PAN Card is an acronym of Permanent Account Number, which is used by individuals to pay their taxes and keep track of their financial records. This PAN card can also be used as a government identification proof. It consists of a 10-digit Alphanumeric Number and is being issued by the Indian Income Tax Department. Including Indian citizens, foreigners and Non-residential Indians, can also avail this PAN card, who have business interests in India.
Even though, the PAN card is issued by the Indian Government to the Foreign Nationals, while they submit a valid visa, this can not be taken into account as Indian citizenship. This PAN is required for any financial transactions, such as opening bank account, making deposits, etc. PAN card should be submitted as a proof, when we perform high value transactions. This PAN card is valid for a lifetime and the change in address of the particular individual, does not get affected.
PAN Card Structure:
- The PAN card number is ans alphanumeric number, which can be divided into 3 parts.
- First five characters are alphabets, next four numbers are numbers and last character is a number.
- Initial three numbers are from the series of AAA to ZZZ and the fourth character signifies the type of the card holder, whether he is a company, firm, individual, Local authority, etc.
- The fifth character of the PAN is the first character.
- And the last character is the alphabetic check digit.
- Other details mentioned in the PAN card are as follows:
- Name of the Individual
- Date of Issue
- Father’s Name
- Date of Birth
- Photo of the Individual
- Signature of the Individual
- Government Seal
- Indian citizens or Foreign nationals can apply for this PAN card through online mode or offline mode.
- However, obtaining a PAN card is optional, unlike voter’s ID.
Uses of PAN Card:
- PAN card should be produced, while filing for Tax.
- PAN card should also be produced, while opening bank account, opening deposits, etc.
- PAN card can also be used as a proof of identification while applying for gas connection, land line connection or phone connection.
Even though, PAN is being used to keep track of individual’s income and their tax returns. However, this is also gaining importance as identification proof and for other banking services.