If you don’t know anything about PAN card than you are on right page. here we share all information that you must know about PAN card.
What Is Pan Card? Basic Information About PAN Card
PAN is short form of Permanent Account Number. So people generally use word PAN for any conversation about their permanent account number. PAN card id used for identifying various taxpayers in the country India. it is unique number assigned to Indians mostly for those who pay tax.
The Main Idea Behind Introduce PAN number
PAN is similar number SSN is that used in US. SSN is stand for Social Security Number. SSN is a unique nine-digit number issued to all citizens of the US whether they were permanent or temporary. in US main idea behind SSN is to track individuals for their security purpose, but now SSN number is use for primary identification number for taxation processes.
Why PAN Card Introduce In India?
Earlier when PAN card was not introduced, there was a GIR number assigned to every tax payers. The GIR number was allotted by the Assessing Officer to a tax payer and it also should include information of Assessing Officer. A GIR was unique for only in that particular area, somehow it is not unique across all over India so this resulting in chances of miscalculation during assessment of tax.
Structure and Content of PAN card
many of you have a question that “How PAN Card Looks Like?” So PAN card basically look like bellow image and it is consist of following listed content.
PAN Card Structure and Content for an individual taxpayer:
- Permanent Account Number (PAN)
- Full name
- Name of father
- Date of Birth
PAN Card Structure and Content for an incorporation taxpayer:
- Permanent Account Number
- Full name
- Date of incorporation
All information listed here is firstly check against 49A form that you filled when you apply for PAN card. Since you might observe that address is not printed on PAN card this is due to changes in address with various frequencies of time. Also, for businesses, organizations, HUFs etc.
It is not possible to print all information on PAN card. So PAN card issued to directors, owners or partners of company on a individual basis.
Validity For PAN Card
Many of you have a question: for how much time PAN Card is valid? Should we have to re-new it after several years? Then answer, PAN is valid for life time. this is because of PAN is unaffected by your change of address.
What Happens If You Don’t Have a PAN Card?
If you are falling under categories whose income in taxable bracket and you don’t have PAN card. then you have to pay large penalty. not have PAN card results in:
- You have to pay flat 30% tax on your all income.
- Not having PAN card restrict you to buy a motor, immovable properties worth over 10 lack.
- You are unable to open an account with any bank.
So we have tried our best to give all the necessary details you should know about PAN card.
If you still have any question then feel free to ask in comment section. we are here to serve you. 🙂