What is the benefit of PAN card?

What is the benefit of PAN card?

Benefits of Having a PAN Card

• IT Returns Filing. All individuals and entities who are eligible for Income tax are expected to file their IT returns.
• Identity Proof.
• Tax Deductions.
• Claiming Income Tax Refund.
• Starting a Business.
• Opening a Bank Account.
• Opening Demat Account.
• Purchase & Sale of Immovable Assets.

What is PAN card and why it’s important?

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.

What is the use of PAN card for students?

An individual can use it as proof of identity to buy a vehicle to get a loan. Usually, a PAN card is applied by a person who is above the age of 18, but a student can also apply for a PAN card. PAN cards can be applied both offline and online.

Is PAN card necessary for bank?

PAN card is compulsory and is required for doing most financial transactions. The I-T department has made it mandatory to link your bank account with PAN. The main reason for this is that your income tax refunds will be credited directly to your bank account.

Who is eligible for 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. There is no maximum age limit for application of PAN card. You can be of any age and still apply for a PAN card.

Is PAN card linked to bank account?

You visit the bank branch in which you have an account. Obtain a KYC (know your customer) application form and fill in your PAN details for updating with your bank account. You are required to submit a copy of your PAN card. The bank will verify your details and will link your PAN with your bank account number.

Where is PAN card used?

PAN Card is important for taxpayers as it is necessary for all financial transactions and is used to track the inflow and outflow of your money. It is important when paying income tax, receiving tax refunds, and receiving communication from the Income Tax Department.

Do I need a PAN card if I am a student?

The government of India has made it mandatory for all the individuals to possess a PAN card that includes a PAN card for students as well. This can act as an identity proof and can also be used for taking education loan for the students to further study domestic or abroad.

Is PAN card required for cash withdrawal?

Having a PAN card is mandatory for opening a bank account, cash transactions over Rs 50,000 and buying mutual funds or shares.

When pan is made mandatory?

With effect from 1 January 2016, you would have to furnish your Permanent Account Number (PAN) for all transactions above Rs 2 lakhs, irrespective of the mode of payment adopted.

What age is required for PAN card?

18 years
Minors: The minimum age to apply for a PAN card is 18 years. However, parents or guardians of individuals below 18 can also apply for PAN on their behalf.

What is the procedure to get PAN card?

You have to follow few simple basic steps to get your PAN card: Process is same for New PAN card, Duplicate PAN card, updation in PAN details. STEP 1: Fill your PAN application form Online. STEP 2: Make payment online. STEP 3: Print your application form. STEP 4: Paste 2 photo, sign, attach documents and post to us.

What is the purpose of a PAN card?

The main purpose of a PAN card is to avoid the dodging of tax payment. Once this card is made, it will permanently remain with you and will not be affected by any changes. The easiest way to apply PAN card is through an online portal. A PAN card serves various purposes like:

What are the documents required for PAN card?

Documents Required. The list of documents that are required to submit along with the PAN card application are: Two passports sized photographs of the applicant. Identity proof like a copy of passport, a copy of national identity duly attested by the Indian embassy/consulate/high commission.

How do you apply for PAN card?

Follow these simple steps to apply PAN Card online: Step 1: Fill up the application form on the official NSDL website to apply PAN card online. Step 2: Fill Form 49A online. Step 3: Payment for PAN card application. Processing Fee –. You can make the payment in either of these ways –. Notes –. Step 4: Save and Print the Acknowledgement.