PAN (Permanent Account Number) is considered to be one of the most relevant documents for the taxpayers nationwide. It is imperative to own a Permanent Account Number if someone wishes to categorize their financial transactions in a systematic way. The PAN system has simplified the taxation system of the country by providing a streamlined solution for tax payment. PAN system in India is similar to the Social Security Number system(SSN) in US which was primarily used to track the citizen’s transactions for security purposes but has been recently considered as a required document for filing tax returns. Once issued, a PAN card’s validity extends through a lifetime. PAN card is essential for many financial transactions and also buying jewellery, automobiles etc
To streamline financial transactions in the country, the Government of India made some changes in the PAN card transactions above 2 lakhs and its effective since the beginning of year 2016. The main objectives of the changes introduced in PAN card were to curb the black money flow and widen the taxpayer’s base.
PAN card was made mandatory for the following financial transactions: