8 reasons why PAN Card is important for an individual

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Published: January 23, 2017 12:15:07 PM

To prevent tax evasion from all kind of financial transactions made by an individual, the Income Tax Department of India has issued a unique 10-digit alphanumeric PAN Card for the citizens of India as well as NRIs.

PAN CARD, PAN, RBI, Copy of PAN, from 49a, income tax depatment, income taxA copy of PAN Card is required while you are buying a property, getting a new telephone connection, opening a bank account, doing any investment or making any payment.

To prevent tax evasion from all kind of financial transactions made by an individual, the Income Tax Department of India has issued a unique 10-digit alphanumeric PAN Card for the citizens of India as well as NRIs. This card helps in tracking and identifying the financial records of individuals, mostly when transactions go beyond Rs.50000 or more.

A copy of PAN Card is required while you are buying a property, getting a new telephone connection, opening a bank account, doing any investment or making any payment. It is, therefore, must to have a PAN card for yourself if you are still not having it.

Buying and selling property: Buying and selling a property requires a lot of money. So whenever you want to sell or purchase an immovable property of Rs.5 lakh or more, you need to submit a copy of the PAN card.

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Buying and selling of motor vehicle: To sell or purchase any vehicle which does not include two-wheelers including any detachable side-car having an extra wheel, etc. Mostly, when you are buying a motor vehicle for Rs.5 lakh or more, it becomes mandatory to submit your PAN.

Opening a bank account: While opening a fresh bank account, whether in a public, private, co-operative or other bank, you need to mention your PAN details in the application form. After your account is opened, then also you need to furnish your PAN details while depositing Rs.50000 or more in the bank account or while purchasing a bank draft or pay orders for an amount Rs.50000 or more during any day. Even while applying for a credit and debit card you need to provide the details of your PAN card.

Applying for a phone connection: If you wish to have a new telephone connection in your home or for business purpose, you need to ensure that you have mentioned your PAN details in the form while the installation of telephone or a cellular phone is done.

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Travelling and staying in a hotel: Ensure that you are carrying your PAN card along with you because if you are staying in a hotel or restaurant, whether in India or in some foreign country, and your bill exceeds the amount of Rs.25000, then you need to provide a copy of your PAN card. Even while travelling to any foreign country and paying 25000 or more at one time, you need to submit a copy of it.

Deposits in Bank and PO Schemes: A PAN card copy is a must for all deposits and savings. Therefore while investing in a time deposit or depositing in any Post Office Savings Bank account where a deposit is made of Rs.50000 or more, you’re required to furnish your PAN details

Doing Investments: At the time of tax deceleration, people invest a lump sum amount in ELSS fund to save tax. Therefore, it becomes necessary to disclose your PAN details while investing your money in mutual funds, whenever you are purchasing units for Rs.50000 or more.

Make sure whenever you are selling or purchasing securities over and above Rs.1lakh, you need to mention your PAN details.

Payments toward an entity or dealer: If you are making any payment of Rs.50000 or more towards the following, you need to submit a copy of your PAN card.

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a. To a company while buying or acquiring shares, debentures, or bonds issued by them.

b. Towards RBI

c. Aggregate payments done towards paying the premium of Rs.50000 or more within a year for the purchase of a life insurance policy.

d. Doing payments to a dealer of Rs.5 lakh or more or towards a bill of Rs.5 lakh or more while buying bullion jewelry.

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