Why you need a PAN card?
Posted on: 14/Nov/2016 9:40:44 AM
A Permanent Account Number card or PAN cards has become essential for Indian citizens. It is used by the government to track taxable component in financial transactions.
The government has made it compulsory this year for customers to produce a PAN Card if they buy jewellery worth over Rs 2 lakh. The cap was earlier at Rs 5 Lakh. The move was taken to curb the illegal money from the metal industry as gold believed to be a favourite commodity for black money hoarders to invest in.
Here is a list of transactions you need your PAN card for:
- During purchase and sale of immovable property exceeding Rs 10 lakh.
- While making a time deposit with any financial institution like Co-operative banks and Post Office.
- At the time of opening any form of bank account except opening of a no-frills bank account such as Jan Dhan Account.
- For payment of hotel or restaurant bills exceeding Rs 50,000 at any one point through any mode of payment.
- PAN should be quoted for purchase of bank drafts/ pay orders/ banker`s cheques exceeding Rs 50,000 on a single day.
- Cash deposit exceeding Rs.50,000/- in a single day.
- For purchase of foreign currency or cash payment related to foreign travel exceeding Rs.50,000.
- Payment in excess of Rs 50,000 for purchase of mutual fund units.
- For opening a demat account.
- Purchase or sale of shares of an unlisted company for an amount exceeding Rs1 lakh per transaction.
- Payment exceeding Rs.50,000 for purchase of Debentures/ bonds.
- Payment exceeding Rs.50,000 for purchase of RBI bonds.
- Payment exceeding Rs.50,000/- in a year as life insurance premium.
- Cash payment aggregating to more than Rs.50,000 in a year towards cash cards/ prepaid instruments issued under Payment & Settlement Act.
