How to Get Pancard and Why you must get it - All About PAN Card

PAN, or permanent account number, is a unique 10-digit alphanumeric identity allotted to each taxpayer by the Income Tax Department under the supervision of the Central Board of Direct Taxes. It also serves as an identity proof. PAN is mandatory for financial transactions such as receiving taxable salary or professional fees, sale or purchase of assets above specified limits, buy mutual funds and more.

The primary objective of PAN is to use a universal identification key to track financial transactions that might have a taxable component to prevent tax evasion. The PAN number remains unaffected by change of address throughout India.

WHY GET A PAN NUMBER?

• For payment of direct taxes
• To file income tax returns
• To avoid deduction of tax at higher rate than due
• To enter into specific transaction such as:

(a) Sale or purchase of immovable property valued at Rs 5 lakh or more
(b) Sale or purchase of a vehicle other than a two wheeler
(c) Payment to hotels or restaurants an amount exceeding Rs 25,000 at any one time
(d) Payment in cash an amount exceeding Rs 25,000 in connection with travel to any foreign country
(e) Payment of an amount of Rs 50,000 or more to the Reserve Bank of India for acquiring bonds
(f) Payment of an amount of Rs 50,000 or more to a company or an institution for acquiring bonds or debentures
(g) Payment of an amount of Rs 50,000 or more to a company for acquiring shares
(h) Any mutual fund purchase
(j) Deposit exceeding Rs 50,000 with any single banking institution in 24 hours.
(k) Payment exceeding Rs 5 lakh for purchase of bullion and jewellery


WHO MUST APPLY FOR PAN?

• Anybody who earns a taxable income in India, including foreign nationals who pay taxes here
• Anybody who runs a business (be it retail, services or consultancy) that had total sales, turnover or gross receipt exceeding Rs 5 lakh in the previous financial year 

HOW TO APPLY?

1. Get the form
           
You could visit the official Web sites of the Income Tax department:
PAN Card Application and download the PAN   application form(49A).
           
2. Don't forget the photograph!
           
You will need a recent colour photograph (stamp size: 3.5 cm x 2.5   cm) to attach on the form.
           
3. Some additional information
           
You must mention the designation and code of the concerned Assessing Officer of the Income Tax department in Form 49A. You can get this from the IT PAN service centres mentioned in the Web sites listed above.
   
4. Required documents

(A) Proof of identity
Copy of,

• elector’s photo identity card ; or 
• ration card having photograph of the applicant; or 
• driving license; or 
• AADHAR Card issued by the Unique Identification Authority of India

(B) Proof of address
Copy of the following documents of not more than three months old,

• electricity bill; or 
• landline telephone or broadband connection bill; or 
• water bill; or 
• Consumer gas connection card or book or piped gas bill; or 
• bank account statement

(C) Proof of date of birth
Copy of,

• birth certificate issued by the Municipal Authority or any office authorised to issue Birth and Death Certificate b y the Registrar  of Birth and Deaths or the Indian Consulate as defined in clause (d) of sub-section (1) of section 2 of the Citizenship Act, 1955 (57 of 1955); or 
• matriculation certificate; or 
• passport; or 
• driving license 

Apart from the above sites, there are other proven E-portals also which assist in getting PAN card online hassle-freely.