Why Having a Pan Card is so Important?

Posted by Alankit UK on January 21st, 2020

The major objective of the PAN Card is to prevent tax evasion by individuals and business entities as it links financial transactions made by individuals and entities. The Income Tax Department has a detailed record of all transactions above 50,000 and above for tax purposes.

PAN Card serves many purposes besides just being a way to prevent tax evasion and track monetary transactions.

Below explained are the uses of PAN Card:

Making Investments: Investing in securities helps to accumulate wealth over time. People who consider investing in securities must furnish their PAN details for any financial transactions worth INR 50,000 and above. This also covers mutual funds, equities, debentures, etc.

IT Returns Filing: All individuals and business entities eligible for Income Tax should file their IT Returns. A PAN Card is a necessary document and is primarily used by individuals as well as other entities for filing IT Returns.

Proof of Identity: As a unique alphanumeric code issued to every individual, PAN Card serves as an authentic identity proof and is also considered as age proof. While making an application for Voter ID Card, Passport, Electricity Connection, and Driving License, PAN is used as proof of identity.

Opening a Bank Account: PAN Card plays a vital role in order to open a bank account. All banks, whether private or public require applicants to furnish their PAN Card details.

Buy or Sell of a Motor Vehicle: Individuals who intend to buy or sell a motor vehicle valuing more than INR 5, 00,000 will have to provide their PAN Card details while conducting the transaction.

Foreign Exchange: If you plan to travel abroad and wish to convert your currency into another so it is impotent to have Pan Card for NRI, PAN details are mandatory to be provided at the money exchange bank/financial institution where you intend to convert the currency.

Purchase of Jewelry: As mandated by regulations, the purchase of jewelry valuing for over INR 50,000 requires PAN Card deals.

Property: If you are a NRI and want to buy, rent, or sell property, so it is important to have a Pan Number for NRI as a proof. PAN details are important for documentation for the sale and purchase.