A PAN card (Permanent Account Number card) is an identification card issued by the Income Tax Department of India. It serves as a unique identifier for individuals and entities involved in financial transactions and tax payments. The PAN card is used to track and report taxable income, and it is required for a variety of financial activities in India.

Key Features of a PAN Card:

1. Unique Identification Number:

   • The PAN is a 10-character alphanumeric code (e.g., ABCDE1234F).

   • It serves as a unique identifier for individuals, organizations, and other entities that are liable to pay taxes or conduct financial transactions.

2. Purpose of the PAN Card:

   • Taxation: The primary purpose of a PAN card is to track a person’s or entity’s tax obligations and payments. It is used for filing income tax returns (ITR) and for financial reporting.

   • Financial Transactions: It is required for high-value transactions such as opening a bank account, buying property, applying for loans, or making investments. It is also necessary for transactions above a certain monetary threshold, such as purchasing or selling assets like real estate and shares.

   • Identity Proof: The PAN card can also serve as a valid identification document for various official purposes.

3. PAN Card Format:

   • The PAN is a combination of 10 characters. It consists of:

     • First 5 characters: Letters (representing the name or category of the person/entity).

     • Next 4 characters: Digits (unique to the individual or entity).

     • Last character: Letter (used for additional identification).

4. Who Requires a PAN Card?

   • Individuals: Anyone who earns an income or conducts taxable transactions in India.

   • Businesses/Companies: Legal entities that need to pay taxes or conduct financial activities.

   • Foreign Nationals: Individuals or entities who have taxable income in India.

5. Where is PAN Required?

   • Opening a Bank Account: It’s needed for opening a savings or current bank account.

   • Tax Filings: Individuals and businesses must provide PAN when filing income tax returns.

   • Property Transactions: PAN is required for buying or selling property.

   • Large Transactions: PAN is necessary for transactions involving amounts above ₹50,000, such as purchasing or selling a vehicle, shares, bonds, etc.

6. How to Apply for a PAN Card:

   • Online Application: You can apply online through the official website of the Income Tax Department (e.g., NSDL) or other authorized service providers like UTIITSL.

   • Offline Application: You can submit the application in person at designated PAN card centers.

   • Required Documents: Typically, you will need proof of identity (e.g., Aadhaar card, passport), proof of address (e.g., utility bills, passport), and passport-sized photographs.

   • Fees: There is a nominal fee for applying for a PAN card. The fee varies based on whether you apply from within India or abroad.

7. Tracking the PAN Application:

   • After submitting the application, you can track its status using the application number provided.

8. PAN Card for Foreign Nationals:

   • Foreign nationals living in India or entities involved in business activities in India can also apply for a PAN card.

9. Corrections in PAN Card:

   • Change in Details: If there is a mistake in the PAN card (e.g., incorrect name, address), you can apply for a correction.

   • Lost or Damaged PAN Card: If your PAN card is lost or damaged, you can request a re-issue of the card.

Why is PAN Important?

• It serves as a central point for monitoring the financial and tax activities of an individual or business.

• It helps in curbing tax evasion by tracking high-value transactions and ensuring compliance with tax laws.

• It ensures transparency and accountability in financial dealings.