Don't have a PAN yet? Reasons why you'd need one
Permanent Account Number (PAN) is a unique, ten-digit alphanumeric identity issued by the Income Tax Department to all taxpayers in India. PAN facilitates instrumental transactions such as tax payments, entering certain financial contracts, and filing I-T returns. It also serves as a government-verified proof of identity. If you do not have a PAN card yet, here are some reasons why you may need one.
PAN is necessary for starting a time deposit or fixed deposit account with any financial institution, exceeding the value of Rs. 50,000. PAN is also required for cash deposits worth more than Rs. 50,000 in a post office savings account, or bank account. One also needs to furnish PAN card credentials for selling or purchasing immovable property valued above Rs. 10 lakh.
For making payment of hotel/restaurant bills amounting above Rs. 50,000, in one go, you will have to furnish PAN. PAN is also mandatory for buying of a bank draft, pay order, or banker's cheque for an amount of Rs. 50,000 or more, in a day. One also needs to quote their PAN while applying for a debit or credit card.
PAN is mandatory for making payment of Rs. 1,00,000 or more, for the purpose of acquiring the shares, debentures, or bonds of a company or institution. Furthermore, payment of Rs. 50,000 or beyond, in a year, for life insurance premium requires furnishing of PAN details. The document is also needed for opening demat account with the Securities and Exchange Board of India (SEBI).
Meanwhile, here's how you can apply for a PAN card: First off, visit the official online portal of NSDL for PAN application. Select the application type and category. Enter the required applicant details, and click on 'Submit' button. Next, upload the required documents. Finally, make the application fee payment. After successful submission of the form, you will get an acknowledgement number.
Documents required to apply for PAN card online are: 1) a proof of identity such as Aadhaar card/Ration card/Passport, 2) one proof of address, such as DL (Driving License)/Voter's ID card/Passport, and 3) a DoB proof such as Matriculation certificate/Birth Certificate/Aadhaar card/Passport, etc.