Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated tamper proof card, by the Income Tax Department of India. The Permanent Account Number (PAN) is unique to an individual or entity and it is valid across India. Permanent Account Number once allotted to an individual or entity is unaffected by a change of name, address within or across states in India or other factors.
PAN is a unique identification number that enables each tax paying entity of India with the following:
Proof of Identity.
Proof of Address.
Mandatory for Filing Taxes.
Registration of Business.
Eligibility to open and operate Bank Accounts.
Advantages of PAN card
1. Tax deduction.
2. Starting a business.
3. Claiming refund from income tax.
4. Buying a car.
5. Opening a Bank/Demat account.
Disadvantages of PAN card
1. Once you are alloted a PAN, you cannot escape from Income Tax department.
2. You have to produced PAN card for some specific transactopns.
Preparation of documents
Filing of PAN application
Submission to Income Tax Department
Payment of Pan Fees