PAN or Permanent Account Number is a 10 digit alpha-numeric identity issued by the Income Tax Department of India which is used to track and manage all the Income Tax assessee in India.
Although the PAN card application is voluntary, it must be obtained before engaging in certain transactions. For entering into a financial transaction exceeding a specified amount, quoting PAN is compulsory. Also, every business entity must apply for PAN card application within the 30 days of its formation or incorporation.
Reasons To Obtain Pan
Opening Bank Account
PAN is the most essential document that required to be submitted for opening a bank account of an Individual or a Firm.
Nationalized Identity Card
PAN card is accepted as a photo identity proof for every individual and businesses. From opening a bank account to Government registration, PAN card of individual or business is a primary requirement.
Mention PAN in specified cases
The Government has specified certain transactions where quotation of PAN is mandatory. An Amount is specified for property transfer, bank deposit, payment of bills and more.
Mandatory for filing ITR
For filing individual’s or businesses ITR, quoting Permanent Account Number is a must. All the information filed is associated with PAN for faster assessment and processing.
For TDS and TCS transactions
Every person, deducting or collecting tax at source must mention own PAN and also of the deductee. By quoting a PAN, the tax credit will be associated with the concerned person’s account.
Copy of Aadhar Card or other address proof, in case of an individual
Two passport size photograph, in case of an individual
Copy of Birth Certificate, in case of Minor
Proof from Parents
ID proof and Address proof of any of the parent
Certificate of Incorporation
COI in case of company and LLP
Agreement in case of LLP and Partnership Firm