PAN card was ushered in a single point of authentication and identification for tax filing.
But its use has extended beyond the paltry list of specifications it began with.
PAN card is one of the most important documents today to have in India.
It’s assumed by the IT department under the guidelines set by CBDT or Central Board of Direct Taxes.
When filing taxes the login consists of using your PAN card details and as such you can’t do without one.
Financial transaction tracking was the primary motive so that tax evasion can be minimized.
Let’s look at the number of things for which you need PAN card now.
1. Filling IT returns: The first but not the only purpose is filing income tax. If you’re filing online the login id itself is your 10 digit pan number.
2. Legitimate ID proof: When I went to open a bank account for the first time I used PAN card as the ID proof. Everywhere it’s accepted in consort of similar documents like ration card, voter ID and gas card.
Clearing cheques in value about 50000: If cheques are both 50000 INR you need to submit PAN card details to clear the same.
3. At your Job: When you join a company as a salaried emloyee your employer may require PAN details from you for TDS return filing and deduction.
4. Clearing cheques in value about 50000: If cheques are both 50000 INR you need to submit PAN card details to clear the same.
5. Opening a Bank account: Banks earlier didn’t require PAN card to open accounts but now it’s a mandatory norm. All accounts that conduct high value transactions have to reported to RBI along with their PAN. This has brought a lot of transparency to the system.
6. Cash Deposits: As I mentioned about cheques before any transaction or deposit above 50000 needs you to quote your PAN and they get reported to RBI as a rule.
7. Payments at Hotels: Hotel payments exceeding 25000 in value would require you to show PAN.
8. Post Office Deposits over Rs. 50,000: If you’re making deposits in post office accounts for a value more than 50000 you need to show PAN.
9. Trading in Shares: Trading shares whether offline or online requires you to create an account with PAN card details.
10. Real estate deals: Real estate a sector where black money is rampant got some organization after making it mandatory to include PAN card details.
11. Loans and Credit Cards: Home loan personal loan and even credit card applications require that you apply with PAN card.
12. Gold purchase: Recently the government has mandated that any and all gold transactions require PAN cards.
There are a lot of instances where showing and sharing PAN card details is necessary.