Why Pan Card is Necessary
If you’re thinking to buy a car or property or an investment in a stock market every each one of these requires financial transactions. But there is one thing required to do all of these activities efficiently. The answer is a PAN Card. The Permanent Account Number is issued by the Income Tax Department, Government of India which is the most essential document for an individual to carry.
In recent time, PAN card has become one of the most recognized identities proof in India. It carries a 10-digit alphanumeric identity that is provided by the Income Tax Department to Individuals and entities residing both in India and abroad.A PAN card was issued to prevent tax evasion with the entities as it links all financial transactions made by an individual or an entity. In this way, all transactions are recorded for the tax purposes. It is mandatory for citizens of India as well as the NRI’s to possess a PAN card under the Tax Act of 1961.
There is the various use of PAN cards in a government office and mostly in legal work. However, a PAN card is used for Income Tax transactions records by the tax department to keep monitoring all your financial dealings.
The use of PAN card is given below:Every each one of us who are eligible for income tax which is expected to file income tax. A PAN Card is necessarily required to IT returns. Indian citizens or any resident of India, as well as NRI, comes under the purview of the Income Tax Act of 1961 are eligible to apply for a PAN card such as firm and companies falls under the tax evasion are require to have a PAN card.
IT Return Filing
All individual and entities who come under the income tax act are expected to file the IT return. A PAN number is generally taken into consideration in order to file IT Return which is only operative when PAN card is available.
Buying and selling of a motor vehicle
If you wish to buy a motor vehicle which cost more than Rs 5, 00,000 he/she has to provide the PAN details while conducting the transaction.
Applying for a credit or debit card
It’s essential to furnish the details of the PAN card when applying for a credit or debit card at any financial institutions.
Purchase of jewelry
If you’re buying jewelry items worth of Rs 5, 00,000 you may need to provide the PAN details at the time of purchase.
Securities and bond in government or public sector are regarded as a good way to build your wealth. If you’re considering buying securities you have to furnish complete details along with the PAN Card number.
If you are making cash deposits worth of Rs 50,000 at a time, it is mandatory to submit PAN details as well. The prescribed norms are made by RBI which direct banks to report if lump sum money or cash deposits are made to prevent money laundering.
As per the Income Tax Act, PAN card details have to furnish while making the insurance payment exceeding more than Rs 50,000 a year.
How to Apply PAN Card Correction Application?
Sometime it may happen that PAN card details are incorrect or having errors in DOB, Name. In such situations, an applicant can apply for a New PAN card by filling a PAN correction form for change in a request through the official web portal.
The Pan Card Correction form can be obtained from the online NSDL website. The PAN application followed by a form which should be filled online by paying little fees.
The amount depends upon the communication address of the applicant within India which is Rs 110 and those of outside India Rs 1,020. The payment can either be made through the demand draft in favor of NSDL PAN Payable at Mumbai. The other methods are by using Net Banking, credit card or debit card. Upon the submission of the corrected PAN details, the applicant is given an acknowledgment form which is further printed and send to NSDL office along with supporting documents. To check the correction application status the applicant must visit the official www.trackpan.utiitsl.com where he/she has to put the acknowledgment number of the application to see the status of their application on the screen of the computer.Further, the acknowledgment form should be duly signed and affixed with 2 passport size photograph. Once the application has been processed, you’ll be issued a fresh PAN card retaining the same PAN number of the old card. so, this was all about how to apply for pan card correction. If in case you have an doubt or stuck at some step then you can connect to us via comment section below.