The importance of PAN card in India is so much that today every financial transaction requires a PAN card. It is an essential pre-requisite if you are looking to buy a property, opening a bank account, investing in mutual funds, stocks, etc. A PAN is an inseparable part of an individual’s life. It not only keeps a tab on all financial transactions of an individual but it also helps find out any income drop from the ITR filed by him. This article delves deeper and fetches out 17 reasons why you need a PAN card.
1. To open a bank account: A PAN card is essential to open a new bank account in any of the private, public, co-operative and other banks. You are also required to mention your PAN Card details when you apply for a debit or credit card and also in every financial transaction you make of Rs. 50,000 and above in your bank account. A PAN card is also required in every demand draft or purchasing an order of Rs. 50,000/- & above at any day. Moreover, a PAN card is also required while applying for a credit or a debit card.
2.New phone connection: Those planning to get a new phone connection either for home or business must furnish their PAN card details at the time of phone installation. In addition to this, the Government of India has also mandated every individual to link their PAN details with their mobile numbers to avail uninterrupted telecom facility. These amendments are made to put an end to extortion cases and terrorist activities.
3.Investments: A lot of people invest in mutual fund, share, bonds, etc., which again requires PAN card mandatorily. PAN details are necessary even when you are purchasing units, making an investment, paying a company, institution or RBI to acquire bonds or debentures issued by it of amount exceeding Rs. 50,000/-. In addition to this, you are also required to furnish your PAN when you are buying and selling shares of an unlisted company for an amount above Rs. 1 Lakh per transaction.
4.Selling and purchasing of motor vehiclev: A Permanent Account Number is essential when buying and selling of all motor vehicles, i.e., four-wheelers.
5.Travelling: For many people, it may come as a surprise but the fact is you need a PAN card while traveling as well. Cash payment in connection with foreign travel or purchase of foreign currency of an amount over and above Rs 50,000/- at any one time (including fare, payment to travel agent) will require your PAN details. A PAN card is equally important while traveling within the country as well. So next time you plan your trip, don’t forget to carry your PAN along.
6.Hotel accommodation: A PAN card is required when you check in at some hotel or restaurant in India or abroad and your payment in cash exceeds to Rs. 50,000/-, providing your PAN details, in this case, is a must.
7.Payment made towards an entity or a dealer: PAN details are also required when making a payment exceeding Rs. 50,000/- to a dealer, entity or company to acquire any shares, bonds, and debentures issued by them. Moreover, a PAN is also essential if you are making a payment of Rs. 5 lakh for the purchase of gold jewelry. On top of it, any payment made towards RBI also requires you to furnish your PAN card.
8.Opening account with share broker: A PAN is essential while trading in the stock market. If you fail to provide your PAN detail, chances are that your application may get rejected.
9.While applying for Loan: Banks and other lending institutions do ask for a PAN card when you apply for the loan. It can be any loan be it an education loan, personal loan, home loan or any other.
10.To get a debit card: In order to get a debit from the bank, providing a PAN card detail is a must. Not mentioning your PAN card details will lead to application rejection. Also, it will reduce your chances of getting a loan/credit card from that bank in future.
11.To get a credit card: A PAN card is also essential while getting a credit card from any bank or lending institutions. Any negligence here would lead to application rejection.
12.Buying and selling of property/immovable asset: As buying and selling of property or immovable asset requires a lot of money. This is why the government has made is essential for the person to provide their PAN card details if they want to sell and purchase any property worth Rs. 10 lakh or more. In case the property you are planning to buy or sell is on the shared basis or is a joint property, the PAN card of each property shareholder is required.
13.In fixed deposits: Fixed deposits with banks, post offices, Nidhi or NBFCs will require PAN card. Deposits of amount more than five lakh rupees during the financial year will also require PAN card.
14.In cash deposits: Likewise fixed deposits, if you are making a cash deposit in your account of Rs. 50,000/- or more, submitting a copy of PAN card is a must.
15.Gold jewelry/bullion purchase: PAN is required if you are purchasing a jewelry of worth Rs. 2 lakhs or more.
16.Insurance payment: A Permanent Account Number is also required while making an insurance payment to an insurance company for the amount which is over and above Rs. 50,000/- per annum.
17.PO schemes: Submitting a copy of your PAN card is essential if you are depositing money of Rs 50,000/- and above in time deposits or in any post office savings account.