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Thursday, 8 October 2015

Why Should One Fill And Submit PAN CARD FORM - Importance and Uses Of PAN Card

Introduced as one of the significant ways for identifying a particular person from the view of taxation, the PAN card is indeed used for various other things. Most of us simply apply for the PAN card, fill in the PAN card form and submit it. There are many people who blindly fill and pay the fee without knowing on why the PAN card is considered so much important in India.

What is PAN Card

The PAN card is a permanent account number. This is a ten digit alphanumeric number which is given by the IT (Income Tax) department under the supervision of the CBDT (Central Board of Direct Tax). Basically, this is one of the unique numbers which is given to individuals. It is very much mandatory from the view point of taxation and almost all individuals need to have one.

The basic motive or purpose of having a PAN Card is to keep track of the financial transactions done by various individuals. This is done in order to keep tab on the illegal money laundering and to avoid any kind of means of tax exemptions. Now apart from filling the information on the IT form and providing the details of the financial transaction, PAN card is required for various other reasons too.

Reasons for filling the filling the PAN card form and having a PAN Card

The following are the basic reason on why one needs to have a PAN card

• IT Returns

The major and common purpose of having a PAN Card is to file the Income Tax returns.

• ID Proof

The PAN card is considered and accepted as one of the valid ID proofs in various cases. Even for non-government and government  avenues, one would need ID proof like ration card, passport, voters ID, electricity and gas connection, etc.

• Work

The company or firm in which your working would require the PAN card details for filling the IT returns. At the time of joining you would have submitted your PAN card details which the employers must have noted down to deduct taxes or other TDS and professional taxes.

• Bank Account

For opening a bank account, you would need the PAN card details. This is because, it is important for the banks to keep tab on the high amount of cash transactions and report them on periodic basis to the RBI. This is one of the norms commissioned by the RBI.

•Telephone Connection

While there are certain cellular services who accept the alternative government issued identity proof, but the government run operators like BSNL and MTNL compulsory needs the details of the PAN card.

• Foreign Currency Exchange

You would need to furnish the details of your PAN card while doing foreign travels. During the foreign currency exchange you would have to submit a copy of the PAN card.

• Hotel Payments

Sometimes when you are making payments which are more than Rs. 25,000 at restaurants and hotels, you would need to quote the PAN card number. 

Therefore, the above given are some of the situations where PAN card is necessary.


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