PAN – Permanent Account Number Uses
PAN is known as the “Permanent Account Number” which is composed of ten-digit alphanumeric number on a laminated card by the Income Tax Department. This is provided by Income tax department to every income tax payer. PAN is compulsory and required by various authorities while doing financial transactions. This includes filling Income Tax returns, tax deduction at source, or any other communication with Income Tax Department.
Now PAN is one of the mandatory document for opening a new bank account, a new landline telephone connection, purchase of foreign currency, New mobile phone connection, bank deposits above Rs. 50,000, purchase and sale of immovable properties, vehicles etc. Check in detail about various Uses of PAN – Permanent Account Number Uses .
Permanent Account Number Uses
Sale or Purchase
- During the sale or Purchase of automobiles (other than a two wheeler), you will have to give this number.
- When you buy or sell immovable properties (valued at Rs 5 lakh or more) in India, it is necessary to give the PAN card number.
- Purchase of those shares or debentures exceeding the value of Rs. 1 lakh, you need to supply the PAN card.
- PAN card also required for Buying banker’s draft, pay orders and checks.
- For those NRI people it is very easy to buy property or engage in business in India without filing tax returns with the help of your PAN card.
Cash Deposits and Transactions
- Various Deposit exceeding Rs 50,000 with any single banking institution in 24 hours.
For These Payments
- Payment to various hotels or restaurants an amount exceeding Rs 25,000 at any one time.
- For Payment of an amount of Rs 50,000 or more to a company or an institution for acquiring bonds or debentures requires PAN.
- Payment in cash an amount exceeding Rs 25,000 in connection with travel to any foreign country.
- Payment of an amount of Rs 50,000 or more to the Reserve Bank of India for acquiring bonds.
- PAN is essential For payment of direct taxes like:- to file income tax returns, to avoid deduction of tax at higher rate than due and to enter into specific transactions.
- Payment of an amount of Rs 50,000 or more to a company for acquiring shares needs PAN.
- Any mutual fund purchase needs PAN.
- Those Payments exceeding Rs 5 lakh for purchase of bullion and jewellery requires PAN.
To Open Bank Account or as ID Proof
- For initiating a bank account, starting a demat account or applying for a credit card, PAN is needed.
- For opening and operating a minor account PAN card of the guardian is needed.
- PAN card is used as a valid photo ID proof for various occasions. This is sure, dependable, nationally recognized and unchanging. To obtain landline and cell phone connection PAN is very useful.
Benefits or Advantages Permanent Account Number
There are so many benefits that you can enjoy for having a PAN card. As the PAN card carries your photograph, name and address, this serves as a nationally accepted proof of identity. The number is unique to every PAN card holder. So whatever mistakes happen the PAN will remain unchanged. The possibility of misuse is also rare. PAN saves your money because, without a PAN card, you will be taxed at the highest rate possible.