Quick Answer: Why Is PAN Card Required?

How many types of PAN card are there?

There are two types of PAN applications: Application for allotment of PAN: This application should be used when the applicant has never applied for a PAN or does not have PAN allotted to him.

FORM 49AA: – To be filled by foreign citizens..

How can I get PAN card in 2 days?

How To Get PAN Card Within Two Days?Step 1: Log in to NSDL website. Visit the NSDL website (https://nsdl.co.in/) and select the appropriate form from the options provided. … Step 2: Select the type of form. … Step 3: How to submit the application for PAN? … Step 4: Track the status of your application. … Step 5: Get the PAN card within 48 hours.

What is PAN number?

permanent account numberPAN, or permanent account number, is a unique 10-digit alphanumeric identity allotted to each taxpayer by the Income Tax Department under the supervision of the Central Board of Direct Taxes. It also serves as an identity proof.

Can under 18 get PAN card?

Yes, individuals can apply for PAN Card for a minor child without any hassle. Minor is a person who is below the age of 18 years. However, the minor cannot apply for a pan card directly. Parents, guardians or representative assessee’s of the minor can apply for PAN card.

Why PAN number is required?

PAN number is unique to every PAN card holder. It also serves as an identity proof. … The PAN is required for most of of financial transactions such as opening a bank account, getting taxable salary or professional fees, sale or purchase of assets above specified limits etc.; especially high-value transactions.

Is PAN card necessary for students?

Government of India has made it mandatory for all the individuals to possess PAN card that includes PAN card for students as well. … As PAN card can be possessed by both the adults and minors, PAN card for students can act as alternative identity proof of school identification card.

What is Pan card age?

18 yearsThe minimum age limit for applying for a PAN card is 18 years. Can a Student Apply for a PAN Card? Students can apply for a PAN card as long as they are above 18 years of age. In case you are a minor (younger than 18 years old), your parents can apply for the PAN card on your behalf.

What are the disadvantages of PAN card?

Biggest disadvantage would be once you are alloted a PAN, you cannot escape from Income Tax department. If you do transaction frequently without any proof of income then that is to be treated as income of your wife.

Is PAN card necessary for Bank?

New Account in a Bank or Post Office – It is mandatory for every individual to provide a self-attested copy of their PAN cards to open an account in a bank or post office. However, this rule is not applicable to Basic Savings Bank Deposit Accounts (BSBDA), which includes zero balance savings accounts such as Jan Dhan.

Do we need PAN card to deposit money?

Importance of PAN card 1. Quoting of PAN is also required for setting up a time deposit – or fixed deposit – exceeding Rs 50,000 with a financial institution. Also, a cash deposit exceeding Rs 50,000 in a post office savings account requires PAN, according to the taxman.

How can I get free PAN card?

How to get free, instant PAN card using AadhaarOpen the e-filing website of the Income Tax Department.Click on the tab ‘Get New PAN’.Enter your 12-digit Aadhaar number.Submit the OTP generated on the Aadhaar registered mobile number.A 15-digit acknowledgment number will be generated.Enter the other details asked for in the user info.More items…•

Why is PAN card necessary for bank account?

PAN card is a compulsory Government document which is needed in most of the financial transactions. The Income Tax Department made it mandatory to link bank account with PAN. The main reason for linking PAN card with a bank account is that in case of income tax refunds, it will be credited easily to the bank account.

What is Pan card required for?

Tax Identity PAN is mandatory for financial transactions such as receiving taxable salary or professional fees, sale or purchase of assets above specified limits, buy mutual funds and more.

Where is PAN card used?

The answer is the PAN card. The Permanent Account Number (PAN) card, issued by the Income tax Department, is one of the most important documents nowadays. The card was issued in order to prevent tax evasion by individuals and entities as it links all financial transactions made by a particular individual or entity.