The procedure of applying the Pan card requires an individual to collect valid identity& address proofs, recognized as sufficient by Income Tax department, Government of India. Once Pan Card application is made in the department, it can takeupto 15 days for the applicant to receive a confirmation. If an error is found in application form or documents are marked as insufficient, which is common,the applicant is required to repeat the application process.
So, it’s important to know why all Indians must have a Pan Card will all the correct Details:
If you have an unexpected need to take care of financial matters in India, you need to have a Pan card. Else, you will have to either pay extra taxes/fees or carry out more cumbersome process requiring additional paperwork & a representative accesse in India.
· File Income Tax Return: In case of no Pan card, an Indian Resident (as per Income Tax act) can fill form (Form 60, 61),but this is not possible for Non Resident Indians.
· Banking: If you wish to make any significant deposit of funds in a bank or banking company in India, you are required to supply a Pan card. The daily limit on cash deposit transactions without a Pan is INR 50,000. If you wish to deposit any more funds, you need to fill out a special form or have a Pan handy. A Pan is always required to open an account in any bank or banking company in India. You are also required to supply a Pan if you wish to purchase pay orders, bank drafts, or a banker’s cheque in the amount of INR 50,000 or more.
· Capital Investment: A Pan is also required for any kind of investment in Indian capital markets. The Indian economy has continued to grow in recent years and most analysts expect to see long-term growth. Many of these investment opportunities are attractive. In order to take advantages of opportunities to invest in the Indian economy, you must have a Pan Card or extra paperwork.
· Property: In the event that you should have or acquire land or other immovable property in India and wish to sell it, you will need a Pan. The number is required with the sale or purchase of any immovable property worth INR 50,000 or more, and for the sale or purchase of any automobile.
Loan: In the event that you would seek a loan or funding from an Indian financial institution, you will need a Pan. Thus, a Pan is vital to your ability to access capital from Indian sources, both for personal uses and as a way to raise capital for a new organization. Travel & Stay: When you return to India, a Pan will greatly simplify your travel experience. Any bills at a hotel or restaurant must be accompanied by a Pan card. Again,Income Tax Return India if you do not have one, you will have to fill out an additional form every time you settle a bill of INR 25,000 or more. The benefits of saved time and trouble from being able to avoid that practice are worth the cost of the Pan alone!
· Job: If you are seeking opportunity to work in Indian, permanent account number of pan number is a must. The Pan is part of India’s tax tracking system, and all future employers will expect you to have a Pan on file so they can check your identity and taxability. People who receive an annual income ofINR 200,000 or more need to file Income Tax return &must have a Pan.
· Indian Tax Payer Identity: Pan provides you with a permanent identification number that will verify your identity anywhere in the world at any time. The Pan is a reliable and trusted form of identification in almost all purposes, not just for taxes.
· Tax Simplification: Having a Pan simplifies the process of paying taxes in India. If you earn interest from an Indian bank account, the bank will automatically pay your taxes once they have your Pan card. If there are errors in processing, the Pan card will help locate information about your accounts. In addition, the United States (& many other countries) and India have a tax reciprocity treaty under which, if you pay taxes in one country, you can deduct that amount from the taxes you owe in the other.
