The PAN (permanent account number) card is a necessary part of any financial transaction today.
It is essential to include PAN details in documents related to the following transactions:
- If valid PAN details are not updated with the bank, tax will be deducted from the interest earned on your deposits at a prevailing rate or 20%, whichever is higher.
- Purchase or sale of the property.
- Sale or purchase of a car.
- A time deposit of more than Rs. 50,000 with any bank and deposit of more than Rs. 50,000 with post-office savings bank. PAN is mandatory while investing in post-office National Savings Certificate.
- Opening demat and trading account
- TDS return to income tax department.
- Cash payment of Rs. 50,000 or more for purchase of bank drafts in a single day.
- Cash payment more than Rs. 25,000 in connection with travel to any foreign country (purchase of foreign currency).
- Application for installation of telephone, including cellular telephone.
- Payment to hotels bills exceeding Rs. 25,000 at any one time.
- Opening a bank account.
- Application for issue of a credit card.
- A cash deposit of Rs. 50,000 or more with any bank in a single day.
- Payment of Rs. 50,000 or more to a mutual fund for purchase of units.
- Minor intending to open time deposit or bank account should quote the PAN of either father, mother or guardian in whose hands income is likely to be clubbed.
How to apply for a PAN Card