PAN Card is important document issued by Income Tax department to the taxpayer. PAN Card contains 10 digit unique alphanumeric number. PAN card also serve purpose of valid identity proof. However, prime objective of PAN card is to track financial transactions done by tax payer. Income tax department enforced individual to mention PAN card while doing financial transactions. This is to eliminate tax evasion and malpractices like usage of black money.
20 Financial Transaction where quoting PAN card is Mandatory
- You need to quote PAN in case you are doing sale or purchase of immovable property worth 5 lac or above.
- PAN card is mandatory for sale or purchase of any goods costing 1 Lac or above.
- If you are planning sale your car or planning to purchase new car you need to mention PAN number.
- PAN is required for opening bank account. In case you are opening account on the name of minor PAN card of parents is required.
- PAN number is required If you want to deposit 50,000 Rs or above in cash for bank account.
- Quoting PAN number is mandatory if you purchase a bankers draft, pay order or bankers cheque exceeding 50,000 Rs.
- Any payment made to hotel or restaurant exceeding 25,000 Rs you need to mention PAN card.
- PAN card is required in order to apply for new telephone connection including mobile connection.
- You need to mention PAN number while buying financial securities (stocks, bonds, debenture) costing 50,000 Rs or above.
- Payment of 50,000 Rs or above for the purchase of Mutual Funds units.
- Applying for Credit Card or Debit Card.
- You need to mention PAN number if you are making payment for foreign travel exceeding 50,000 Rs or above.
- Quote PAN number if you are making payment of 50,000 Rs or above for the insurance premium payment.
- On purchase of gold jewelry worth 5 lac or above.
- PAN card is required if you want to obtain Sales tax, service tax or Excise registration number.
- Mention PAN number on rent receipt if rent value is exceeding 1 lac in financial year.
- PAN card is required if you are taking Fixed deposit exceeding amount 50,000 Rs.
- You need PAN number for the payment of Tax.
- While Filing Income tax return.
- You need PAN while submitting form 15G/15H.
You must be convinced that PAN card is important document for financial transactions. If you have not got your PAN card follow the steps given in post – Apply and verify PAN card details online.
Points to Remember:-
- You need to mention PAN number only if it is required.
- Avoid mentioning PAN number anywhere else.
- Do not give Xerox copy of PAN card in any other transaction. This is to reduce Benami/Hawala Transactions.
- Avoid use of PAN card as identity proof.
- If you lost your PAN card apply for new card. You can also file FIR to police in order to avoid liability.
Hope you find above information useful. Do share your views on above.