PAN number also known as Personal Account Number is necessary for everyone having connection with India, and it is mandatory in all kinds of financial formalities. The person may be Non-resident Indian, a person of Indian origin, an overseas citizen or an Indian citizen.PAN card in India is more like the SSN (Social Security Number) of the United States. As defined by Wikipedia.org, PAN card also known as
Permanent Account Number (PAN) is unique alphanumeric combination issued to all juristic entities identifiable under the Indian Income Tax Act 1961.
Benefits of PAN Card:
• The most important benefit of having a PAN Card is that our all financial activities can be monitored by the Income Tax Department, India.
• The most important benefit of having a PAN Card is that our all financial activities can be monitored by the Income Tax Department, India.
• No scope for fake use of your PAN card as it is unique and permanent number.
• It is national ID proof for the citizen of a country.
• Once made, the information saved in the Card cannot be changed, so, it is permanent address proof.
• Once made, the information saved in the Card cannot be changed, so, it is permanent address proof.
• It is reliable ID proof accepted by all.
• It is easy to get cellular or residential phone connection also a bank account.
• With a valid permanent account number, NRIs can invest, buy or sell movable as well as immovable property, without having to file taxes in India.
• A minor can open a bank account or have minor transactions with his parents or guardians PAN ID.
• It is easy to get cellular or residential phone connection also a bank account.
• With a valid permanent account number, NRIs can invest, buy or sell movable as well as immovable property, without having to file taxes in India.
• A minor can open a bank account or have minor transactions with his parents or guardians PAN ID.
In short, PAN card keeps Income Tax department updated about all our financial transactions, our income and gains. Thus all our activities, our financial credits, our securities, transactions of all our properties are scrutinized by the IT department very closely, minimizing all chances of Tax evasion by the individual.
A PAN card is mandatory:
• For all financial transactions above Rs. 50,000. This helps the IT Department to remain updated with all the financial activities of the individual.• For initiating a bank account.
• For demat accounts, if you are interested in Shares transactions.
• For submitting an application for a credit card.
• For purchasing pay orders, bank drafts or banker’s checks.
• For the sale pr purchase of any moveable or immovable property valued at or above 50,000.
• For buying shares, debentures, or similar securities amounting to Rs 1 lakh or more.
• While applying for passports as it is a credible national ID proof.
• For buying vehicles requiring registration.
• For payment of hotel or restaurant bills above Rs. 25,000.
• For purchase of foreign currency above Rs, 25,000
• During foreign trips exceeding amount above Rs. 25,000.
• For all NRIs who wish to invest or have any kind of financial activity in India.
• For all NRIs who wish to invest or have any kind of financial activity in India.
Looking physically, The Pan card is a laminated card, carrying the photograph, Number and basic information about an individual.
Let us see how 10 digits of PAN card are built up?
Here, First 5 characters are letters, the next 4 characters are numbers and the last one character is a letter again. These 10 characters are divided in five groups as shown in diagram below.
The meaning of each number has been explained further.
1. First 3 characters are alphabetic series running from AAA to ZZZ. It is general series number.
2. Fourth character of PAN represents the status of the PAN holder. Following are various abbreviations for status;
• C - Company
• P - Person
• H - HUF(Hindu Undivided Family)
• F - Firm
• A - Association of Persons (AOP)
• T - AOP (Trust)
• B - Body of Individuals (BOI)
• L - Local Authority
• J - Artificial Juridical Person
• G - Government
• C - Company
• P - Person
• H - HUF(Hindu Undivided Family)
• F - Firm
• A - Association of Persons (AOP)
• T - AOP (Trust)
• B - Body of Individuals (BOI)
• L - Local Authority
• J - Artificial Juridical Person
• G - Government
3. Fifth character represents first character of the PAN holder’s last name/surname. e.g. if Full name of PAN holder is Pratik Nagesh Joshi, then here, First character of his surname i.e. 'J' will appear.
4. Next four characters are sequential number running from 0001 to 9999. Again series numbers.
5. Last character in the PAN is an alphabetic check digit. This is related to Income Tax department.
This is all about PAN card and Personal Account Numbering. Don't miss our another popular post on Aadhar card. Click here to visit it!
Few information is fed by: Fine Advice - Wealth Management
Image courtesy: pugalss blog
Other than mutual funds, the NRI investment in India is not new but the market now is booming and will remain so for another couple of years without any doubt. NRIs can invest in the share markets directly or through mutual funds efficiently
ReplyDeleteSee if you can find solution at http://www.hdfcbank.com/nri_banking/investments/mutual_funds/mutual_funds.htm
ReplyDeleteSee under REQUIREMENTS tab. As I am not from commerce field, I have limitations while solving your problem.
REQUIREMENTS:
The applicant needs to be an existing bank account holder, since a customer ID is mandatory.
The Savings Bank Account status has to be Single or Either/Survivor.
The bank account holding pattern will be the same as applicants for Online Mutual fund(Investment Services Account).
The Account Opening Application Form has to be signed by the Mutual Fund Applicants.
PAN Requirement: PAN (Permanent Account Number) has been made mandatory for investments into mutual funds for all investors irrespective of the amount. All customers who wish to apply for Online Mutual Fund(Investment services Account) are required to have a PAN.
For NRI customers(Non-face to face): The PAN card copy is required to be attested by the Indian embessy post which the PAN cards can be sent to the home branch or the relationship manager. However, please note that actual processing of KYC document is done by CVL Ventures Ltd. Any specific requirements raised by them have to be complied.
The PAN cards are required to be attested by the Relationship manager as Seen Orignal & verified" before attaching the same with the ISA form.
Bank Account Linkage letter needs to be signed by the Bank Account Holders.