What is a Permanent Account Number?
PAN or Permanent Account Number is a 10 digit alpha-numeric identity issued by the Income Tax Department of India. It is a unique account number allocated by the Income Tax Department, which is used to track and manage all the Income Tax assessee in India.
Although the PAN card application is voluntary, it must be obtain before engaging in certain transactions. For entering into a financial transaction exceeding a specified amount, quoting PAN number is mandatory.
Requirements of Permanent Account Number
For opening of Bank Accounts
Every individual or business entrepreneur requires to open a savings/current bank account, needs to submit some specified KYC documents among which Permanent Account Number is the most essential document.
For Filing of ITR
For filing of individual’s or businesses ITR, quoting of PAN (Permanent Account Number) is mandatory. All the information filed is associate with PAN for faster assessment and processing of ITR.
For Use of Identity Card
Pan Card is accepted as ID proof for every individual and all the way to the businesses. From opening of bank account to Government registration, PAN of individual or business is a primary requirement.
PAN in specified cases
Government has specified certain transactions where quotation of Permanent Account Number (PAN) is mandatory. Amount is specified for property transfer, bank deposit, payment of bills and more.
For TDS and TCS transactions
Every person, deducting or collecting tax at source must mention own PAN and also the PAN of deductee. By quoting a PAN, the tax credit will be associated with concerned person’s account (Form No. 26AS).
For DSC Application
Quoting of PAN is mandatory for individual applying for a Digital Signature Certificate. PAN is essential document while applying for the application of Digital Signature Certificate.