PAN card enables the department to link all the transactions of the assessee with the department. It is used in these transactions like tax payment, TDS/TCS credit, return of income, large transactions, correspondence etc.
PAN card is an important document in India. It contains the alphanumeric number, on the basis of which your PAN card and you are identified on the basis of Aadhaar. PAN is nowadays used in many important documents or works. It is used from bank transactions to paying income tax. The central government has also directed to link it with Aadhaar. So that in future it will be more convenient. Today, through this news, we will tell its importance that why PAN card is necessary for us.
PAN card enables the department to link all the transactions of the assessee with the department. It is used in these transactions like tax payment, TDS/TCS credit, return of income, large transactions, correspondence etc. In addition, it facilitates matching of various investments, borrowings and other business activities.
A Permanent Account Number has been made mandatory for every transaction with the Income Tax Department. It is also mandatory for many other financial transactions like opening bank accounts, depositing cash in bank account, withdrawing cash from bank accounts, opening demat account, transaction of immovable properties etc. A PAN card is accepted as an identity card by all government and non-government institutions in the country. Let us understand from some points how they are used.
PAN Card is mandatory for these transactions
1. Sale or purchase of a motor vehicle or vehicle other than two wheelers.
2. It is used for opening an account in a banking company or co-operative bank or for depositing and withdrawing cash.
3. It is also used to take credit or debit cards.
4. Use of PAN is mandatory for any investment like opening an account with SEBI.
5. Cash payment of an amount exceeding Rs.50,000 to a hotel or restaurant against any bill at a time.
6. Cash payment of an amount exceeding Rs.50,000 in respect of travel to any foreign country or payment for purchase of any foreign currency at any one time.
7. It is also used for payment of an amount exceeding Rs.50,000 to a mutual fund for the purchase of its units.
8. Payment of an amount exceeding Rs.50,000 to the Reserve Bank of India for obtaining bonds issued by it.
9. Deposits with any banking company or co-operative bank; In transactions of cash amount exceeding Rs.50,000 in any one day.
10. Cash payment of an amount exceeding Rs.50,000 during any one day for the purchase of bank draft or pay order or banker’s check from any banking company or co-operative bank.
11. In transactions with a banking company, co-operative bank, post office, fund referred to in section 406 of the Companies Act, 2013 in amounts exceeding Rs 50000 or exceeding Rs 5 lakh during the financial year.
