In India, a PAN (Permanent Account Number) card is a unique identification number issued by the Income Tax Department. It serves as a vital document for various financial transactions and serves as proof of identity. Here are some key reasons why having a PAN card is important:
Income Tax Filing: PAN card is mandatory for filing income tax returns in India, whether you're an individual, a company, or a partnership firm.
Financial Transactions: PAN card is required for various financial transactions such as opening a bank account, making investments in securities (stocks, mutual funds, etc.), buying or selling property, or making transactions above a certain limit.
Banking Transactions: PAN card is necessary for opening a bank account, whether it's a savings account, current account, or even a fixed deposit account.
Investments: PAN card is required for investing in financial instruments like mutual funds, stocks, bonds, etc. It's also necessary for investing in certain schemes like the Public Provident Fund (PPF), National Savings Certificate (NSC), etc.
Property Transactions: PAN card is necessary for property transactions, including buying or selling property or for applying for a home loan.
Business Transactions: PAN card is essential for businesses for various purposes like opening a current account, filing tax returns, and conducting business transactions.