11 Reasons Why You Need A PAN Card

The Income Tax Department issues Permanent Account Numbers (PAN) to tax-paying organizations which operate businesses within the country. PAN is required to pay tax on income and submit tax returns. This number is used to ensure that individuals don’t evade tax because all financial information of the company are linked to PAN which means that the Department is able to monitor the financial history within minutes. To ensure that PAN more secure and fully evidence, the government has mandated linking PAN together with Aadhaar. This would make sure that counterfeit PAN cards are eliminated from the system, and only authentic PAN cards are active.

There are many items for which PAN is now mandatory.

See Also : How to link Pan with Aadhar

Let’s look at the top 11 reasons why you should get PAN cards: 1. Identity Proof

PAN is a valid option to use to prove identity since it comes from the federal government, and it contains the photo and signature of the person who is using it. It is however, PAN cannot be used as proof of residence since addresses of PAN card holder isn’t listed within the PAN card. It is possible to use the PAN for travel on train, air travel or hotel bookings.

2. Paying Taxes

Companies, individuals, partnerships, companies or any other entity conducting activities in India and earning a profit from it must pay income tax to the government in case they fall within the taxable income bracket. PAN is required to be provided for the purpose of paying taxes. Even if you don’t belong to the tax-deductible earnings bracket, it is mandatory to are required to file tax returns for income and PAN must be provided in this situation.

3. For the Employer

You must provide your employer with your PAN to allow them to be able to deduct TDS (Tax At Source). They also require your PAN to prove the transfer of your salary into your account in order to file tax returns for income. The PAN will also required to establish your EPF account, which is a retirement account which is shared equally between the employer as well as the employee. You also must get your e-KYC completed by sending in your PAN as well as your Aadhaar for the purpose of being able to access online services through EPF’s member portal. EPF members portal.

4. Opening a Bank Account

In accordance with the latest guidelines set down in the RBI, PAN has been required to open bank accounts. In addition, individuals must join existing bank accounts using PAN. In addition, the government also made it compulsory to offer Aadhaar card to open the new account at a bank. Customers also are required to connect their bank accounts that they already have with Aadhaar. The deadline to link Aadhaar to account at banks was extended from the Supreme Court as of now.

The PAN card must be provided in order when applying for an additional credit card or when obtaining loans. The lender uses to check the PAN of the person applying to determine the credit score to authorize and sanction the loan.

5. Cash Deposits over Rs. 5 lakh

One must present his PAN when making a deposit greater than Rs 50,000 on his or her other bank accounts. RBI is required to be informed of all transactions that exceed the specified limit. This will assist the government stop money laundering and the creation of black money. A person must provide his PAN for transactions that exceed the amount of Rs. 50,000 when purchasing any item. PAN is also become required for purchasing or selling bullion jewellery valued at five lakhs or more.

6. Buying/Selling Properties

Immovable and real estate are a popular investment choice for black money hoarders since they can store their massive amounts of money in safe places and avoid tax authorities. So, if you wish to buy or sell a home worth over Rs 5 lakh and you are required be required to present you with your PAN card. This permits the government agencies to keep record of large-ticket transactions made by individuals or organizations. If the property is purchased or sold in joint capacities each party must present their PAN card when making a purchase.

7. Buying/Selling of Vehicles

You also must provide your PAN whenever you take a four-wheeler into your residence. PAN is mandatory for purchase of cars that cost more than 5 lakhs. At present, PAN has not been obligatory for buying two-wheelers. Autos and SUVs are among the second most sought-after option for investment for black money hoarders. This move taken by the government will aid in tracing the most valuable transactions.

8. Stay at Hotels/Resorts

Anyone staying in the hotel must show his PAN card in the event that the total amount billed at the hotel is greater than the limit of Rs.25,000. In case of any bill that exceeds the limit prescribed, whether in India or elsewhere, PAN has to be supplied.

9. Vacation or travel

It is possible that you will enjoy traveling in or out of India. If you’re planning a luxurious trip you’ll need to provide your PAN to ensure that your total expenditure per day is greater than the limit of Rs.25,000. RBI would like to be informed whenever a tax payer exceeds the threshold to keep track of the transactions involving money of the individual.

10. Investment in Mutual Funds

ELSS as well as a variety of other tax-saving mutual funds let investors make profits and also lower taxes in the process. Government has now made it obligatory to offer PAN when carrying out transactions of more than Rs 50,000. If you intend to sell or buy securities, you must give your PAN when the transaction is more than the limit of 1 lakh.

See Also : How to apply PAN card online

11. Investment in Share Market

Investors who plan to invest their funds in the market for shares must present their PAN cards to establish an account for trading. There has not been any relief offered for applicants regarding the maximum amount of money that can be put into the accounts. If you fail to give your PAN when opening the account Your application is rejected by the authority, and you won’t be able to conduct transactions on your account.

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