The computation and payment of tax in India has always been a complicated process. This is why our Government of India introduced PAN cards to make it easier for any citizen to pay taxes due on his income every year.
The abbreviation PAN stands for ‘Permanent Account Number’ in India and this card is now mandatory for most financial transactions in India these days. So, applying for a PAN card in India is a must if you work or do business in the country.
According to the rules framed by the Securities and Exchange Board of India or SEBI, PAN card is also necessary for any foreign investor setting up a business in India. On the PAN card you get a ten-digit alphanumeric number which is actually your permanent account number and you will basically need to quote this number in all income tax forms in India.
Applying for PAN card in India is really easy, because you simply need to be over 18 years of age to get this laminated card. You can send your applications online or offline, depending on which mode you are more comfortable with. You have to pay a very nominal fee as application processing charges and you will need to furnish proof of residence. Any other id proof such as ration card, voter identity card, passport, driver’s license etc will suffice.
There are also many agents across the country who can make the entire process of applying for a PAN card really easy. All you need to do is to provide them photocopies of your id proof and sign on the PAN application form. They will do the rest for a nominal fee, which is usually not more than INR 100.
You should also consider applying for a PAN card at the earliest because of the benefits this card can provide.