The main purpose of a PAN (Permanent Account Number) card in India is to serve as a unique identifier for all financial transactions and to prevent tax evasion by keeping track of monetary transactions, especially those of high-net-worth individuals who can impact the economy. Here are some of the main uses and benefits of a PAN card:
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Taxation: PAN is mandatory for filing income tax returns in India. It is used to link an individuals or entitys financial transactions with their tax records, making it easier for the Income Tax Department to monitor all financial transactions.
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Identification: A PAN card is a piece of identification that can be used to deter tax evasion and is accepted across the nation as a means of identification. It can be used to submit applications for crucial things including a passport, voter ID, driver’s license, and more.
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Financial Transactions: A PAN card is required for high-value financial transactions such as purchasing real estate or obtaining a loan. It is also used for opening an account in any bank or post office, depositing any amount over ₹ 50,000, and buying or selling any vehicles other than two-wheelers.
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Linking Financial Transactions: A PAN card enables the Income Tax Department to monitor all financial transactions, which plays a crucial role in assessing an individuals or entitys tax liability.
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Age Verification: PAN card can be used as age verification.
Overall, a PAN card is an important document required for completing any major financial task in India.
