Why You Need A PAN Card

By Jamal D White


A PAN card is an essential document for a variety of reasons. The card; mostly a ten-digit alphanumeric number issued by the income tax department is crucial when filing tax returns and conducting various transactions that requires one to identify themselves. Anyone who has this card can use it for a variety of purposes.

One occasion when this card comes in handy is when making post office and bank transactions. For instance, the disclosure of this card is essential before you make a time deposit of equal or more than fifty thousand rupees to a bank. The disclosure of this card is also essential when making a cash payment of equal or more than fifty thousand to purchase orders, banker's draft or cheque.

It is also important when making money-related applications to banks and other institutions that deal with money transactions. Most institutions need this card to evaluate anyone applying for their services to determine whether they are eligible for the service that they are applying for. It also enables banking institutions to determine if someone is eligible of getting a credit card from their institutions or not.

The card should also be disclosed in the case of paying for foreign trips that charge more than twenty five thousand rupees. This is usually in form of cash and it essential when paying for the tour expenditures or purchasing foreign currency. The disclosure of the card details is also essentials when paying hotel and restaurant bills exceeding twenty five thousand.

The card is also essential when someone is looking to sell or buy immovable property valued at an amount equal or more than five lakhs. The moment you decide to buy immovable property, you would need to make sure you get the permanent account number of the seller. Before you pay for a co-owned property, you would also need to make sure you get the PAN of all the owners.

When selling and purchasing vehicles, the PAN is as well important. However, it is not mandatory when buying a two-wheel vehicle or vehicles used in factories and other enclosed premises. This is mostly because most of these companies would have already set ways in which they cater for their taxes. In addition, most of them would have already established their reputation hence no need for identification.

You would also need the card when making payments for purchase of units of mutual fund. Before acquiring company shares through public issue or debentures of an institution or company, people would also need to show this document. It is also a mandatory when acquiring bonds from banks and other financial institutions.

It is also one of the main essential documents for anyone looking to install telephone connections. This can be either connections related to cellular phones or other phone systems. The reason for using the PAN card is to make sure that issues of fraud and tax evasion are kept as low as possible. It also ensures the people making the transactions can be sure of obtaining positive results from such transactions.




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