PAN which stands for Permanent Account Number is a 10-digit alphanumeric, issued by the Income Tax Department. PAN card is one of the most important documents vis-à-vis financial transactions. PAN card has many uses and there are certain things which cannot be done without a PAN card. PAN card is necessary for opening bank account, filing Income Tax Returns (ITR), investing in the stock market and so on. You may be asked to submit your PAN card while joining a new company.
PAN card is issued by the Income Tax Department, with the intention of preventing tax evasion by individuals and entities. Tax evasion can be prevented as PAN card links all financial transactions made by an individual or entity (PAN is linked to bank account). In this blog, we talk about various uses of PAN card.
1. Opening a Bank Account:
You must submit PAN card to your bank while opening a new bank account. The bank account can be either savings or a current account, but the PAN card is mandatory. This rule is applicable for all the banks be it public, private or co-operative banks.
2. Sale and Purchase of a Motor Vehicle
PAN card is mandatory for buying and selling a motor vehicle worth more than Rs 5,00,000. It has to be submitted while conducting the transaction.
3. Purchasing Gold Jewelry
You must submit your PAN card details if you want to purchase jewelry worth more than Rs 5 Lakhs.
4. Purchase and Sale of Property
If you are planning to buy, sell or rent out a property in India, you must have a PAN card. While buying property, it’s a must to list the PAN card details of both the buyer and seller, on the sales deed and other documents.
5. While Applying for Debit or Credit Card
It is mandatory to submit the PAN card details while applying for credit card and debit card at the banks and financial institutions.
6. For Making any Investments
You have to submit your PAN card details while making investments above Rs 50,000 in mutual funds, equities, bonds, and debentures.
7. Payment of Insurance Premium
You must furnish PAN card details while making the payment of insurance premium of more than INR 50,000 on life insurance plans.
8. Filing ITR Returns
PAN card is mandatory for filing an Income Tax Return if your income exceeds the exemption limit. Linking PAN to Aadhaar is mandatory while filing ITR.
9. Telephone Connections
You must submit your PAN details, if you want to get a new telephone or mobile connection.
10. Depositing Cash
If you are depositing cash of more than Rs 50,000, you have to furnish the PAN card details to the bank.
11. Fixed Deposits
If you are investing more than Rs 50,000 in the fixed deposit, you must provide your PAN card details to the bank.
If you are planning to avail any kind of loan, it is mandatory to provide PAN details to the bank at the time of submitting a loan application.
13. Foreign Exchange
You must submit your PAN details while converting Indian currency into foreign currency. It can be either at the exchange bureau, bank or institution, where you are converting the money.
14. Identity Proof
PAN card also serves as an identity proof. You can submit it as proof of identity while applying for a passport, voter ID card, driving license, electricity connection and so on.
Hope this blog has helped you to understand the uses of PAN card.
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