Everybody Knows What is PAN card, For banking, Any Transaction, As a identity proof or to avail multiple government facilities in India we need PAN. In India we know the importance of PAN. Without a PAN you cannot open a Bank Account or you are not eligible for any banking facilities until you adopt a PAN.
However, have you ever tried to find out about PAN?
PAN is the is the 10 Digit alphanumeric number Issue by the Income Tax Department of India.
Let’s understand the meaning of PAN..
A typical Permanent Account Number would look like ASZPK7190K
The logic behind the array of numbers and alphabets is as follows:
First three characters i.e. “ASZ” in the above PAN are alphabetic series running from AAA to ZZZ.
The Fourth character i.e. “P” in the above PAN represents the status of the PAN holder.
“P” stands for Individual.
“F” stands for Firm.
“C” stands for Company.
“H” stands for HUF.
“A” stands for AOP.
“T” stands for TRUST etc.
Fifth character i.e. “K” in the above PAN represents first character of the PAN holder’s last name/surname.
Next four characters i.e. “7190” in the above PAN are sequential number running from 0001 to 9999.
Using PAN you can avail Following services:
IT Return Filing
A pan card is necessary for Filing of IT returns, and it is the main reason Individuals and entities apply for PAN.
Opening a Bank Account
A PAN card is required in order to open a new bank account, whether it is a savings or a current account.
Purchase of Jewellery
If you are planning to buy jewellery that is valued at Rs.500000, you will have to provide PAN details to complete purchase process.
Making Investments
In order to make investments in securities over Rs.50000, you need to provide PAN details.
Proof of Identity
A PAN card is accepted as valid proof of identity anywhere in the country, and is also considered as proof of age.
Property
Buying, selling or renting property in India now requires PAN card proof.
Loans
If you require to take out a loan, all loan providers, both banks as well as other finance companies, require you to submit details of your PAN at the time of loan application.
Fixed Deposits
If you plan on investing your money in a Fixed Deposit (FD) amounting to the above Rs. 50, 000 in a bank, you will have to provide your PAN details.
Cash Deposits
If you are making a cash deposit that amounts to over Rs. 50, 000 at a time, you will have to submit your PAN details as well.
You can see that a PAN card is required for many activities, both financial as well as non-financial.