In Lok Sabha, the Ministry of State for Finance has submitted a written reply that 20,73,434 citizens of India applied for PAN and the applications were under process as of January 2018. Furthermore, as per the Income Tax Department, 15-20 lakh PAN applications are submitted per week.
The primary importance of PAN card is to serve the purpose of valid identity proof in India. Yet, it is used in various monetary activities. Even NRIs and overseas citizens also need this card to perform any financial operation in this country. The Government has taken this initiative to restrict money laundering in India.
Following are some significant uses of this card –
- Income Tax Return filing
As per income tax laws, every earning citizen of India must file ITR. And whether an individual or any organisation, PAN is a necessary document for ITR filing. Thus, the importance of PAN card for working individuals is understandable.
- To open an account in any financial organisation
As an essential KYC document, Indian residents, NRI or overseas citizens, must possess a PAN to open an account in any financial institution within the country.
- Monetary transaction
As per RBI rules and regulations, to invest, deposit cash or to pay insurance premiums, beyond Rs.50,000, even by using debit cards or credit cards, you must submit PAN to the concerned financial organisation. This is one of the most important uses of a PAN card. Nonetheless, you can opt for reputed insurance aggregator Bajaj Finserv that provides the Wallet Care insurance plan under Pocket Insurance & Subscriptions to cover yourself from financial obligations due to the loss of PAN.
Purchasing or selling vehicles and property
Purchasing or selling property as well as vehicles requires both seller and buyers’ PAN. Even, if you are willing to rent your property, PAN submission is mandatory.
- To avail credit card or loan
One of the benefits of PAN card is that you can avail a loan or credit card facility from any financial company seamlessly through it. Similar to your creditworthiness, PAN is also an essential document that you must possess to avail such financial products. Nonetheless, if you use digital options of payment you need to be careful about digital theft. So, you can buy an identity theft insurance cover to protect yourself from digital fraudulent financially.
- To avail telecommunication
As per the government norms, without submitting valid PAN details, no telecommunication company in India can provide you phone connection service. To protect against unauthorised telecommunication access, the Government has introduced this rule. So, the importance of PAN card also lies upon the security of the country.
- To buy jewellery
In India, it is common for women to buy jewellery for the wedding as well as to fulfil a desire. If the purchasing amount is more than Rs.5 lakh, you must submit your PAN details to the shop. So, you should carry your PAN while going to purchase jewellery. Also, to cover yourself from any financial losses due to unforeseen events like if you have lost a PAN card, you can purchase a purse care insurance policy.
In addition to this, you also need to know the required procedures to apply for a duplicate card in case you lost the previous one. You can apply both offline and online for duplicate PAN cards. However, apply an online duplicate card for a hassle-free procedure.
To enable the online process, you must have already submitted your mail ID and mobile phone number along with your original PAN application. The system will generate an OTP to validate your credentials.
You can opt for a duplicate PAN card application online by visiting the government website www.tin-nsdl.com. You have to submit your Aadhaar, PAN details along with your date of birth to re-print the card.
Lastly, from the aforesaid points you have understood the importance of PAN card. Thus, you should be careful while using it.