Citizens of India must provide a PAN card in order to prove their identification while presenting certain papers. It is one of the more crucial records required to start a bank account, apply for gas or phone connection, buy a vehicle, apply for a loan, and carry out other such types of financial activities.Basically, it's used to keep track of the money that comes in and goes out of your account, such as when you pay income tax, get a tax refund, or get communication from the income tax department.
The following situations need the use of a PAN card
- when buying a new vehicle.
- when using a financial provider to open an account or make an investment. For deposits of at least ₹50,000 in fixed deposits (FDs), PAN card information is further required.
- to submit a credit card application.
- to open a Demat account with any depository who is registered with Securities Exchange Board of India (SEBI).
- for cash payments greater than ₹50,000.
- for deposits made with banks in cash that total more than ₹50,000 within a single day.
- for payments of life insurance premiums to the insurer that total more than ₹50,000.
- to buy or sell any immovable property valued at more than ₹10,00,000.
- for transactions involving purchasing and selling goods or services other than real estate.
- for a new phone or mobile connection, cellular operators require PAN information.
- information about a PAN card is required for jewellery purchases over ₹5,00,000.
- to start a new business.
- while filing income tax returns.
- while applying for a loan.
A PAN card is a vital document you need for almost everything. If a person who does not have a PAN Card engages in these activities, they must file a declaration in Form 60. Fortunately, it is easy to apply for a PAN card.
Look up more articles here for a smooth first time tax-filing process. All the best!
