Permanent Account Number: PANning on your financial movement
Jewellery shops: High-value purchase of jewellery in cash should be accompanied by a copy of the PAN card of the buyer, mainly as a means to curb black money usage. Other usages of PAN include: Payment in second hand car dealings, installation of telephone and visa facilitation centres.
It is seen that quoting or producing a copy of your PAN card is compulsory in practically every money transaction, and not restricted to income tax dealings. The significance of PAN cannot be questioned as this has become the primary document sought in all important legitimate dealings.
Do NRIs require PAN?
As PAN is required for any financial transaction in India, an NRI will need to have a PAN card if he has an income in India. He also has to file returns if he wishes to invest in India, when he carries out banking transactions, if he purchases real estate or for any transaction mentioned above.
The increasing importance of PAN has increased the likeliness of PAN card identity theft. The safeguarding of the physical copy of the PAN card no longer assures that your card is not being misused. As a majority of transactions demand a photocopy of your PAN card, or simply quoting the Permanent Account Number, it is very easy for your information to be misused for high-ticket purchases or benami property transactions. A copy of your PAN card or simply its number can be quoted in transactions, which you are not even a part
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