Make sure your PAN is error-free! You will need it for these 18 financial transactions
Mistakes in a Permanent Account Number (PAN) card can be anything from your name, date of birth, surname, etc. And, if these informations are not correct, then your further practices like paying tax, bank account, filing for Income Tax Return (ITR) or even earnings will be impacted. An error in PAN can be rectified through your birth certificate, as the card must hold the name as it is in your certificate. PAN is used for a host of services like applying for license, opening a bank account, for investments (like deposits, mutual funds), applying for loans, buying a house or car, applying for passport and many more. Hence, it is very important to note that, the PAN you carry is accurate and error-free.
According to Income Tax Department, it is also compulsory to quote PAN in all documents pertaining to the following financial transactions. Here’s a list of factors, where a PAN is must.!
1. Sale or purchase of any immovable property valued at Rs 5 lakhs or more.
2. Sale or purchase of a motor vehicle or vehicle, (the sale or purchase of a motor vehicle or vehicle does not include two wheeled vehicles, inclusive of any detachable side-car having an extra wheel, attached to the motor vehicle).
3. A time deposit, exceeding Rs 50,000 with a banking company.
4. A deposit, exceeding Rs 50,000, in any account with Post Office Savings Bank.
5. A contract of a value exceeding one lakh rupees for sale or purchase of securities;
6. For opening a bank account.
7. Making an application for installation of a telephone connection (including a cellular telephone connection).
8. Payment to hotels and restaurants against their bills for an amount exceeding Rs 25,000 at any one time .
9. Payment in cash for purchase of bank drafts or pay orders or banker's cheques for an amount aggregating Rs 50,000 or more during any one day.
10. Deposit in cash aggregating Rs 50,000 or more with a bank during any one day.
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11. Payment in cash in connection with travel to any foreign country of an amount exceeding Rs 25,000 at any one time.
12. Making an application for issue of credit card or debit card.
13. Payment of an amount of Rs 50,000 or more to a Mutual Fund for purchase of its units.
14. Payment of an amount of Rs. 50,000 or more to a company for acquiring shares issued by it.
15. Payment of an amount of Rs. 50,000 or more to a company or an institution for acquiring debentures or bonds issued by it.
16. Payment of an amount of Rs. 50,000 or more to the Reserve Bank of India.
17. Payment of an amount aggregating Rs. 50,000 or more in a year as life insurance premium to an insurer.
18. Payment to a dealer,— (i) of an amount of Rs 5 lakh or more at any one time; or (ii) against, a bill for an amount of Rs 5 lakh or more, for purchase of bullion or jewellery.
Therefore, if your PAN is not error-free or you just don’t have this card, then remember that above mentioned services will not be possible for you.
PAN is a very important source of information for both citizens and the government. It is a ten-digit unique alphanumeric number issued by the Income Tax Department, generally in the form of a laminated plastic card, commonly known as PAN card.