We all know how important Pan Card has become in today’s time. Without a Pan Card, you can not only file income tax returns but also face problems in many types of financial transactions. So in this post, we will know what is Pan Card and what is useful?
What is a PAN card?
Pan Card means Permanent Account Number. This is an alphanumeric number of 10 digits provided to all taxpayers of the country by the Income Tax Department. Like an Aadhaar card for a person’s identity, a Voter card for the right to vote is likewise a “Pan Card” for his financial identity. So PAN is an electronic system through which all tax-related information for a person/company is recorded against a PAN number.
What is the use of Pan Card?
The Pan Card issued by the Income Tax Department has become very important today, without it, many of your work may get stuck, below you have been told about the areas where Pan Card is used:
- Pan Card is critical to file an income tax return. Any person or entity who is eligible for income tax needs a PAN to file an IT return.
- If you want to convert Indian currency into foreign currency and foreign currency into Indian cash, you have to provide your Pan Card details to Exchange Bureau, Bank, or Institution. So this is also useful in foreign exchange.
- Pan Card has also been required to open a new bank account. Then, whether the bank is public, private, or cooperative, you will have to submit your PAN there.
- Now if you apply for a debit or credit card in any bank, then the Pan Card has been made mandatory there too.
- For taking any loan from banks, you will have to give your Pan Card details.
- If you want to invest your money in Fixed Deposit (FD) and the amount is above 50,000, you will still have to provide your PAN details to the bank.
- Now you need Pan Card Proof to buy, sell, or rent property in India.
- If you make cash deposits of more than 50,000, you will still have to give your PAN details.
- Now if you get a new telephone connection, then you must have a Pan Card.
How to Get Pan Card
You have already realized that why a Pan Card is important? So now let us know how to apply for a PAN card? If you have a debit or credit card or use any online payment system, you can apply for PAN by visiting the official website of NSDL online.
How do you apply for this post online PAN card? Will be able to do these tasks easily by reading. Apart from this, you can also get it made by going to your nearest NSDL PAN Card Center. Applicants are charged Rs 110 for this work. Some important documents have to be submitted, such as proof of identity, proof of date of birth, and proof of address.
Meaning of 10 Digit PAN Number
We told you that your PAN card is a ten-digit alphanumeric number. But these numbers can tell a lot about a pan holder. Let us see what these numbers mean.
- The first three characters can be anything from A to Z, such as – ASC or ART.
- The fourth character is similar to most of the PAN holders. “P” means, Person. If the fourth character is A, B, C, F, G, H, L, J, and T, it can also represent an institution or firm.
- The fifth character is the first letter of the surname or last name of the PAN holder. If someone’s name is Ajay Bisht, the fifth character of his PAN number will be “B”.
- The next four characters, i.e. six, seven, eight, and nine, can be any random number.
- The tenth and last character is a formula consisting of the remaining nine characters generated by the Income Tax Department.
So in this post, you have learned what a Pan Card is and what it works for? Under which we told you what is a PAN card? What is the work of PAN and how can we get it made. Hopefully, by reading this post, you will have become aware of the PAN card. If there is any suggestion or question, then please comment and tell. If the information seems informative, then do not forget to share it on your social media.