Until now we have been focusing on Aadhaar and its importance seeing the government's push to make it everywhere from availing subsidy on LPG to scholarship to filing ITR. It was also in the news in a leading news that seeing the importance of Aadhaar, PAN can lose its significance in not so distant future. But as against, the move will not be so instant a step, as PAN has over the years gain its own importance in the financial matters in India.
With the tax department, PAN is a must document that is to be enclosed and shown with each work. There are other transactions also which require quoting of PAN. Here goes the list.
1. Sale or purchase of motor vehicles other than two-wheelers
2. Bank account opening - Until it's the case of a term or time deposit with the bank or a basic savings account, all other account opening needs a mandatory PAN proof.
3. Demat account opening also requires PAN whether it be with a custodian, brokerage house or other.
4. When applying for a debit or credit card also PAN is required as an essential document.
5. If the payment in cash exceeds the sum of Rs 50000 to a restaurant, for purchasing foreign currency or for travel in any foreign country then also PAN is to be quoted.
6. Mutual fund purchase of value over Rs. 50000
7. Bond purchase from a issuing company of value worth or from RBIover Rs. 50000
8. Deposits in excess of Rs. 50,000 which are made to the bank or cooperative banks in any one day or if it exceeds the value of Rs. 2.5 lakh during the demonetisation period.
9. Bank drafts or banker's cheque or pay order valuing over Rs. 50000 in any one day if purchased from a financial entity also requires PAN.
10. For term deposits of Rs. 50,000 or Rs. 5 lakh in a financial year also needs to be supported by PAN
11. For life insurance premium if it values over Rs. 50000 in a financial year.
12. For each transaction of over Rs. 1 lakh that involves purchase or sale of securities other than shares
13. In case of unlisted shares purchase and sale, PAN is to be strictly if the transaction values Rs. 1 lakh and more.
14. For immovable property purchase of value over Rs. 10 lakh
15. Sale or purchase of any commodity not listed hereforth of value over Rs. 2 lakh in a single transaction