A PAN Card is compulsory in India for a number of transactions. Permanent Account Number or PAN has to be quoted when a transaction for property takes places. Here are eight other places where PAN card is needed in India.
Banks will insist on PAN Card for new accounts
PAN card is necessary when you open a new bank account. One cannot be sure if the norm is applicable also for the weaker sections. For example, the recent Pradhan Mantri Jan Dhan Yojana where millions of bank accounts were opened, may have seen banks not insisting on PAN Cards.
When buying or selling a property
You cannot buy and sell property without this document. In fact, TDS is now compulsory to be deducted by the seller and deposited with the authorities if the property value is in excess of Rs 50 lakhs, for which a PAN card is a must.
When buying vehicles
When you purchase a vehicle you would need the document for registration purpose. Cars can be high value purchase and would need a PAN card.
Hotels payment exceeding Rs 25,000
Hotel Payment exceeding Rs 25,000 needs a PAN card. Whether the norm is strictly adhered to by some of the hotels is difficult to say.
Needed if jewellery cost exceeds Rs 5 lakhs
PAN card is also needed for jewellery purchase in excess of Rs 5 lakh.
Bank may ask on large deposits
If you open a fixed deposit in excess of Rs 50,000 you would need a PAN Card. Large cash deposits may also require a PAN card.
PAN Card for new phone connections
The telecom operator may insist on your PAN Card for a new telephone connection.
While dealing in securities
The norm is that if you purchase shares in excess of Rs 50,000 you would require a PAN card. However, without a PAN card it is unlikely that any broker would accept your application to open a broking and a demat account.