A PAN Card (Permanent Account Number) is a 10-character alphanumeric identifier issued by the Income Tax Department of India, crucial for tracking financial transactions and filing taxes. Here's everything you need to know about its uses, importance, application process, and more.

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Key Details About PAN Card

| Aspect | Details |
|-----------------------|-----------------------------------------------|
| Issuing Authority | Income Tax Department of India |
| Validity | Lifetime |
| Customer Care Number | 020-27218080 |
| Official Website | PAN |

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Why Is a PAN Card Important?

• Mandatory for Filing Taxes

• PAN ensures a transparent and structured tax system.

• Proof of Identity

• Acts as valid ID proof for individuals and businesses.

• Facilitates Financial Transactions

• Required for opening bank accounts, applying for credit cards, investing in mutual funds, and more.

• Business Registration

• Necessary for companies to file taxes and conduct financial operations.

• Regulates Large Transactions

• Monitored by the government to curb tax evasion.

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Who Should Have a PAN Card?

• Individuals with a taxable income in India.
• Businesses or entities earning above5 lakh annually.
• NRIs engaged in financial transactions exceeding2.5 lakh.
• Importers/exporters requiring an Import Export Code.
• Charitable trusts filing tax returns under Section 139(4A).

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Transactions Where PAN Is Mandatory

• Opening Bank or Demat Accounts.
• Deposits Exceeding50,000.
• Purchases of Real Estate (Above10 lakh).
• Investments in Mutual Funds, Bonds, or Debentures (Over50,000).
• Cash Payments Above50,000 (e.g., foreign travel, hotel bills).

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Types of PAN Cards

• Individual
• Hindu Undivided Family (HUF)
• Firms/Partnerships (LLP)
• Company
• Foreigners or NRIs
• Society
• Trust

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How to Apply for a PAN Card?

• Online
• Visit NSDL or Income Tax e-Filing Portal.

• Offline:

• Submit a filled form at designated PAN Service Centers.

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Lost PAN CardHow to Get a Duplicate?

• Visit the NSDL or UTIITSL portal.
• Select “Reprint PAN Card” under corrections.
• Submit identity proof and FIR (if required).

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Benefits of Having a PAN Card

• Simplifies Taxation

• Facilitates tax filing, refunds, and accountability.

• Avoids High TDS

• Prevents 30% flat tax deduction for non-PAN holders.

• Transparency in Financial Transactions

• Tracks high-value transactions to curb tax evasion.

• Mandatory for Property and Asset Purchases

• Required for buying real estate or vehicles.

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FAQs

• Can I apply for a PAN Card online?

• Yes, via NSDL or UTIITSL portals.

• What if I have multiple PANs?

• It's illegal. Surrender extra PANs to avoid penalties.

• Is there a separate process for NRIs?

• NRIs can apply using Form 49AA with additional documents like a passport.

• What is the full form of PAN?

• Permanent Account Number.
  

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