What Is The Full Form Of PAN In Income Tax?
PAN full form in income tax is Permanent Account Number. It has a unique code of ten characters, combining both letters and numbers. The Indian Income Tax Department issues PAN to every individual and entity which can be brought out under the Indian Income Tax Act of 1961. One of the primary uses of PAN is to assist the government in keeping an eye on financial activities, applying tax laws, and stopping the evasion of taxes.
What’s The Role of Permanent Account Number:
The reason that PAN is of so much importance in India is because of its financial fingerprint. It is important for the tracking of taxes, managing financial transactions, and most importantly, being proof of who you are.
How to Get a PAN:
Every taxpayer and any person carrying on business or any other financial activities, for which they are required under the law to submit a return of income, has to possess a PAN. To get a PAN, you need to complete Form 49A if you are an Indian citizen or Form 49AA if you are a foreign national. This form can be submitted online at the websites of the NSDL or UTIITSL or physically to authorized service centers.
Why You Need a PAN:
PAN is of utmost importance in many financial situations which include the opening of a bank account, receipt of salary through an employer, payment of sale or purchase of any property above a certain value, and depositing funds for investment schemes. It is also very commonly used in India as a mode to prove your identity.