PAN card has special importance in everyday life. This is an important document. It is required at many stages related to the transaction. it’s mandatory. After the fixed limit, you have to provide a copy of your PAN card or details for many types of transactions. If you do not do this, there is every possibility that your transaction may get stuck. PAN is a 10-digit alphanumeric unique code allotted to every taxpayer by the IT department as per the guidelines prescribed by the Central Board of Direct Taxes (CBDT). When you apply for PAN, you receive a laminated plastic card bearing your unique 10-digit identification number. The PAN of two taxpayers can never be the same. Let us know when it is necessary for you to give PAN card details.
- On sale or purchase of vehicles other than two-wheelers.
- On opening of an account in any banking company or co-operative bank other than specified fixed deposit and basic savings bank deposit accounts.
- When applying for a credit or debit card.
- To open a demat account with any depository participant, custodian of securities or anyone else with SEBI.
- On making lump sum cash payment of more than Rs 50,000 for hotel or restaurant bills.
- On making lump sum cash payment of more than Rs 50,000 in connection with travel abroad or purchase of any foreign currency.
- Payment of more than Rs 50,000 to buy units of a mutual fund scheme.
- On payment of more than Rs 50,000 to any company or institution for purchasing its debentures or bonds.
- A sum of Rs 50,000 or more has been paid to the Reserve Bank of India for acquiring its bonds.
- More than Rs 50,000 cash is being deposited in a day in any bank including a co-operative bank.
- Cash payment of more than Rs 50,000 in a day against bank draft, pay order or banker’s check from any banking company or co-operative bank.
- On fixed deposits of Rs 50,000 or aggregate of Rs 5 lakh or more during a financial year with any banking company or non-banking financial company, co-operative bank, fund (Section 406 of the Companies Act, 2013), or post office.
- Payment by way of cash or bank draft, pay order or banker’s check which is equal to or exceeding Rs 50,000 in a financial year to one or more pre-paid payment devices. These are as per the guidelines on prepaid payment instruments which are issued by RBI under Section 18 of the Payment and Settlement Systems Act 2007. It is given to banks, co-operative banks or other companies or institutions.
- An insurer has to pay a life insurance premium of more than Rs 50,000 in a financial year.
- Payment of Rs 1 lakh or more per transaction for sale or purchase of securities (other than shares).
- On sale or purchase of shares of an unlisted company by a person for an amount exceeding Rs 1 lakh per transaction.
- Payment of Rs 10 lakh or more on sale or purchase of any immovable property or if the value of the transaction exceeds Rs 10 lakh by the stamp valuation authority specified in section 50C of the Act.
- PAN card details are mandatory if payment of Rs 2 lakh or more is being made on the transaction of sale or purchase of any goods or services. Additionally, the government has now made PAN or Aadhaar mandatory for cash deposits and withdrawals in banks, cooperative banks and post offices if the aggregate value exceeds Rs 20 lakh in a financial year.
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