Permanent Account Number (PAN)
PAN is a unique ten-digit alphanumeric identifier issued by the Income Tax Department in the form of a laminated card. It is assigned to individuals and entities either upon application or directly by the department.
Purpose of PAN
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Links all financial transactions of a person with the tax authorities.
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Tracks tax payments, TDS/TCS credits, income tax returns, and specified transactions.
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Acts as a unique identifier for taxpayers, ensuring transparency and compliance.
Importance of PAN
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Facilitates easy retrieval of tax-related information.
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Helps in linking various financial documents, including tax payments and assessments.
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Assists in detecting tax evasion by matching financial activities from different sources.
PAN plays a crucial role in maintaining a structured and efficient tax system while promoting financial accountability.
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