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How Getting A PAN Card Could Be Useful How Getting A PAN Card Could Be Useful May 25 http://www.cheapswelltravelers.com/ , 2014 | Author: Ashis Jain | Posted in Business
The Indian tax system requires that everyone pays income taxes and any other taxes that are listed in different regulations. The implementation of this law has made it necessary to widen the tax net in order to get as many people as possible to pay taxes. The introduction of the PAN card in the tax system was the best way to net as many people as possible to pay different taxes and adhere to many other regulations. The card is so mandatory that you may not be able to do some things if you do not have it hence making it very essential.

This 10 digit alphanumeric unique identity is what is used to identify people for tax purposes. It is designed to be used in many other transactions where your identity is key to making the transactions authentic. The idea is to keep every financial transaction that comprises of a tax element in track with the main goal of preventing tax evasion.

Everyone who earns any taxable income in India is required by the tax law to apply for a PAN including foreign nationals that are required to pay taxes in India. It is also important for businesses to be tax compliant by applying for the number if they make a turnover exceeding Rs. 5 Lakh in any given year. Tax compliance is an essential element for every citizen hence having the card is very helpful.

For you to be issued with your own PAN card, it is important to understand whether you should fill form 49A or 49AA. This information can be obtained from the Income tax department of India and visiting the office to apply or applying online. The application process requires that you submit a copy of your national ID and any proof of your place of residence and paying the requisite amount through a demand draft, cheque or cash.

Having the permanent account number allows people to undertake different financial activities including payment of taxes Cheap Swell Blue Bottle , filing income tax returns and in avoiding being charged more taxes than necessary. This is the number that shows the tax department that you are tax compliant or not. You cannot file income tax returns or pay direct taxes if you do not have this number.

You have to pay taxes when doing different transactions like in the purchase of immovable property worth least Rs. 5 Lakh. Everybody transacting in selling or purchasing an automobile, besides a two wheeler should also disclose their PAN number during the transaction since taxes may need to be paid. Therefore, getting this type of card becomes mandatory to be able to conduct such transactions.

The card is also mandatory if you are transacting amounts exceeding Rs. 25 Cheap Swell Travelers Bottle ,000 in a hotel, restaurant, and travel to a foreign country. Additionally Cheap Swell Black Bottle , payments of over Rs 50,000 to the Indian Reserve Bank when buying bonds are also subject to tax, charged on the number. This makes the card very essential in everyday life in India.

You will also need a PAN card when buying shares exceeding Rs. 50 Cheap Swell Tumblers Bottle ,000 in value. The number will also be needed when depositing over Rs 50,000 in a bank within 24 hrs. Payment of at least Rs 5 Lakh to buy bullions or jewelry also has to be supported by this number.

Learn more about pan status stop by Ashis Jain’s site.

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