What is PAN?
Permanent Account Number (PAN) is unique code that acts as an identification for Indian citizens, particularly those who pay Income Tax. It is also issued to foreign investors, hence it is not acceptable as a Identity Proof of Indian citizenship. It is issued by National Securities Depository Limited (NSDL), Indian Income Tax Department under Central Board for Direct Taxes (CBDT).
The PAN is necessary for financial transactions. High-value transactions, such as buying a house or Property, Receiving TAX payable Salary etc.
Duration of Issuing PAN.
New PAN card takes approximately 15 to 20 working days. Correction of PAN card take 30 to 40 working days; however this may vary depending on the authorities.
Why PAN is Required ?
PAN incorporates finding of false exchanges, diminish tax avoidance, straight forwardness in exchanges between purchaser and Seller.
PAN is required for the bulky transactions of the currency e.g. Billing more than Fifty Thousand Rupees.
Exchanging currency at Money Exchanging Kiosk requires PAN.
Depositing more than Fifty Thousand Rupees in a single day, requires PAN.
Duplicate of PAN is required to Sale or buy motor vehicles having more than two wheels (excluding side detachable car attached to two wheeler), while Buying or Selling any property it is mandatory to have PAN card.
Documents Required while Applying for a PAN.
Voter Identity Card
Ration Card having photograph of the applicant.
Certificate of Identity in original signed by a Gazetted Officer.
AADHAAR Card issued by the Unique Identification Authority of India.
Central Government Health Scheme Card.
Bank Certificate in original on letter head from the branch.
AADHAAR Card is mostly preferred applying for a PAN .