PAN Card details, importance and uses

PAN Card details, importance and uses

From 1 January 2005 it is necessary to have a PAN card number with any type of transactions or challan, along with it, and also necessary to enter PAN card information along with any financial documents or transactions. PAN card is play a main roll as a important ID card for opening an account with any bank, withdrawing or depositing funds or for any kind of financial transaction. It is unique, national and permanent and there is no change in the change of city or state.

What is PAN Card:---
 PAN card is a unique identity card called Permanent account number, which is very important in any kind of financial transaction. The PAN card has an alphanumeric 10 digit number, issued by the Income Tax Department as a laminated card. This process comes under the Central Board of Direct Taxes (CBDT). PAN card is an important card. An example of a PAN is AACGS3405E.

PAN Card details,importance and uses

Meaning of PAN Card number:---
The PAN card has a 10 digit alphanumeric number, in which each digit has a mean.The typical equal number found in the PAN card is the initial 5 letter alphabets, the next 4 letters numeric and the last letter alphabet.
In the first 5 alphabets, the first 3 contain any alphabets between A and Z.
The fourth alphabet is decided according to the rules as follows.
  • C stands for company,
  • H represents Hindu Undivided Family, 
  • F stands for partnership firm, 
  • A is for association of persons, 
  • T stands for trust, 
  • B for body of individuals, 
  • L represents local authority, 
  • J means artificial juridical person,
  • G stands for government
The fifth alphabet is the fast alphabet of your surname or last name.The next four characters are sequential numbers between 0001 to 9999.The last and tenth character in the PAN is an alphabetic check digit for security.

The importance of PAN card:---
 In view of the increasing business in today's time, PAN card is an important ID. PAN Card  issued by the Income Tax Department. The income tax department monitors the money transactions by every Indian citizen through the PAN card.PAN cards are beneficial identity cards for tax payers, it also avoids tax related problems. It can be installed anywhere in India as an identity proof.

PAN Card details,importance and uses

The Uses of PAN Card:---
PAN card number is compulsory for any transaction, the Income Tax Department has made it mandatory at some of these places, such as opening an account in a bank, depositing cash in bank accounts, opening of demat accounts, land property transactions, transactions in securities , use as identification.

The usage of PAN card is as follows:--

  • For transactions in excess of 50,000 
  • To buy or sell a vehicle
  • To convert your Indian currency into foreign currency
  • To open a new bank account
  • To buy or sell property
  •  For new telephone connection
  •  For buying any sort of jewellery that is valued at over Rs. 5, 00, 000
  • Valid proof of identity, and proof of age anywhere in the country etc.
>>Read more
>>Everything you need to know about Aadhaar card, a unique identity for every Indian citizen

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