Permanent Account Number is an alpha-numeric number with ten digits that is issued by India’s Income Tax Department in form of a card.
The card is issued to a person who submits a formal application. It can also be issued to a person who has not applied for the PAN card whenever the ITD finds it necessary to do so.
It is important for any person who lives or carries out business in India to register PAN card because it enables Income Tax Department to connect all transactions conducted by the card holder with the ITD.
Are you aware that PAN applications must be submitted in the new application forms prescribed by the Income Tax Department? Are you also ware that Indian citizens are strictly required to use Form 49A when submitting applications for allotment, whereas foreign citizens are required to make use of Form 49AA? This requirement became effective on 8th April 2012.
PAN card enables linking of transactions such as tax payments, returns regarding income, FBT, wealth or gifts as well as TCS/ TDS credits, among other transactions.
India’s Income Tax Department expects every eligible person to register PAN card.