As the budget session of the Parliament begins, the youngsters are being bombarded with a lot of jargons that seem to make little sense to them. From heavy words like ‘Fiscal Deficit’ and ‘Cess’ (unless you are a commerce student) to relatively common terms like ‘GDP’ and ‘Tax’, the news since past couple of days has been over-flowing with what the Union Finance Minister Arun Jaitley would serve in the platter this year. Amid the ongoing conundrum, there are a few things that the millennials should know about. Take a peek:
What is KYC?
KYC, which stands for ‘Know Your Customer’, is a process by which banks obtain information about a client’s identity and address. The details are given at the time of opening a bank account and the banks are required to update the details periodically.
What is required for KYC?
You need to submit a proof of identity and a proof of address along with a recent passport size photograph.
What can be used as ‘proof of identity’ and ‘proof of address’?
Passport, Driving Licence, Voters’ Identity Card, PAN Card, Aadhaar Card and NREGA Job Card can be used as the proofs.
What is PAN card and why is it important?
PAN, which stands for Permanent Account Number, is a unique 10-digit alphanumeric identity allocated to every taxpayer by the Income Tax Department under the supervision of the Central Board for Direct Taxes (CBDT). PAN card is not only important for filing Income Tax returns but it also serves as a proof of identity. It is also mandatory for opening a bank account and in bank transactions above Rs 50,000.
What do the digits in the PAN card stand for?
A = AOP (Association of Persons)
B = Body of Individuals
C = Company
F = Firm
G = Government
H = Hindu Undivided Family
J = Artificial Judicial Person
L = Local Authority
P = Person/ Individual
T = Trust
The fifth character represents the PAN holder’s surname or the last name. The four numeric digits in the PAN number are randomly selected between 0001 and 9999 and the last digit is an alphabetic check digit.
What can be used as Proof of Identity?
Following documents can be used as a proof of identity: Aadhaar Card, Voter ID, Driving License, Passport or Ration Card.
What can be used as Proof of Address?
Following documents can be used as a proof of address: Aadhaar Card, Voter ID, Driving License, Passport or Post Office passbook.
What can be used as Proof of Date of Birth?
Following documents can be used as a proof of identity: Aadhaar Card, Voter ID, Driving License, Passport or Matriculation certificate or mark sheet of any recognised board or birth certificate issued by the municipal authority or any office authorised to issue birth and death certificate by the Registrar of Birth and Deaths or the Indian Consulate.
How can I apply for a PAN card online?
Applying for PAN card online is an easy task. All you have to do is open the following link in your web-browser https://www.tin-nsdl.com/pan/pan-index.php and follow the steps.
Step 1: Click on ‘Apply Online‘ option on the top left corner of the website
Step 2: Scroll down and click on ‘Apply‘ option under the heading ‘Application for allotment of New PAN (Form 49A) applicable for Citizens of India’
Step 3: You’ll be directed to an ‘Online PAN application‘ form page. Enter the details and click on ‘Submit‘.
Step 4: You’ll be directed to an acknowledgement page. Click on ‘Continue with PAN Application Form‘.
Step 5: You’ll be directed to a new page wherein you need to enter the mode through which you’ll submit your documents and your personal details. Enter all the details and click ‘Next‘.
In the subsequent pages, you’ll be asked to enter your contact details and other details. Once you’ve entered the details, click ‘Next‘. Next, you’ll be asked to pay a minimum fee of Rs 107, which can be paid via Demand Draft, Cheque, Debit Card or Credit Card. On successful payment of the fee, you’ll be directed to a page wherein you need to submit a proof of identity, a proof of address, a proof of date of birth and your recent colour photograph. You can either upload the documents on the form or mail them to the income tax department.
Do remember to take a print out of your form and keep the acknowledgement number in safe keeping for future reference. Other than that, you’re good to go!
What is Aadhaar Card and What is its importance?
Aadhaar is a unique number issued by the Unique Identification Authority of India (UIDAI) as a part of the government’s national identification project. It aims to collect the biometric and demographic data of residents, store them in a centralised database, thereby identifying fake identities.
The importance of Aadhaar Card lies in the benefits that it provides, which include LPG Subsidy, Jan Dhan Yojana, passport, opening bank accounts, registering for a new PAN card, for registering a voter ID card, among others.
What are the documents required for proof of identity?
Following documents can be used as a proof of identity: Passport, PAN Card, Ration Card, Voter ID, Driving License, Photo ID issued by Recognized Educational Institution, Photo Bank ATM Card, Photo Credit Card, Address Card having Name and Photo issued by Department of Posts among others.
What are the documents required for proof of address?
Following documents can be used as a proof of address: Ration Card, Voter ID, Driving License, Passport, Bank Statement/Passbook, Electricity Bill (not older than 3 months), Water bill (not older than 3 months), Telephone Landline Bill (not older than 3 months), Signed Letter having Photo issued by Recognized Educational Instruction on letterhead and Caste and Domicile Certificate having Photo issued by State Government among others.
What are the documents required for proof of relationship indicating the relationship with the head of the family?
Following documents can be used as a proof of relationship indicating the relationship with the head of the family: Army Canteen Card, Passport, Birth Certificate issued by Registrar of Birth, Municipal Corporation and other notified local authority and any other Central/State government issued family entitlement document among others.
What are the documents required for Date of Birth?
Following documents can be used as a proof of date of birth: Birth Certificate: SSLC Book/Certificate, Passport or Certificate of Date of Birth issued by Group A Gazetted Officer on letterhead.
How can I apply for Aadhaar card?
Here’s how you can apply for your Aadhaar card:
– You can go to any authorised Aadhaar enrollment centre anywhere in India with your documents.
– At the enrollment Centre, fill your personal details within the Enrolment Form.
– At the Centre your photo, finger-prints and iris scan will also be taken as a part of the enrollment.
– You will get an acknowledgement slip with an enrolment number and other details once the enrolment is complete.
– The details provided by you during the enrollment will be verified via an SMS and/or an email.
– Once the verification is done, you will get your Aadhaar card within 60-90 days of the registration.