What is a Indian PAN card?

PAN card is one of the most essential documents which refers to a laminated card issued by the Income Tax Department of India, that contains a PAN number. This is a ten digit alphanumeric number that is unique to every individual. In addition, it contains other vital information like your photograph, name, address etc. Now days it is rather compulsory for one to have a PAN, be it a resident or a non-resident Indian.
 

NRIs, Foreign Nationals & Companies:

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Why do you need it and where all is it used?

The Income Tax Department of India has issued the PAN card in order to track the financial transaction of every person. This is necessary to simplify the process of imposing tax. With this end in view, it is mandatory to quote your PAN number in ever financial transaction. Examples of some of these transactions are as follows:

      You are required to give the PAN number if you are buying or selling a car.

      PAN number is needed when you buy or sell immovable property.

      It has to be quoted while buying a mobile phone or getting a land line connection.

      PAN card is necessary for any travel related expense exceeding Rs. 25000.00.

      If you deposit an amount exceeding Rs. 50000.00 in bank or post office, the PAN number has to be quoted.

      If you are NRI, even then you will need your PAN card in order to carry out any of the above transactions in India and also to run a business.

What does the PAN card contain?

The PAN card states all of your basic information on it including: your PAN, your name, your birth date, your father's name, and your signature. In case of a company pan card it includes the India tax number, name of the company and the date of your company formation or incorporation.

PAN - a unique ten-digit alphanumeric combination
Name - Name of the PAN holder
Date of Birth - Date of birth of the PAN holder
Father name - Father's name of the PAN holder
Photograph placeholder - the photograph of the PAN holder
Signature - The signature of the PAN holder



Who is eligible to get a PAN?

Eligibility is not a question here. Anyone can register for one, excpet for certain citizens of a few exempted countries. In general, any person working in India and required to show proof of income should quote PAN. Self-employed persons, or people who run their own business and whose sales exceed rupees five lakh should quote the PAN.
Any person who wants to invest in the country should have a PAN. This is because investments involve financial transactions, and any financial transaction in India requires the quoting of the PAN.



Why is it compulsory for a NRI?

Yes it is compulsory for NRIs these days to provide your PAN while paying taxes, opening a bank account, investing, buying a home and everything else where money is involved. With effect from April 1st, 2007, it's now compulsory for NRIs & Foreign Passport holders to quote PAN on all kinds of financial/investment related transactions in India. Eg: to buy property, open demat/bank account, send money to India, invest in India, etc. The tax department has made it mandatory for everyone (including NRIs, PIOs & Companies) who wish to conduct any type of investments and financial transactions in India. Carrying business, filing or paying taxes, investing in India, buying a property, opening a bank or demat account, etc.

Yes it is compulsory for NRIs these days to provide your PAN while paying taxes, opening a bank account, investing, buying a home and everything else where money is involved.