Significance of PAN Card: Where all it is required

Whether you are going to buy a car or property or making an investment in the stock market, opening a bank account, or doing currency conversion, one thing that is mandated to provide for each of these activities is your Pan Card details. It is a permanent account number, issued by the Income Tax Department.

The objective of introducing the Pan Card

The Pan card was issued to prevent tax evasion by individuals and entities as it links all financial transactions made by a particular individual or entity. It is the way through which the Income Tax department keeps a record of all the major transactions of every citizen of India for tax purposes.

Who all are liable to file the Pan application?

·        Indian citizens who are residents of the country

·        NRI (Non-Resident Indians)

·        OCI (Overseas Citizen of India) cardholders

·        PIO’s (Person of Indian Origin), as well as foreigners who come under the purview of the Income Tax Act of 1961, are eligible to file Pan application.

·        Firms and companies, governments, and minors too can apply for a PAN card.

In what situation a person or a company is required to share the Pan Card details?

At the time of filing ITR: All individuals and entities who are eligible to file ITR are required to share Pan Card details.

Act as identity proof: PAN card is accepted as valid identity proof anywhere in the country, and as proof of age too. It is used as proof of identity when making an application for documents such as passport, voter ID card, driving license, electricity connection, etc.

At the time of opening a bank account: A Pan card is required at the time of bank account opening as per RBI policy, be it is a savings or current account. All banks, public, private, and Cooperative banks ask for the Pan card details to open an account.

Selling or purchasing a motor vehicle: If you wish to buy or purchase a motor vehicle whose worth is above INR 500,000, then it is a mandate to provide PAN information.

When you apply for Debit or Credit Card: At the time of applying debit card or a credit card, it is a mandate to furnish PAN details otherwise bank rejects the application.

At the time of purchasing jewelry: When you are going to purchase jewelry whose worth is above INR 500,000, then also PAN Card is required.

At the time of filing a loan application: If you were required to take a loan, all loan providers, both banks as well as lending institutions, required you to submit details of your PAN at the time of filing the loan application. All loans, from education loans to personal loans require PAN details for the loan to be approved.

Foreign Exchange: If you are traveling abroad and looking to convert your Indian currency into foreign currency, you are mandated to share your PAN details at the money exchange bureau/bank/institution.

Property:  Whether you are buying, selling, or renting a property in India, PAN card proof is required. In the case of buying property, the PAN details of the buyer, as well as the seller, should be part of the sales deed and any other such documentation for the sale to be complete.

Cash Deposits: If you are making a cash deposit of  Rs. 50, 000 at a time, you are required to submit your PAN details according to the RBI mandate. It is a way to prevent money laundering.

Endnote

If you are planning to do any of the above activities and you are not having a PAN Card. Then file a PAN application at the earliest to perform all these activities in a hassle-free way.