Know Why Pan Verification Is Very Important And How To Do It?

A Permanent Account Number (PAN)  Card is required in order to carry out any kind of financial transaction in the modern economy. Your Personal Identification Number (PAN) must be presented for verification if a transaction has a value that is greater than the threshold limit, regardless of whether you are establishing a bank account or buying gold. PAN cards are often required for financial transactions by banking institutions and insurance firms. As a result, this online PAN verification facility has been made available to you. Even if you are authenticating a PAN card for someone else, you are obliged to have all of that person’s needed information available online. This is the case even if you are doing it on their behalf.

The PAN verification online service will be provided by NSDL E-Government Infrastructure Limited, which has been given permission to provide it by the Income Tax Department.

Here’s how you can verify your PAN online

1. The information that pertains to your Permanent Account Number (PAN) is a way for businesses to learn more about your identification, and it comes from a very trustworthy source, which is the Income Tax Department of the Government of India. Your birth date, as well as the name of your father and a specimen signature, are all included on your PAN card.

Consequently, having a PAN card makes it easier for businesses to verify this information using a trustworthy source. In order for businesses to prevent applicants from being impersonated by dummy candidates, proper identification checks are frequently carried out by these businesses.

2. Another potential reason why employers need a copy of your PAN card is that, in the event that you are hired for the position for which you were interviewed, the employer will need your PAN data in order to credit your pay, TA/DA, or any other entitlements. According to the regulations governing the administration of internal revenue, income tax must be withheld at the source from any type of compensation that is paid to an individual.
3. There are situations when a corporation could ask for the PAN card of the person who owns your home. If you want to claim HRA exemption on the TDS that is taken from your pay, you will need to provide this. If the yearly rent is more than Rs 1,000,000, the Income Tax Department has made it essential since 2013 for the owner’s Permanent Account Number (PAN) to be submitted. U/s 10 (13 A) of the Income Tax Act 1961, unless you’re a salaried person who receives HRA first from the employer, you could enjoy tax exemption.

There are three different methods for PAN verification:

• Verification is done through a screen.
• Verification based on both files and screens
• Verification is done using software (through API)

Screen-based  PAN verification allows users to enter up to a maximum of five PANs on the screen that is displayed after they have successfully logged in. In the spaces provided on the panel, the PANs would be typed in and then sent in as a submission. The answer that includes all of the pertinent information regarding the PAN will be displayed on the response screen.

File- and screen-based pan verification: After logging in, users are allowed to upload a file containing a maximum of 1000 PANs (file structure as specified by the portals). Within twenty-four hours, the website will provide a response file that contains information on the PANs that are currently accessible. Should the file format be incorrect, the application will notify the sender of the rejection within twenty-four hours. The individual has the ability to access the response for a period of up to 15 days at their own discretion.

Verification of the Personal Identification Number (PAN) using Software (API): The facility is indeed an interface that allows the applicant to carry out online PAN verification using a software application by going to the pan verification site.

Where can I check my PAN card online? PAN card holders may now verify their PAN cards online, eliminating the need to travel to the local income tax office. To do so, they only need to follow the procedures that are given below:

1. Go to the e-filing portal for your income tax return, and sign in to your e-filing account there. 2. After selecting Profile settings, navigate to the My Profile tab to examine your profile’s specifics.
2. In this section, you will be asked to provide your personal information, such as your complete name, date of birth, and personal identification number (PAN).
3. At this point, you will be asked to specify the purpose of your PAN cards, such as whether it was obtained for an individual, a company, or a HUF, etc.
4. After that, you need to complete the captcha that displays on the site and then select the option to submit.
5. Following that, your PAN card will be displayed with the current status of your PAN verification.

Conclusion

We hope that now you know the importance of PAN verification and how you can do it easily. Nowadays, PAN verification has become really necessary in India.