Permanent Account Number (PAN) number is one of the indispensable parts of your identity. It is a must to have a financial document, which is required to file taxes and do much more. If you want to know about the PAN Card and the reasons why it is vital, then you can go through this article and know more!
What is PAN Card?
PAN Card is a proof of identity and a major financial document, which is issued by the Income Tax Department of India. It helps the Income Tax Department in monitoring all financial transactions of an individual. It also looks for any discrepancies as per the Income Tax Return (IRT) filed. On the whole, it assists in curbing tax evasion.
If you are looking to deposit cash in anyone’s account more than Rs.50,000, buy a car or property, convert Indian rupees into foreign currency and more, you will need PAN.
Let’s know about some reasons why availing a PAN Card is so much important in India. Have a look:
Buying and selling of property
If you are looking to sell and buy a property whose cost is Rs.5 lakh and more, then you will need to provide the details of your PAN Card. In case, if you are buying or selling a property in excess of Rs.5 lakh jointly, then each candidate needs to submit PAN details.
Opening a new bank account
Banks and other lenders want to know about your financial details before letting you open a new bank account. The best way to do that is by knowing all about it with the help of your PAN Card. Thus, having a PAN Card helps in opening a new bank account.
Depositing cash in a bank account in excess of 50000
If you wanted to deposit cash in a bank branch to a friend’s or relative’s bank account number over Rs.50,000, then you will need to furnish your PAN details. It is as per the directives of the Income Tax Department to check any large cash deposits to prevent money laundering and more.
Getting a new phone connection
If you are looking to get a new phone connection, then you may also need to submit a copy of PAN card (especially for a new postpaid connection) along with Aadhaar Card.
Making a jewellery purchase
People keep investing in jewelry for a long-term and short period. However, if you wanted to buy any jewellery that is valued at Rs.5 lakh and more, then you will need to submit PAN details.
If you want to build your wealth, then investing in securities is a good way. Any transaction in excess of Rs.50,000 has to be supported with PAN details. It is also applicable to debentures, mutual funds, equities as well as bonds.
You may require loans at any point of your life. Banks and non-banking finance companies (NBFCs) offer this facility in India as per your needs over a tenor. But you will need to submit your PAN details while applying. All loan types – from personal loans to education loans and other needs the submission of PAN details. If you don’t have PAN Card then you can read this post on how to apply for a pan card online.
Now you are aware of the concept of the PAN Card and its usability while availing so many day-to-day and other services. If you are ready, then it is also possible to apply for a PAN Card online at the website of NSDL. You can fill the form, make payments as well as digital sign the documents or send them via post to get your PAN Card fast.