A Permanent Account Number (PAN) Card is one of the most vital assets to the Indian adult today. PAN is an alphanumeric code allotted by the government to the applicant and is distinct for every person that has it. A PAN is used as a number to identify a particular person. It is issued by the Income Tax Department and they handle all of the queries of the applicant.
What is PAN?
As already mentioned, PAN is a 10 digit alphanumeric code provided by the Indian government. The number is quoted on various official documents and application forms.
When are PAN cards used?
PAN cards are used in a number of places in the country. They are used in various occasions like opening a bank account or investing cash on anything which exceeds a cost price of Rs. 50, 000. These investments could be anything from paying hotel bills to jewel investment. People seeking loans from the bank are requested to show their PAN cards to the bank officials. PAN Cards are also used as an identity proof if in case one is needed at an occasion.
How are PAN Cards beneficial to the Indian government?
PAN cards are of great benefit to the Indian government. It ensures the economic growth of the country by avoiding tax evasions and providing means of safe transactions throughout the country. Recently, the government made PAN cards a necessary requirement for people wishing to open new bank accounts. This is a great step as anyone without a bank account would find it very difficult to complete big transactions.
The concept of PAN cards has made it very easy for the Indian government to track the transactions going on throughout the country. The government has also set limits for various investments like investing a figure above Rs. 25, 000 in foreign connection or travelling would require PAN cards and depositing any figure over Rs. 50, 000 in the same account within a period of 24 hours would require PAN cards. These uses cannot be skipped by anyone within the country and are of great benefit to track the Indian economy.
So, this proves the necessity of PAN cards in the country. All of the above mentioned pointers are applicable for anyone making transactions within the country no matter the country of origin of that person.
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