Why You Must Have an PAN Card

PAN (Permanent Account Number) is useful in number of ways and it is requisite compulsory for some of yours financial dealings. With the government of India's intiatives and legal reforms, this particular card has become more crucial than ever before regarding various legal and financial dealings. Here we bring to you, some of the ways why your PAN card may be crucial and rather useful:

Bank Fixed Deposits

While depositing any amount in excess of Rs. 50,000 in the private banks, a copy of the PAN card needs to be submitted with the rest of the documentation. This will then ensure that the bank issues a TDS certificate and also deducts 10% TDS or whichever rate is legally relevant. On failure to provide for a PAN card copy, one will not get the TDS certificate and also the slab for tax deduction is higher at 20% of the amount. Even Form 15G or 15H will not help in saving taxes in this case. 

Payments in Hotel and Restaurants

For any bill amounting to Rs. 25,000 and above, you will have to submit a copy of the PAN card, whether the payment is in cash or by credit/debit card. 

Payment to travel agents

If you are thinking of a foreign tour, or plan to exchange a large volume of foreign currency in a single transaction, worth over Rs. 25,000, then a copy of the PAN card needs to be submitted. 

House Renting

While renting personal space for residence or even for commercial purposes, the landlords usually ask for a copy of the PAN Card as primary identity proof, and other details. 

Jewellery purchases

Everytime one purchases jewellery above a certain value from any jewellery store, one would have to produce a copyt of the PAN Card. this move has been taken to ensure that black money doesnt start flowing into the system. 

Bank Finance

When you approach banks for home loans, mortgage loans , they ask you for Income tax return. The question of Income tax return does not arise when you don’t have Pan Card.

Some of the other important uses of the PAN card includes payment in 2nd hand car dealings, installation of telephone,  visa facilitation centres.