Importance of PAN Card for NRI and Indian Residents
A document that is directly linked with the financial transactions of an Individual is the Permanent Account Number (PAN), one of the most important documents at the present day issued by the Income tax Department. In order to prevent the tax evasion by the individuals and the entities this card is linked with all financial transactions made by a particular individual or entity. Mainly PAN Card is used for filling an ITR. It is mandatory for every individual or the tax payer who needs to file an income tax return. Including the foreign citizens/entities/NRIs who are earning taxable income in India must they too are required to obtain PAN card number. The PAN details are essential to open a demat account. Though PAN card is not required while filing an Aadhaar Card Application however, it is mandatory to linked PAN card with Aadhaar if you the person want to file his income tax return. The main objective of PAN is to use a universal identification number to track financial transactions of every individual earning taxable income in India and to prevent taxevasion. If we talk about the use of PAN card other than in filling the ITR, then it will be important to mention here that at present while purchasing any property, opening a new account at the bank, purchasing the shares, buying a new car, insurance payments etc. all these requires the availability of the Permanent Account Number.