Introduction:
PAN, otherwise referred to as Permanent Account Number, is a unique identification number allotted to individuals who pay taxes to the Indian government. It is a ten-digit alphanumeric number. Since it is a permanent account, PAN number remains unaffected even if the person changes their address or job. It is issued by the Income Tax Department of India and is mandatory for anyone who wants to file their taxes or perform activities that are related to making financial transactions. Let’s see 15 facts about PAN.
Fact 1: PAN is Based on Discrimination of Status.
The PAN system is based on differentiating citizens based on their financial status. The Department of Income Tax divides citizens into different categories such as individual, Hindu Undivided Family, Trust, etc. Depending on the category, PAN is different.
Fact 2: PAN is Mandatory for Everyone.
Everyone who desires to make any financial transactions or is liable to pay taxes should mandatorily have a PAN Card. Without a PAN card, it would not be possible to engage in any financial activity.
Fact 3: A PAN Card is Not an ID Card.
PAN or Permanent Account Number is not a valid form of identification like a Driver’s Licence or a Passport. It is more like an identity card that is issued for the purpose of paying and filing taxes.
Fact 4: PAN is Non-transferable.
The PAN number is not transferable. Even if you change your job or address, your PAN number remains the same.
Fact 5: The PAN Number is Disclosed for Every Transaction.
Anytime you make a transaction, your PAN number must be disclosed in order complete the transaction. This PAN number is then used to track the contribution made by each individual in terms of taxes.
Fact 6: Your PAN number Cannot Expires.
Unlike other identification documents or cards, your PAN number will remain the same irrespective of how much time has passed since you obtained it.
Fact 7: PAN also Acts as a Form of Authentication.
In any transaction or filing of taxes where your PAN number is disclosed, it serves as a form of authentication that it is you who is making the transaction.
Fact 8: It Cannot be Changed by You.
Your PAN number cannot be changed. The only way it can be changed is if you request the concerned authorities to do so and provide valid evidence as to why it should be done.
Fact 9: PAN belongs to the Individual and Not Any Company.
PAN belongs to you as an individual and not to any company or organization you might be employed with. Even if you change your job, the PAN number could be the same.
Fact 10: You Need to Provide Your PAN for Credit Card Payments.
Whenever you make a payment using your credit card, you need to provide your PAN number. This happens for safety reasons as PAN serves as a form of authentication of who you are.
Fact 11: PAN is Widespread in India.
PAN is so widespread in the country that almost every individual who pays taxes should have one. It is an essential document if you wish to participate in any kind of financial activity.
Fact 12: It is Possible to Get PAN Card without Quoting the AADHAR Number.
If an individual does not possess an Aadhar card, they would still be able to apply for PAN and obtain it without any problems.
Fact 13: You Can Check the Status of Your PAN Card.
There is a particular website initiated by the government of India where you can check the current status of your PAN card. You can use this website to check whether your PAN number has been approved or not.
Fact 14: You Can Apply for Duplicate PAN.
In case you have misplaced your PAN Card, it is possible to apply for a duplicate PAN. You will be asked to provide a few details and your PAN will eventually be issued by the concerned department.
Fact 15: You Can Update Your PAN.
At times, you might need to update the information in PAN like your address or name. It is important to keep your PAN updated in order to provide the correct information when filing taxes. For this, you can use the same website referred in Fact 13.
Conclusion
PAN or Permanent Account Number is a 10-digit alphanumeric number issued by the Income Tax Department of India. It is used for tracking financial activities of each and every individual who pays taxes to the Indian government. Even though PAN is compulsory for filing and making transactions, it is not a valid form of identification document like a passport or a driver’s license. We hope that after reading the 15 facts on PAN, you have a clear understanding of this important document.
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