amount and tax payable amount.

• For all Companies: It is also the same exact to PAN Card as given for all individuals. The only change is the picture of PAN Cardholder along with the birth date which is mention on the individual’s PAN Cardholder. In this Card, Enrollment number and date of particular company and organization are specified on this physical card.

• For Overseas Residents in India: If any overseas citizen passport person wants to start their business in India and make an investment from it, then he or she must have PAN Card. If not, then they will have to first make a PAN Card and then do further proceedings. Other than this, if you are a resident of India, then also you need to make a PAN Card by using PAN Application Form 49A and submitted it to the respective office. For the verification process, every overseas citizen, NRI candidates can bring their respective copy of passport, Aadhaar Card as provided by UIDAI, PIO Card copy, and etc.

Main Purpose of PAN Card

Here we will discuss the main purpose of PAN Card. As we all know that making a PAN Card will become the most important task in everybody’s life. And, there are around many objectives or you say reasons behind the making of a PAN Card. Because of these objectives, an individual can make a PAN Card for their future references. The main objectives are:

• Register Income Tax Returns: The basic objective behind the making of a PAN Card is to register income tax returns. In this process, every individual and taxpayer must have to complete their PAN details and it is mandatory for all who else wants to get register on it.
• Spend in Financial Retail: It is mandatory for all financial retail share market individuals to make a PAN Card. Because of this, they can easily open an account in a Demat bank.
• Spend in Real Estate Retail: If someone has to buy or sell their property, house, or land, then he or she needs a copy of PAN Card. For this purpose, it also plays an important role while spending money on real estate.
• Avail Bank Ease: For this, both Indians, as well as NRIs citizen, must have their bank accounts. With the PAN Card facility, they can open an NRO and NRE bank accounts and avail a number of benefits from it. With these bank accounts, they secure all of their payment and easily apply for a loan from anyone bank in India.
• Register for passport and visa: While making a passport or visa, it is mandatory for all people to have a PAN Card. For this, the PAN Card plays an important role in individual identity proof.

So, these are the main reasons that show why is it important to make a PAN Card. Hence, we conclude all important points related to the making of a PAN Card and its importance.

Advantages and utilization of a PAN Card

Like everybody knows how important is to make a PAN Card. It is not like that if you have a PAN Card, then it only required to make government documents. But other than this, it also has a number of benefits having a PAN Card. Here we discuss the various different types of benefits for every PAN cardholder, which is given as follows:

• • Obtaining Deduction in Tax: According to the rules & regulations of the Income Tax Department, it is important for all taxpayers to have their own PAN Card. It is not only used for the purpose of file an income tax return but it also plays an important role in obtaining a tax deduction. As soon as someone’s bank account linked with a PAN Card Number, then the respective bank would reduce 10% TDS in place of a more rate of 30% through bank account person total annual earning on saving account will surpass to Rs.10000/-.
  • Demand Tax Repay: It is important for every applicant to get back a tax repay document. This document is mandatory for checking all types of prospects at a bank loan. A person is able to worthy of any kind of repay if his or her TDS amount would be increased. So, PAN Card is usually mandatory to get demand or claim for an individual tax refund.

• Purchase a Car: If you want to buy or sell a car or if you want to apply for a particular car loan, then there is also a need or importance of a PAN Card. For this purpose, the PAN Card also plays an important role in buy or sell any four-wheeler vehicle.

• Buying Overseas Currencies: With the use of PAN Card, every individual person should be able to purchase any kind of overseas currency which is of more than Rs.50000/-. If you want to buy any kind of Overseas Currency, then it is important for you all to show a PAN Card details and a copy of a PAN Card.

• For any Investment: If someone wishes to buy or doing investment in any stock market, financial market, real estate market, and etc, then also he or she needs to show their PAN Card. This work is done only with the help of a PAN Card.
• Start a Business: If someone wishes to start his or her business, or to start any company, then also they need to have a PAN Card. We will let you know that every company can get a Tax Registration Number (TRN) with the help of a PAN Card without facing any problems.
• Get all Bank Facility: With the help of a PAN Card, every citizen can simply make a bank account, take benefit from that bank account, pay the order, get all bank draft, get cheque facility, issuing a credit card facility, and deposit cash with more than of limit of Rs.50000/-.
• Government Profit: With the help of a PAN Card, it tracks every fraud case that will be done under government. PAN Card also plays an important role in while checking all tax history and make sure that every payment will be done between seller or buyer.

I hope you will understand this article very well and are ready to take benefit from it. If you are facing any problems related to the meaning of a PAN Card, Application Form, and PAN Card Advantages then you may ask your queries in the given comment box.

Frequently Asked Questions

What do you understand by the term PAN Card?

PAN Card is also known as a Permanent Account Number. It is a type of unique identity number which is provided by the government of India. It is a legal document that is used to make all other government documents such as Passport, Visa, Bank Account, and etc.

How much does it cost for making a PAN Card?

It cost around Rs.110/- for making a PAN Card.

How many types of a PAN Card are available in India?

Types of PAN Card are Individual, Company, Society, Trusts, HUF [Hindu Undivided Family], Overseas citizen, and Partnership.

Is this PAN Card will be available for a lifetime?

Yes, the availability of a PAN Card will be for a lifetime.

Can we apply for a PAN Card by the method of Online or Offline Process?

Yes, now we can apply for a PAN Card with the help of both Online or Offline facility.

Name some advantages of using a PAN Card?

Some advantages are to start a new business, buy or sell any vehicle, in any investment, and etc.