Everything You Must Know About PAN Card As Issued By IT Department

Income Tax (IT) Department, India has been making a number of improvements in its services as of late, especially in regard to digitization. To contribute its fair share to the same, the department is starting the online service of issuing instant e-PAN (electronic Permanent Account Number) quite soon, reports the Times of India.

Up until now, the applicants receive their PAN card around 15 days after they fill up a required form and submit it along with all relevant documents. The issuing of instant e-PAN means the recipients will not have to wait to get their PAN card.

The instant e-PAN will be issued on the basis of your Aadhaar details. Therefore, you need to provide only your basic details such as your name and phone number, etc. and your Aadhaar details. Then, you need to get these verified by using an OTP (One-Time Password) on your registered (with Aadhaar) mobile number. The rest of the details will be picked automatically from your Aadhaar Card such as your father’s name and your date of birth. You don’t need to submit or upload any physical document in that case, according to the report.

Once the department verifies your Aadhaar details via the OTP, you will receive a digitally signed e-PAN instantly which contains a QR-code. This code has your demographic data apart from your photograph. As per an official’s statement in the report, the data in the QR-code will be encrypted as a security measure so as not to give any chance to forgery or digital photoshopping.

The issuing will be done free of cost and the online facility will save a great deal of your time. Besides, you don’t need to visit their office in person. In the words of the official provided to TOI

“The move is part of greater digitisation of income tax services and aimed at providing the facility without anyone having to visit any office.”

The department ran an eight-day pilot test to examine the proposed e-PAN service. Now, after its successful outputs, they are going to roll out the service nationwide in the upcoming few weeks.

Who Can Apply For PAN Card

  • Individuals including both majors and minors
  • Partnership Firm
  • Limited Liability Partnership
  • Trusts
  • Companies
  • Local Authorities
  • Registered Association of Persons
  • Artificial Judicial Person
  • NRIs, OCIs (Overseas Citizens of India), PIOs (Persons of Indian Origin), and foreigners falling under the purview of Income Tax Act of 1961

Importance Of PAN Card – Why You Need One

While we have so many essential identity documents in India such as Aadhaar Card and Passport, the importance of PAN Card is irreplaceable. There are so many scenarios in which the linking of PAN is essential.

Initially, the motive behind issuing this card was to prevent tax invasion as your PAN, linking all your financial transactions, provides a thorough record to the IT department for tax transactions. However, now PAN is used in other ways as well.

IT Returns Filing

The primary reason for applying for a PAN is to file Income Tax returns. Those who have taxable income must own a PAN card.

Applying for a credit or debit card

To apply for a credit or debit card, you need to provide your PAN to the bank or financial institution in question.

Opening a bank account

To open a new account in private, co-operative, or public bank, PAN is required.

Property

While buying, renting, or selling a property, you need to submit your PAN details as well as that of the person who you’re doing the property deal.

Making investments

You need a PAN card if you want to make investments in securities (such as mutual funds, equities, bonds, debentures) exceeding Rs. 50,000.

Proof of Identity

Your PAN card is one of the major documents that are accepted as your identity proof in India. It is used as an identity proof of your age, also. If you want to apply for passport, driving license, voter ID, electricity connection, etc., you need your PAN details.

Purchase of jewelry

For buying any type of statement jewelry amounting to more than Rs. 5,00,000, you need to furnish your PAN details.

Buying or selling a motor vehicle

You need PAN if you want to buy or sell a motor vehicle that exceeds the amount worth Rs. 5,00,000.

Foreign Exchange

To convert your Indian currency into a foreign one while you’re traveling abroad, you must supply your PAN card to the bank or money exchange bureau where you’ve headed to convert the money.

Fixed Deposits

You need to submit your PAN info to the concerned bank if you’re applying for a Fixed Deposit (FD) worth Rs. 50,000 and above.

Insurance Payments

You need to supply your PAN information when making an insurance payment amounting to over Rs. 50,000 a year.

Cash Deposits

RBI has made it mandatory for all banks to require the Pan details of the person who is making cash deposits more than worth Rs. 50,000 at a time.

Loans

Applying for any type of loan requires you to provide your PAN information to the bank or other lending institution/individual in question.

Telephone Connections

For those applying for a new landline phone or mobile phone connection, submitting your Pan details is necessary to the concerned operators or service providers.

What if you don’t have a PAN card yet?

In case you don’t have a PAN card yet, you can easily apply it online on the IT department’s official website without making further delays. Until then the Income Tax Department has also introduced a new rule in September this year which states that you can use your Aadhaar card details interchangeably wherever you need your PAN number.

Besides, you can fill in Form 60. Under the Income Tax Rules, 1962, this form states that you don’t have a PAN card and that your income level is below taxable income as per the IT department.