All About ITR Most Important Document, PAN Card

PAN or Permanent Account no.is a unique 10 digit alphanumeric identity given to any “person” by the Income tax department.It is in the form of a laminated card and serves as an identity proof.Its main objective is to use universal identification for tracking various financial transactions and hence preventing tax evasion.

The government can easily keep a track of all the monetary transactions of various sections of people by linking it to PAN.This is the reason why the mandatory quoting of PAN on various documents and financial transactions has increased over the past few years.

“Person”can be an Individual,HUF,Firm,LLP,AOP,BOI,Company,Trust or Local Authority.

Having a PAN Card is mandatory for anybody who earns a taxable income in India including foreign nationals.But,others can obtain it as a proof of identification or if they are willing to enter into specific transactions that require PAN.

In India,it has been made compulsory to quote your PAN for various activities and transactions like:

*Opening a Bank account.

* While paying direct taxes.

* Filing of Income tax returns.

* Filing of TDS Returns.

* Sale/purchase of immovable property amounting to Rs.10 lakhs or more.

* Sale/Purchase of motor vehicle other than two wheeler.

* Cash payment exceeding Rs.50000 in connection to travel to foreign country.

* Cash Payment of hotel bills exceeding Rs.50000

* Purchase of mutual funds.

* Purchase or sale of goods and services exceeding Rs.2 lakhs per transaction.(Includes jewellery also).

*Payment of Rs.50000 or more for acquiring bonds or debentures.

PAN is already a must for various financial transactions.The government further keeps on taking measures to widen its tax base and curb black money.Quoting of PAN is one such step of the government towards a cashless economy wherein all monetary transactions will be through modes other than cash.