PAN in India

Topic: Permanent Account Number (PAN)

Use of PAN in India:

PAN is mandatory to file returns with Income Tax Department in India. By providing the tax returns file acknowledgement (I.e. form 16) is mandatory.

Without form 16 acknowledgement it's not possible to get any kind of loan or to buy properties thru’ any banker.

Recently, Indian government has implemented the regulation that PAN is mandatory to do any kind of investments in financial sector and banks.

Bank transaction – To remit the cash in cash counter, PAN is mandatory if not registered with their records and while opening the bank account PAN is mandatory.

Demant account – Without PAN, it’s not possible to open demant account to buy or sell shares in capital market any amount.

Mutual fund and Insurance – PAN is mandatory to do any kind of investments in Mutual fund and Insurance. (Expect Micro SIP in mutual fund, Micro SIP should not exceed investment of 50000INR per financial year and it’s mandatory to provide Identify proof and SIP self declaration)

Even though, if you are not coming in under tax bracket, just file your “Nil Tax Returns” with Income Tax Department. This acknowledgement (I.e. Form 16) might be very useful in future. I suggest once you get PAN card just submit your “Nil Tax Returns” every year.

How to apply PAN:

PAN Service centers are available across India that includes small town and some villages. They are just charging 94INR per application form in India and 744INR outside India and said charges as on as on April 1st, 2009.

To check more information just visit the site at http://www.tin-nsdl.com/ and the online services are available as given below,

• Apply New PAN card

• Reprint of PAN card

• Transaction status enquiry

• Changes or correction in PAN details

• Track/status of your PAN application

If you face any PAN related issues with National Securities Depository Ltd (NSDL) department, please do visit to submit your grievances at http://www.tin-nsdl.com/customerfeedback.asp.

Recently, I used to get the services of NSDL are not in track as one of my friends shared his own experience with NSDL, it was typical error in name or date of birth in PAN card and it will take more than three months to get the corrected PAN card or to get duplicate PAN card and in some of the cases the PAN card applier was not received their PAN card even more than six months of date of submission.

NSDL has to keep their auditing department to quality check the application form while feeding the data's and before dispatching to their PAN card holders as PAN card plays a vital role in India.

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Note: Above said information is drafted by publisher up to his/her knowledge. This may vary with original.