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.
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.
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