The income tax department provides a permanent account number to every income tax payer. If you are planning to buy or sell a vehicle, applying for debit or credit cards, stock market investing as well as converting Indian rupees to foreign currency than the PAN card is a must. Buying and selling any property transaction for the amount exceeding Rs. 5, 00, 000 also requires the permanent account number. Payment to restaurants and hotels against their bills for an amount exceeding Rs. 25 thousand at any one time must submit the PAN Card hard copy, these are all the Uses of Permanent Account Number.
PAN Card permits the government to track all your financial transactions and helps in checking whether your taxes and major financial expenses are consistent or not. 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 and has to file returns.
Uses and Importance of PAN Card
There are many uses of PAN card, read the below points and know about the PAN uses:
The Uses Of PAN card are given Below:-
Proof of Identity: – The PAN card carries your name, photo and address hence it serves as an identity proof. Once the PAN card is issued, it remains valid for the entire life of the PAN card holder also this is valid id proof anywhere in the world.
Opening a bank account: – A PAN card is must in order to open a new bank account, either it is a savings or a current account. All the public, private and cooperative and other banks require submitting of a PAN card to open an account with them.
Sale or purchase vehicle: – If you are planning the sale or purchase vehicle worth more than Rs.5,00,000 then submitting a copy of PAN card is compulsory.
Purchase of jewelry: – If you planning to purchase high-value jewelry for an amount greater than Rs.5, 00,000 then at the time of purchase you have to provide a PAN number.
Applying for a credit or debit card: – If you are applying for a debit card or credit card at any financial organization or any bank than you have to provide your PAN card.
IT Returns Filing: – A PAN card is compulsory for IT return filing. All individuals and non-individuals, entities who are eligible for Income tax are required to file their IT returns.
For Loans: – Loan cannot be obtained without having Pan. If you require getting a loan from Banks and other lending organizations, expect you to submit your PAN card details. All education loans to personal loans also require PAN card details for approved loan.
For Property: – Buy or sell of immovable property valued at Rs 5 lakh or more, requires PAN card proof. In case, if it is a joint property than PAN card details of each person is compulsory.
Telephone Connections: – If you want to get a mobile phone or telephone connection, it is compulsory to submit your PAN details because all telecom companies have been ordered by the Government of India to get PAN details of each candidate for normal or cellular connection to hold a check on terrorism.
Investing in Securities:- Investing in securities is recognized as a good way to build your money. For transactions exceeding Rs. 50,000 for equities, mutual fund, debentures, and bonds, then You have to provide your PAN card details.
Fixed or Cash Deposits: – Any bank requires the PAN card details if you are investing the fund in a Fixed deposit or cash deposit for an amount greater than Rs. 50000. This is far as the bank will deduct TDS (Tax Deductible at Source) on the FD interest amount.
Foreign Exchange: – If you’re planning to travel abroad then you need to carry foreign currency with you. If you make a payment with respect to any foreign travel or for the purchase of any foreign currency at any one time, then you must provide your PAN while making these payments.