PAN (Permanent Account Number) is a 10-digit alphanumeric number issued by the Indian government’s Income Tax Department. It is an identifiable proof number given to every tax-paying Indian resident. PAN (Permanent Account Number) is a number that is used for a variety of things, including tax filing in India, getting a car loan, banking transactions, and other things. You will get your PAN Registration done within 48 Hours. Keep reading this blog.
PAN is an electronic framework that records all tax-related information for an individual or entity under a single PAN number. This serves as the key to data capacity and is shared across the country. As a result, no two taxpayers may have the same PAN number.
Who All Should Apply for PAN Registration
- Any Indian citizen has taxable income in the country.
- A non-Indian who is required to pay taxes in India.
- Any business owner whose total sales, turnover, or gross receipts in the preceding financial year exceeded Rs. 5,00,000/-
Benefits of PAN Registration
There are several advantages to having a PAN card. In the following conditions, you’ll need one:
- Tax Filing In India: When filing your income tax returns, you must have a PAN card. It’s also the main reason for submitting an application. PAN Registration is a must for tax filing in India.
- Opening a Bank Account: To create a new bank account, you’ll need a PAN card. Every bank requires you to submit one when opening a savings or current account.
- ID Proof: This is sufficient confirmation of identification. It is acknowledged by all financial institutions and other organizations because it is issued by a government entity.
- To Claim Income Tax Refund: The TDS amount taken from your salary by your employer may be greater than the actual tax amount you must pay. In such circumstances, the extra cash will be refunded to you. A PAN card is required to get your IT refund.
- Tax Deductions: A PAN card is required for tax purposes for everyone. If you do not have your PAN connected to your bank account and the amount of yearly interest generated on savings deposits exceeds Rs. 10,000/-, you will be required to pay 30% TDS instead of 10%.
- To Open a Demat Account: Your shares are held in dematerialized form in a Demat account. A PAN card is required to open one.
- Buy and Sell Immovable Assets: One of the most significant benefits of having a PAN is the ability to purchase or sell immovable property with a total value of Rs. 10,00,000/- or more.
- Making Investments: If you’re going to invest, you’ll need your PAN number if the transaction is worth more than Rs. 50,000. This is true for all investment alternatives, including stocks, mutual funds, bonds, and debentures.
Some other Benefits of PAN Registration
- Hotel & Restaurant Bills: You would be required to provide your PAN card if your total bill exceeds Rs. 50,000/-.
- Purchase or Sale of Goods & Services: Any purchase or sale of goods or services for a value of Rs. 2,00,000/- or more requires the presentation of a PAN card.
- Bank Drafts, Pay Order, or Banker’s Cheque: With a transaction of Rs. 50000/- or more, you’ll need it for Bank Drafts, Pay Orders, and Banker’s Cheques.
- Foreign Travel: A PAN card is essential if you are planning an overseas journey and need to make a cash payment of more than Rs. 50,000/-.
- To Buy or Sell a Motor Vehicle: When buying or selling a car worth more than Rs. 5,00,000/-, you will be required to furnish your PAN number.
