What is PAN card and why is it used?

What is pan card?

A PAN (Permanent Account Number) card is a unique 10-character alphanumeric identification number issued by the Indian Income Tax Department to individuals, entities, and organizations. The primary purpose of the PAN card is to track the financial transactions of taxpayers and prevent tax evasion.

What is pan card used for?

The PAN card is an essential document for various financial transactions in India, such as opening a bank account, investing in securities, and paying income tax. Here are some of the reasons why PAN card is used for:

Filing Income Tax Returns: PAN card is mandatory for all taxpayers, and it is required to file income tax returns. The card helps the government keep track of an individual’s tax payments.
Banking Transactions: PAN card is required to open a bank account in India. The card is also necessary for making large cash deposits or withdrawals, applying for loans or credit cards, and investing in financial instruments such as fixed deposits, mutual funds, and shares.
Government Services: PAN card is also necessary for availing various government services, such as applying for a passport, applying for a loan from the government, or getting a driving license.
Purchase or Sale of Property: PAN card is required for buying or selling property exceeding a certain amount.
Miscellaneous: PAN card can also be used as proof of identity and address for various other purposes, such as buying a vehicle or applying for a phone connection.

In summary, PAN card is a crucial document for every Indian citizen, and its usage is essential for carrying out various financial and government-related transactions.