The Union Finance Ministry has launched the facility for instant allotment of (Permanent Account Number) PAN.

Try this question from CSP 2018:

Q.) Consider the following gatemen.

1. Aadhaar card can be used as a proof of citizenship or domicile.

2. Once issued, the Aadhaar number cannot be deactivated or omitted by the Issuing Authority.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Can’t you expect a similar question based on PAN card? If not , go through this newscard.

What is a Permanent Account Number?

• A PAN is a ten-character alphanumeric identifier, issued in the form of a laminated “PAN card”, by the Income Tax Department.
• It is issued to any “person” who applies for it or to whom the department allots the number without an application.
• A PAN is a unique identifier issued to all judicial entities identifiable under the Indian Income Tax Act, 1961.
• The income tax PAN and its linked card are issued under Section 139A of the Income Tax Act.
• It is issued by the Indian Department under the supervision of the Central Board for Direct Taxes (CBDT) and it also serves as an important proof of identification.
• It is also issued to foreign nationals (such as investors) subject to a valid visa, and hence a PAN card is not acceptable as proof of Indian citizenship.

Uses of PAN

• The primary purpose of the PAN is to bring a universal identification to all financial transactions and to prevent tax evasion by keeping track of monetary transactions.
• The PAN is mandatory when filing income tax returns, tax deduction at source, or any other communication with the IT Department.
• PAN is also steadily becoming a mandatory document for opening a new bank account, a new landline telephone connection / a mobile phone connection, purchase of foreign currency, bank deposits above ₹50,000, purchase and sale of immovable properties, vehicles etc.

Why it is in the news?

• A PAN is necessary for filing income tax returns.
• This facility is now available for those PAN applicants who possess a valid Aadhaar number and have a mobile number registered with Aadhaar.
• The allotment process is paperless and an electronic PAN (e-PAN) is issued to the applicants free of cost.

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