What is a PAN Card? PAN stands for
Permanent Account Number (PAN). It is a 10 alphanumeric number, issued
in the form of a laminated card called the 'PAN Card', by the Income Tax
Department of India. The government has made PAN mandatory to be quoted
on the tax returns & all financial correspondence that happen in
India. It is also compulsory to quote PAN Number in all documents
pertaining to economic or financial transactions, even if you are a
foreign company located outside India, you would still need a pan number
to do business with any Indian company.
To begin, it is always advised to have
an Income Tax PANCard. Having an PAN doesn't mean that you have to pay
taxes. One only pays taxes if he/she is generating income from or in
India. However, it is always recommended that you still file taxes
(though zero returns/tax) even if you don't qualify to pay tax. Doing so
would help boost your credibility and would help you in future if you
ever wish to raise loans or commence business, etc.