Permanent Account Number is the unique alpha numerical number of 10 digits issued by the PAN Income Tax Department. This UAN number is also known as Pan Card. Today, from opening a bank account to filing an income tax return the PAN number has become mandatory. Apart from this, the government has made it possible to provide PAN details for various types of transactions. Here are details about where and where it is necessary to have PAN number and for whom it is important to create a PAN card.
If Income more than 2.5 lakh rupees annually:
According to the Income Tax department, if someone's annual income is more than Rs. 2.5 lakhs then it is necessary to make a PAN card. Under current rules of Income Tax Act, the tax is not available on annual income up to Rs 2.5 lakh. Income tax is more than that. Apart from this, it is also important to file an income tax return for those who earn more than Rs. 2.5 lakhs. Under the existing rule, you can not file income tax returns without PAN card. Hence it is mandatory to have PAN number to file income tax return.
The business of more than 5 lakh turn-over
If a person is running business or is offering professional services and he thinks that in any previous years his total sales, turnover or total receipts can be more than Rs. 5 lakhs then it is necessary to make a PAN.
PAN for Exporters and Importer
For any exporter or importer for which export or import of goods is required, it is necessary to create a PAN card. Without it, it would be difficult or even impossible for him to do business.