One way to look at it is that your PAN card is like your financial fingerprint - Permanent and unique to ONLY you and nobody else. It is an absolute must to prove your identification while presenting certain papers. Plus, it is counted among 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. In simple words, 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.
PAN card is essential for the following situations:
- 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)
- Tor 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
As you can see, a PAN card is a vital document that you need for almost anything and everything. Fortunately, it is easy to apply for a PAN card. So if you know someone who doesn't have one, do inform them at the earliest. If a person who does not have a PAN Card engages in these activities, they must file a declaration in Form 60.
