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Pay 10,000/month for 10 years, Get 1,65,805/Year* for next 15 years.
ARN. No. KLI/23-24/E-BB/1201
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Ref. No. KLI/22-23/E-BB/999
Understanding the importance of PAN card for income tax filing in India. Learn why it is necessary to have a PAN card and the consequences of not having one.
In India, the Permanent Account Number (PAN) card is a 10-digit unique alphanumeric identifier issued by the Income Tax Department. It acts as a proof of identity for individuals, firms and companies for financial transactions. In this article, we will discuss why PAN card is essential for income tax filing and the consequences of not having one.
1.The PAN card is a mandatory requirement for all tax-related activities, including the filing of income tax returns. The following are the reasons why PAN card is essential for income tax filing:
2.Identification of the taxpayer: The PAN card serves as a unique identification number for taxpayers in India. It helps the government keep track of all financial transactions and ensures that the right amount of tax is being paid by the taxpayer.
3.Proof of Residence: The PAN card also acts as proof of residence for the taxpayer. This is important because the income tax return has to be filed in the same state where the taxpayer resides.
4.Facilitates easy tracking of financial transactions: With the help of PAN card, the government can easily track all financial transactions made by the taxpayer. This ensures that no transactions go untraced and helps in curbing tax evasion.
5.Helps in avoiding multiple PAN cards: Having a PAN card helps in avoiding the issuance of multiple PAN cards to the same person. This helps in avoiding confusion and ensures that the taxpayer’s financial transactions are correctly recorded.
Not having a PAN card can have serious consequences for the taxpayer, including:
1.Fine for non-compliance: If a taxpayer does not have a PAN card, they will be fined for non-compliance with the Income Tax Act.
2.Difficulty in opening bank accounts: Without a PAN card, it becomes difficult for the taxpayer to open a bank account. This can lead to problems with managing finances and making transactions.
3.Inability to claim tax refunds: Without a PAN card, the taxpayer will not be able to claim any tax refunds.
4.Difficulty in availing of loans: Without a PAN card, the taxpayer may face difficulties in availing of loans from banks and financial institutions.
In conclusion, the PAN card is essential for all individuals and businesses in India for various financial transactions, including income tax filing. The PAN card serves as proof of identity and helps the Income Tax Department to easily track financial transactions for tax purposes. By having a PAN card, taxpayers can enjoy several benefits, including easy tracking of financial transactions, timely processing of tax returns, and avoiding penalty for non-compliance.
1
The PAN card is a 10-digit unique alphanumeric identifier issued by the Income Tax Department in India.
2
The PAN card is necessary for income tax filing because it serves as a unique identification number for the taxpayer, proof of residence and facilitates easy tracking of financial transactions.
3
No, you cannot file your income tax return without a PAN card. It is mandatory to have a PAN card for all tax-related activities, including the filing of income tax returns.
4
If you don’t have a PAN card for income tax filing, you may be fined for non-compliance with the Income Tax Act. You may also face difficulties in opening a bank account, claiming tax refunds, and availing loans.
Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.
Prasad Pimple has a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors
Pay 10,000/month for 10 years, Get 1,65,805/Year* for next 15 years.
ARN. No. KLI/23-24/E-BB/1201
Features
Ref. No. KLI/22-23/E-BB/999
The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The content has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Further customer is the advised to go through the sales brochure before conducting any sale. Above illustrations are only for understanding, it is not directly or indirectly related to the performance of any product or plans of Kotak Life.
