Reasons For Having 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.

The card is essential when conducting various banking and post office transactions. For instance, it is one of the most important documents when depositing Rs. 50,000 or more in any account with post office savings bank or a banking company. It is also important when buying bank drafts, orders and bankers cheque in cash form more or equal to Rs. 50,000.

When making certain applications to banks and other banking institutions, the card is also essential. The reason banking institutions ask for this card is to determine whether someone qualifies to get the kind of service they need. The permanent account number is also essential when someone is applying for a credit card from a bank as it is used to determine if you have qualified for such cards.

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 PAN card number should also be included during a sale or purchase of immovable property valued at five lakh. As the buyer, you are required to make sure you get the permanent account number of the person selling such property. In the case when the property is co-owned, you should make sure you get the permanent account number of the people that own such property.

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.

When paying for mutual fund units, you would also be required to show this card. In addition, when you want to acquire company shares via a public means or even acquire institutional debentures, you would also need to disclose the details of your PAN card. People also need to show this card before they acquire bonds from banking 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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