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Thursday, 8 October 2015

What Is Pan Card- A brief Introduction and Importance of Pan Card


PAN Stands for Permanent Account Number.  It has the number in the form of the code. The code is ten digit alpha numeric.  This document acts as a very crucial identity proof. It is a judicial proof of your income, if you are an Indian. An Indian must acquire this card if his income is taxable.  The term “Taxable Income” means that income identified by government, which falls under the prey of tax, that is, payable to the government of the country. Thereby, Pan Card is an imperative document to carry out all your financial transactions.

Issue of PAN Cards

The PAN Card is issued to all the Indian nationalities to bring out uniformity in process of tax liability. With the help of PAN Card, a strict vigil can be kept on all the nationals to perform all the financial transaction within permissible limits. All centralized institutions like banks, employers, etc. demand your PAN card before commencing any financial relationship with the other party. It is a must addition to support your financial verification.



Uniqueness of PAN Cards

The PAN Card is a separate and a unique identity given to individuals. It is different and unique to all the individuals. If a minor is asked to present his/ her PAN Card, the card of the registered guardian is suffice. The Pan Card is issued only to adults, who are eighteen years or above.  The PAN Card issued, also has a photograph of the card holder, which further make it unique. But the card doesn’t have the address; thereby if the address of the card holder changes; it doesn’t have any impact on the holder of the PAN card nor does the card.

Benefits

PAN card is issued because of the Income Tax Act. Pan card becomes inevitable when we have to file any Income Tax Return. We cannot file our return without the PAN No. Moreover, our interactions with Income Tax Department will become impossible without the possession of this important document.  This can also have adverse impact on the individuals legal financial standing as paying tax to the government is also mandatory under income tax Act.

Challenges

The government has taken many steps to make the process of obtaining PAN Card simpler and accessible to everyone, but this has adverse impact too. Some individuals possess more than one PAN Card because of anti-social elements. We as nationals of India must try to prohibit this act.  Legally, if anyone is caught possessing more than one PAN Card will have to pay a fine of INR 10000.
Therefore, PAN Card is one of the most important document for Indian nationals. The unique alpha numeric number has its own significance. These days Pan Card can be obtained online without much hassle. However, there is strict vigil on the entire process of issuing PAN Card by the government and income Tax department.  Last but not the least, we must cease the duplication of PAN Cards as it can adversely affect the development of the nation if financial transactions remain unchecked by the government.



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