PAN Registration

PAN Registration

Permanent Account Number (PAN) is unique alphanumeric combination issued to all juristic entities identifiable under the Indian Income Tax Act 1961. It is issued by the Indian Income Tax Department under the supervision of the Central Board for Direct Taxes (CBDT) and is almost equivalent to a national identification number. It also serves as an important ID proof.

Usage of PAN

  • This number is almost mandatory for financial transactions such as opening a bank account, receiving taxable salary or professional fees, sale or purchase of assets above specified limits.
  • The primary purpose of PAN is to bring a universal identification key factor for all financial transactions and indirectly prevent tax evasion by keeping a track of monetary transactions of high net worth individuals.
  • The PAN is unique, national, and permanent. It is unaffected by a change of address, even between states.
  • Sale or purchase of any immovable property valued at five lakh rupees or more; a time deposit, exceeding fifty thousand rupees, with a banking company ;a contract of a value exceeding one lakh rupees for sale or purchase of securities; Payment in cash in connection with travel to any foreign country of an amount exceeding twenty-five thousand rupees at any one time.