What is PAN or personal account number
PAN or Personal Account Number or what is also called Permanent Account Number is a ten-digit alphanumeric code that is unique for every individual and is issued by the Income Tax Department. PAN details are provided with your laminated card and sometimes called the PAN card. The PAN number is unique for a person and does not change based on any factor such as age or geographic location.
Use of Personal Account Number
PAN is a significant number that helps the various departments to link all your spending and transactions and help you gain access to funds in a unified manner. At the same time, the number is also used in the assessment of your account. Hence, with PAN’s help, you can make certain transactions, including tax payments, return on income, TCS or TDS credits, correspondence, specified transactions, and much more. Your details are stored in a singular place with the help of PAN. So, institutions can easily retrieve your information and conduct assessments about your financial data. PAN is also used to track an individual’s business activities.
The Various Benefits of PAN
PAN card is necessary for every transaction that you make with the income tax department and has been used for every formal transaction, making it a crucial identifying factor. The PAN is also of grave importance for some other transactions. This number is needed and is compulsory for making several transactions. If you want to open a bank account, deposit cash, make transactions in immovable properties, and more, this number will be asked for at some point. Most of the financial institution is accepting the PAN card as a tool for photo identification. It is for this reason that the development of a PAN card is essential for one and all.
Importance of Personal Account Number
If you are still wondering whether you must get a PAN card or not, here lies the importance of a PAN card:
- If you want to open a Demat Account, you need a PAN card.
- Operating a Demat account needs the presence of a PAN card. Even if you have an account from before, a PAN card is also necessary.
- Buying and selling of mutual funds are also not possible without a PAN card.
- In the case of a joint Demat account, the entire holder must have a PAN card to be operational.
- One person can only have a singular PAN card in his entire lifespan.
- PAN card is mandatory for the sale as well as the purchase of a motor vehicle.
- Most institutions use PAN card as identifying data.
- Payment of more than rs. 50,000 in a hotel or restaurant requires the presentation of a PAN card.