Is PAN Card necessary for all citizens of India?
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. Unlike the Aadhar and Driving License, it is also issued to foreign nationals who want to do business or invest in India. Hence, it is not acceptable as proof of Indian citizenship. Therefore, PAN is optional and voluntary just like passport, Driving License, Aadhar card etc. However, persons who are required to furnish income tax return or who intend to enter into economic or financial transaction for which it is mandatory, must obtain PAN.
PAN Card - Recently Asked Questions
I have bought a property during the financial year 2019-20 for Rs 60 lakh. While making a payment, I am supposed to deduct TDS at the rate of one per cent. Can I use Aadhaar number instead of PAN of the seller to quote in the TDS return Form 26QB?