What Is PAN Card?: Benefits, Requirements and More

The full name of the PAN card is Permanent Account Number. This is an identification card that is used for all types of financial transactions. This is a unique card that contains 10 alphanumeric characters and is given to us by the Income Tax Department. A PAN card is issued in the form of a laminated card under the Indian Income Tax Act, of 1961.

Everyone knows why a PAN card is important in today’s times. It is used everywhere, whether it is opening a bank account, paying income tax, making a credit card, or creating an online wallet account. That is why in today’s post we will know what a PAN card is and what the purpose of a PAN card is. 

Without this card, no work related to online finance can be done.

After demonetization, on the advice of the Indian Government, the Reserve Bank of India has made it mandatory for all account holders to link it with their Aadhaar cards.

I will tell you in simple language why it is important and how to make it. With this, you will easily understand it. Along with this, we will understand its benefits.

So without any delay, let us know what this PAN card is and what its importance is in our country.

Introduction To PAN Card

A PAN card is issued under the supervision of the Central Board of Direct Taxes (CBDT).

A PAN card is very useful for us as identification proof. Through this, the Indian government gets complete information about income tax.

A PAN card is used for all types of financial transactions. It is used for paying income tax, opening a new bank account, receiving taxable salary, buying and selling property, etc.

It works like an identity card, but it does not contain an address, hence, it is not used as an address proof. It looks exactly the size of a debit/credit card.

Your name, father’s name, date of birth, and PAN number are recorded in it. Along with this, a photo and signature also remain in it.

 What Is a PAN card called?

This is called the Permanent Account Number in English. That means the full form of the word PAN is Permanent Account Number.

This is called the Permanent Account Number.

PAN Card Structure

As we have already talked about, the PAN card is 10 characters long and has an alphanumeric unique character.

Every PAN card number is different and unique from each other. It contains a lot of information. Let us understand this with an example.

This number is something like this AAWA1234J

• In this, the first 5 letters are the English alphabet, after that there are 4 numerical numbers and in the last one again there is the English alphabet.
• In the first 5 alphabets, there can be any letter between the first 3 alphabets (AZ).
• The 4th alphabet is chosen as per the list given below.

1. For Company C
2. For any person:
3. Hindi for undivided family (HUF) – H
4. For Firm – F
5. For Association of Persons (AOP):
6. To denote about Trust – T
7. For Individual (BOI): B
8. Local Authority: L
9. Artificial Jurisdiction Person (J)
10. Government: G

• The 5th alphabet is the first letter of the surname or last name of any person, organization, or company.
• After this, the 4 numerical digits of 6–9 characters are taken from 0001 to 9999.
• The last digit is an alphabet, which is obtained by applying a formula to the previous 9 characters.

Benefits Of PAN Card

Now we will talk further about its benefits:

1. This card protects you from problems and irregularities in income tax.
2. The card issued by the Indian government is valid everywhere. It is recognized everywhere, in every government office, bus, and train.
3. That is why you can give it as ID proof to any government or private institution.
4. Apart from full-time, by showing this in part time job, you get paid easily.
5. If you do a temporary job or part-time work somewhere, then you can claim TDS at the end of the year.
6. For transactions of more than Rs 50,000.
7. With this, transactions amounting to more than Rs 50,000 can be made in the share market.
8. This is used to pay amounts greater than Rs 25,000 in a hotel.

What is a PAN card used for?

It works as an identity card for us. When someone goes to the bank to open a bank account, it is mandatory to submit the PAN card there. Without this, a bank account cannot be opened.

This provides tax information, and the government gets information about tax evasion.

Apart from this, if someone opens his account in many banks and feels that by keeping money in different accounts he will be saved from the eyes of the government, then the PAN card plays the most important role in this.

Due to this, the government comes to know how much total property is owned by him or any person.

Why Is a PAN card necessary?

A permanent account number is important for every citizen. There are many such works that are not possible without it.

1. In a way, it works as an identity card for us. It also contains our name, father’s name, and photo, due to which it is valid for ID proof.
2. Use it to pay income tax. If this is not the case, then we will not know what the correct amount of tax is. They record all the transactions made by a person through a unique number. This helps in preventing tax evasion.
3. This is even more important for a working person. When any transaction of high value has to be done, it is necessary to provide PAN card details. A transaction cannot be done without it.
4. It has been made mandatory for opening new bank accounts. If you want to open an account in any bank in India, they will ask you for this.
5. This works to get a new connection for the telephone.
6. It is required for buying or selling property, and along with this, it is necessary for building a house and buying a flat.
7. This is also useful for buying a vehicle.
8. You will need this to get a debit or credit card.

How To Make a PAN Card?

There was a time when getting it built was a difficult task. But now it has become very easy. Now any common man, company, or organization can apply for this.

Even foreigners can apply and get it made for themselves.

There are two ways to get it made, or, in other words, you can get it made by applying both online and offline.

Online: To apply online, you have to fill out Form 49A by logging into the website. For this, there are websites from which they can do this work.

https://www.tin-nsdl.com/

Offline: If you want to apply for a PAN card, then for this you should go to your nearest center.

There, you fill out your form and attach the necessary documents along with it. Then, after approval, the card will come to you.

It costs you Rs 93 to make this, but after applying GST, it becomes Rs 110. There are many websites online where you can apply, but they also charge extra.

But if you apply and make it yourself, then you will have to pay the same amount as mentioned by making an online payment. For this, you must have credit, debit, or net banking.

But if you go to the PAN center and get the card made for yourself, then you have to pay there in the form of cash.

Along with this, after applying for PAN, you will be given a tracking number through which you can check the status of your card and know when you will get it.

What Are the documents required for a PAN Card?

If you are applying for yourself or a relative, then you need to know what documents are required to apply and get it made.

If you do not have these documents, then you will not be able to apply. So let us know what those documents are, without which it is not possible to apply.

Identity Proof: First of all, it is important to have an identity proof. If you have any one of the identity cards as per the list given below, then you can apply.

1. Passport
2. Voter ID card
3. Aadhar Card, UIDAI
4. Ration Card
5. Driving License
6. A photo identity card issued by Central or State Government

Address proof: The second document that is required is address proof. You can use any one of the following documents for address proof:.

1. Aadhar Card
2. Passport
3. Voter ID card
4. Driving license
5. Post Office Passbook
6. Property Registration certificate.

Birth certificate: – The third document which is necessary to apply for it is Birth birth certificate, it gives information related to our birth.

1. Aadhar Card
2. Elector’s Photo Identity Card
3. Driving license
4. Passport
5. Matriculation Certificate
6. Birth certificate issued by the municipal authority.

Latest Photographs: You will also have to submit 2 recent photographs while applying.

Friends, take a copy of all the documents and put your own signature in it. Which is also called self-attested. These

It has been made mandatory in every bank by the government of India. It is important for every citizen to have it. It has also been linked to the Aadhar card.

In Short

Friends, in today’s time, it has become very important to have every government document. And our work cannot be done without these documents. Here, you have also learned why the PAN card is important and how it is useful for us.

Along with this, you also know how to make a PAN card and what its purpose is, so that it becomes available to everyone and they do not face any problems in doing any kind of work that can be done only by having it.

You should also understand the benefits.

Through this post, you mainly learned what a PAN card is and what it is called.

I hope you liked this post. What is a PAN card?

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