PAN Card Registration
The Permanent Account Number (PAN) is unique, national & permanent. This is unaffected by a alternation of address, even between states in India. Permanent Account Number abbreviated as PAN is 10-digit alphanumeric number administered by the Income Tax Department to taxpayers.
About PAN Card
Income Tax Department has authorised UTI Infrastructure Technology and Services Limited (UTIITSL) and Natinoal Securities Depository Limited (NSDL) to set-up and manage PAN Services Centers.Thus, a person wishing to obtain PAN can apply by submitting the PAN application form (Form 49A-(Indian Citizens)/49AA (Foreign Citizens) along with the related documents and prescribed fees at the Pan application center of UTIITSL or NSDL.An online application can also be made from the website of UTIITSL or NSDL. It also serves as an important ID proof.
Benefits Of PAN Card
Tax Deductions
As a universal identification key the PAN helps to direct all financial transactions of high-net-worth individuals and thereby indirectly prevent tax evasion.
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Claiming Income Tax Refund
From 1 January 2005 it has been made mandatory to mention the Permanent Account Number on challans for any payments due to Income Tax Department. It is also necessary to mention PAN in all documents having to most financial transactions.
Starting a Business
Tax Deductions-One of the important reasons to get a PAN card is for the objective of taxation.If the entity or person has not interlinked the PAN number with the bank account, and the annual interest earnings on savings deposits is higher than Rs. 10,000/- then the bank would reduce 30% TDS instead of 10%.
Purchase and sale of property
This provides a benefit to enter into any transaction in relation to sales and purchase of property. It is required to be quoted in the deed while doing the same. In the case of purchasing of property, the PAN details of the buyer as well as the seller have to be recorded on the sales deed and in any other such documentation for the sale to be absolute.
To open a demat account:
Starting a Business-In order to incorporate a business, a company or any other entity necessarily needs to have a PAN registered in the name of its entity.Tax Registration Number (TRN) is required for a business which is carried only if the entity has a PAN.
For Banker’s cheque and Pay order
Purchase and sale of property-One of the best benefits of PAN card is that it is accepted in formalities involved during buying or selling immovable assets. A PAN card is necessary for a transaction valued Rs. 10 lakhs or more.