PAN Number is a ten-digit unique alphanumeric number issued by the Income Tax Department. PAN enables the department to identify/ link all transactions of the PAN holder with the department.
After demonetization, the Government is committed to curbing the circulation of black money and widening of tax base. Now for almost every transactions, PAN card is a must. Everyone dealing with cash needs to produce PAN card details.
For the sale or purchase of any goods or services by card or cash exceeding Rs 2 lakhs. So make sure when you undertake these transactions or you are planning to undertake, you are carrying your PAN Card along.
2. Immovable property
Sale or purchase of immovable property worth and over Rs 10 lakhs. Any of the properties that are valued by Stamp Valuation authority and exceeds Rs 10 lakh needs PAN card during the transaction. The earlier limit was 5 lakhs.
3. Eating outside
Any bill payment at a restaurant or hotel that exceeds Rs 50,000 needs PAN card. Understanding PAN Cards
4. Bank account
PAN card has to be furnished for opening all types of bank accounts, except a basic Savings bank deposit account. PAN card is not required for Jan Dhan accounts.
5. Other accounts
For opening an account with cooperative banks PAN is mandatory. Users need PAN card for opening a Demat account.
Buying bullion or jewellery costing Rs 2 lakhs or more for each transaction. From January 1, 2016, this amendment came into effect.
An individual need to mention his or her PAN card, if he/she make cash deposits of more than Rs 50,000 a day with banks. Post demonetization, deposits made between 9 Nov and 30 Dec 2016 will require a PAN if the combined sum of deposits exceeds Rs 2.5 lakh. This clarifies the misconception that one can deposit cash in multiple batches of less than Rs 50,000 each and escape mentioning the PAN.
8. Post office deposits
Before, PAN was mandatory for booking a Time Deposit exceeding Rs 50,000 with a bank or with a Post Office. The rule on deposit exceeding Rs 50,000 with Post Office Savings Bank has now been relaxed. But, still, customers need to quote PAN for all post-office time deposits. Deposits aggregating to more than Rs 5 Lakh during the financial year will also need PAN.
9. Bank drafts
You have to quote PAN if you carry out transactions of bank demand drafts, pay orders and bankers cheque of exceeding more than Rs 50,000 during a day.
10. Mutual funds
If you buy mutual fund units worth above Rs 50,000, PAN card should be mentioned. How To Get PAN Card Within Two Days?
11. Foreign travel and currency
Payment done in cash for foreign travel costing more than Rs 50,000 at any one time needs PAN. Cash payment in connection with foreign travel or purchase of foreign currency of an amount exceeding Rs.50,000/- at any one time (including fare, payment to a travel agent). You need to produce PAN card details for buying foreign currency worth more than Rs 50,000 a day.
Employees who declare HRA of above Rs 1, 00, 000 a year will be required to submit their landlord's PAN details when claiming the exemption. For doing this the employee is required to submit a form, known as the PAN Card Declaration from Landlord along with the tax exemption claim form.Employees who declare HRA of above Rs 1, 00, 000 a year will be required to submit their landlord's PAN details when claiming the exemption. For doing this the employee is required to submit a form, known as the PAN Card Declaration from Landlord along with the tax exemption claim form.
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14. Insurance premium
Any payment as a premium of over Rs 50,000 per year for a life insurance policy needs to quote PAN card details. Life insurance premiums may vary on the plan and premium amount, as preferred by the policyholder.
15. Buying shares
If buying or selling shares of a company that is u not listed on the stock exchange and each where a transaction is more than Rs 1 lakh.
16. Motor vehicles
When purchasing a four-wheeler, the individual will have to produce a PAN card. A person selling his four-wheeler is also required to produce his or her PAN card. This is not applicable for two-wheelers though.
17. Cards and wallets
When applying for a credit or debit card people need to provide PAN card details.If you carried out transactions more than Rs 50,000 per year on Prepaid Money wallets and gift cards, you need to give PAN card details.
18. Tax return
In India individuals whose total income during the previous year exceeds the maximum amount not chargeable to tax, should file their income tax returns. When filing your Income Tax Return, it is mandatory to quote PAN card details. For transactions which require deduction of tax at source (TDS) also we have to mention PAN details.
VAT and taxes
You need to produce PAN card, while registering under statutes like Excise Duty, Service Tax, Value Added Tax, etc.
PAN is required for the validation of new customers registered online under the National Pension System (NPS) scheme by the Pension Fund Regulatory Body (PFRDA). Top 10 Companies That Will Be Most Affected By H1-B Visa Rule