In this blog, we will see the Importance of holding a PAN & Features of New PAN Card – issued by Income Tax Department (i.e., PAN Card issued after July 2018).
First will see what is PAN card?
A PAN is a ten-digit unique alphanumeric number issued by the Income Tax Department. PAN is issued in the form of a laminated plastic card as given below (commonly known as PAN card).
Below Image shows the Design of New PAN CARD:
IMPORTANCE OF HOLDING VALID PAN
There are many benefits of possessing a PAN number, as it is just a necessary rule laid by the IT department; thus having it is a compulsion & you must quote it on all your financial transactions in India.
- It acts as an Identity proof
- To file Income tax return, you would need to furnish it
- Quoting of correct PAN is important while filing TDS returns
- For register in GST portal
- To start a business
- For buying or selling property
- Open banking or investment account
- Apply for loans
- Apply for credit card
- For purchasing car or any other thing
- To deposit cash in bank of more than Rs 50,000/-
New PAN Card- Its Features & Design
- Enhanced QR Code will contain Photograph & Signature of PAN applicant apart from existing information i.e., PAN, Name, Father’s Name/Mother’s Name, Date of Birth/Incorporation/Formation. The aforesaid details will be digitally signed & coded on the Enhanced QR Code.
- Enhanced QR Code shall be readable by specific Mobile App which is available on Google Play Store (Keywords – ‘Enhanced PAN QR Code Reader’). An autofocus camera having a resolution of 12 Mega Pixel and above is recommended for the reading of the Enhanced QR Code.
- Positions of Photograph, Signature, Hologram, and dimension of QR Code have changed.
- The Enhanced QR code will also be provided in the e-PAN Card issued to the PAN applicants.
PAN card issued before July 2018 is also Valid, So No Need to apply for New PAN Card.