Introduced as essentially a method to find out a person from taxation viewpoint, the PAN card is used for different purposes as well. In this post, let us have a look at conditions where you will require a PAN card in India and why is PAN card significant in India. If you have not applied to PAN then apply for PAN Card Online.
Permanent Account Number is a ten digit alphanumeric number provided by the Income Tax Authorities under the supervision of Central Board of Direct Taxes or CBDT. It is a distinctive number allocated to a person and is compulsory from taxation viewpoint and each individual should have one. The key motive and idea of a PAN card is to check the monetary transactions accomplished by individuals so as to keep record of any illegitimate money laundering and also to ignore tax evasion. However, apart from filling your taxes and providing information of your financial transactions, PAN is needed for a number of other causes as well. So, when will you require a PAN card in India, If you already have PAN but have forgotten the PAN Number, then know your PAN card by name and date of birth.
Benefits of PAN Card in India:
- Filling income tax returns:The most evident and key purpose of getting a PAN card in the primary place.
- Valid identity proof:PAN card is established and used as a valid identity proof in all cases and at all government and non-government paths that need an identity proof like for passport, ration card, voter ID, electricity and gas connection, etc.
- At your work:Your employer will require your PAN when you join any organization for taxation points. Employers subtract taxes at source or TDS, professional tax, etc. Moreover, they require your PAN card to illustrate their outgoings to you in the form of salary when they file their tax returns.
- Getting phone connections:As cellular service providers accept any alternating government issued ID proof, government run operators such as BSNL and MTNL may need PAN information.
- Creating bank account:Banks will need your PAN when you reach them for creating a new account. This is because they have to keep record of all high cash transactions and report once in a while to the RBI as per RBI rules. And, in any case bank accounts include money transactions, so PAN is compulsory when creating bank accounts.
- Cash deposits:If you deposit any cash of Rs. 50,000 and above it, you will be requested to estimate your PAN. Any cash transaction above this price has to be notified to the RBI as a regulation. This is an attempt towards limiting money laundering as well as black money.
- Foreign money exchange for worldwide holidays: You will not get your foreign exchange for your foreign travels if you do not put forward your PAN card copy, even if you have an applicable visa, travel tickets and passport. To get benefit of foreign exchange, PAN card is needed.
- Disbursements at hotels:If you make cash payments of over Rs. 25,000 at hotels and restaurants, quotation of your PAN is compulsory.
- Fixed deposits:When you acquire a bank FD of Rs. 50,000 or more, you will require your PAN card. Banks also need this as they subtract TDS on the interest you gain on the FDs.
- Post office deposits:Just like bank fixed deposits, PAN is needed in case you open post office deposits of Rs. 50,000 or over.
- Share trading:Share tradingis also a place, where you will need PAN card. You will require furnishing your PAN information to your broker, Demat and Trading account provider.
- Investments in mutual fund:Same to shares, when investing inmutual funds you will require a PAN card and extract the PAN for your mutual fund request to be acknowledged.
- Transactions on property:A Property transaction is one more timewhen PAN card is required in India. During the sales action and also at the time of registering the property, PAN of both the purchasers and sellers are needed, or else the transaction cannot be finished.
- Loans and credit cards:Whenever you apply for loans whether itis Home, Personal, Credit cards or Credit Card Loans, etc. PAN card is compulsory. Without it your application will not move forward.
- Buying vehicle:You may be inquired for a PAN card if you are purchasing a luxurious car or automobile in some cases.
As we have seen above, there are various areas where having a PAN card is essential. Areas where PAN card is needed in India have slowly-slowly increased and thus PAN card is significant in India to have and is compulsory in many cases.