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 hold a PAN (permanent Account Number) and OCI (Overseas Citizenship of India) card and am a current citizen and tax resident of Australia. I am planning to come back to India after retirement. Will my Australian retirement funds which are tax-free in Australia be also tax-free in India, if I decide to become an Indian tax resident in the future?
I have held equity shares of a company which were previously listed in a recognised stock exchange, but delisted subsequently, and became unlisted. How do I report PAN of company in the column "whether you have held unlisted equity shares at any time during the previous year"?