Use of Permanent Account Number (PAN) Card
Permanent Account Number (PAN) is the 10 digit alphanumeric number issued by the Income Tax Department for the purpose of assessment and administration of the liability of the assessee under the Income Tax Act, 1961. This number is allocated after the application made for the same.
1) Filing of Income Tax Return.
2) Bank deposit over Rs. 50,000.
3) Any demand drafts which exceeds over Rs. 50,000.
4) For opening a Bank Account in India by any resident or non-resident Indians.
5) For opening demat or trading account for stock market transactions.
6) Purchase of any securities which amounted more than Rs. 1,00,000.
7) Travel expenses exceed Rs. 25,000.
8) Sale or Purchase of any property in India.
9) Sale or Purchase of Cars.
10) TDS return to Income Tax Department.
The main purpose of Income Tax Department to make compulsory in such transaction is to track the all the transaction of the person holding PAN Card. The reason behind to track all such transactions is to reduce or eliminate the tax evasion.
To know the PAN Details form The Income Tax Database if you cannot access in Income Tax Website by using PAN details which you have Click Here
PAN number is the like an account number for the Income Tax purpose. Any income earned by the person on which TDS is deducted, such income and TDS amount is recorded on the income tax record and can be checked on the website. The TDS deducted of any person can be monitored by the Income Tax Department by applying mandatory provisions of filing of eTDS Return by the deductor. Any person while assessing his income for Income Tax purpose should verify TDS details from the Income Tax website so that the chances of error will be less for calculation of Income. It may happen many times that having lots of transactions during the financial year, person may forget to get the TDS certificate form the deductor or the deductor may forget to communicate the TDS certificate to the deductee. In that situation the deductee can check the TDS details from the Income Tax website through the use of PAN Number.
It is also used as a valid identity proof. It contains PAN Card’s Name, Father’s Name, Date of Birth, Photograph, Signature and Unique Permanent Account Number.
The Permanent Account Number is compulsory to file Income Tax Return. While filing Income Tax return you can claim certain deduction like 80C upto Rs. 1,00,000 from your income. Such benefits can be availed if you have PAN Card.
The Permanent Account Number allotted to one person will not be the same with any person in India. So that the accurate control can be administered by the government.
The most important thing is that if any person willfully holding more than two PAN Number will be considered as an illegal act under the Income Tax Act and will be penalized by Rs. 10,000.