Importance and use of PAN card, Financial transactions in which PAN card is now mandatory
From January 1, 2005, it has been said that it is necessary to have a PAN card number with any challan, along with it it is also necessary to enter PAN card information with any financial documents or transactions. PAN card is a very important ID card for opening an account in any bank, withdrawing or depositing money or any kind of financial transaction. It is specific, national and permanent and does not change with the change of city or state.
what is pan card? (What Is PAN Card)
PAN card is a unique identification card known as Permanent Account Number. It is said, which is very important in any kind of economic transaction. PAN card consists of an alphanumeric 10 digit number, which is determined by the Income Tax Department. This process comes under the Central Board of Direct Taxes (CBDT). PAN card is an essential card.
What is the meaning of PAN card number? (Meaning of PAN Card Number)
PAN card consists of a 10 digit alphanumeric number, in which each digit has a meaning. And PAN cards are issued under the Income Tax Act 139A.
- The unique number found in the PAN card consists of the first 5 letters alpha-bets, the next 4 characters numeric and the last letter alphabet.
- Of the first 5 alpha-bets, the first 3 are any alpha-bets from A to Z.
- The fourth alphabet is decided according to the rules as follows.
- C for company
- P for person
- For HUF (Hindu Undivided Family) hindu undivided family pan card Read here for.
- F for Firm
- A for Association of Persons (AOP)
- T for trust
- B for Body of Persons (BOI)
- L for local authority
- J for artificial juridical person
- G for government
- The fifth alphabet is the last name of any person, the first letter of the name of a company or organization.
- The last 5 digits are a test number. This is for security.
There is a date embedded in the PAN card, which shows the day on which that PAN card was issued.
What is the importance and use of PAN card? (What is the uses and importance of PAN card in hindi)
The importance and uses of PAN card are as follows-
- to buy or sell property
- to buy or sell a vehicle
- For transactions exceeding Rs.50,000
- To open a new account in the bank
- For transactions of shares amounting to more than 50,000
- for new telephone connection
- For payment to a hotel for an amount exceeding an amount of 25,000
In today’s time, PAN card is an important ID in view of the growing business. It is an ID to give proper details of the income of the person like his regular tax payment.
Some changes like death of a person or closure of the organization are necessary to give proper information to CBDT in time.
What are the benefits of PAN card? (What is the Benefits Of PAN Card)
- PAN card is a beneficial identity card for tax payers.
- PAN card also saves you from tax related hassles.
- PAN card can be used as an identity proof anywhere in India.
- It is beneficial to link PAN card with salary account.
- PAN card is useful in all kind of job part time, full time.
Financial transactions in which PAN card is now mandatory (Financial transactions where PAN card is mandatory)
PAN card is a very useful tool to estimate the total tax revenue generated in the country. Its use only as an identity document is not the priority of PAN card. Expectation of PAN card after the arrival of Aadhar card importance of aadhar card has become more. But PAN card is still important, especially for financial transactions.
This 10-digit alphanumeric number is issued by the Income Tax Department. The Income Tax Department keeps an eye on whatever money transactions are done by every Indian citizen through PAN card, while the main purpose of Aadhaar is to create a centralized database of every citizen living in India. Aadhar card contains the name, photo and biometric data of a person. PAN card number is mandatory for any transaction, Income Tax Department has made it mandatory at some of these places, such as opening an account in a bank, depositing cash in bank accounts, opening demat accounts, land property transactions, securities transactions etc. .
By every Indian person except Central Government, State Government and Consulate Offices use of pan card mandatory. Below you are being told about some transactions, where without PAN card you cannot do any transaction –
- PAN card is not necessary for the purchase, sale of two wheeled vehicles, but while buying or selling vehicles of more than two wheelers, you will need a PAN card for both.
- PAN card is mandatory even while opening an account in any government, private or cooperative bank near you, for this you will have to show the original PAN card, as well as submit a photocopy. Along with this, you will also get a PAN card while depositing money here.
- If you want to apply for a credit or debit card from any bank, then make a PAN card first and then contact the bank for a credit or debit card.
- Those investing in the share market need a demat account, without this they are not able to trade shares. PAN card is also necessary to open this account.
- In any hotel or restaurant, if your bill is more than fifty rupees and if you pay it in cash, then it is not possible without a PAN card.
- If the total expenditure is above 50 thousand while going out of the country, then you need a PAN card at the time of payment. Along with this, even if you buy the currency of that country, you will still need a PAN card.
- Mutual funds are also a type of investment, according to the rules of the government in India, any investment is impossible without a PAN card. Therefore, even while investing money in it, you need a PAN card.
- PAN card is required at the time of transaction for an amount exceeding Rs 50,000 for obtaining debentures or bonds from any company or any institution.
- Bonds are issued by the Reserve Bank of India (RBI), which can be bought by any Indian. If it is more than 50 thousand then you will get PAN card at the time of its payment.
- While purchasing a bank draft or pay order or banker’s check from a banking company or co-operative bank, if the amount exceeds Rs 50,000 is to be paid in cash, then PAN card is mandatory.
- If the amount of more than Rs 50,000 is deposited here, then PAN card is necessary –
- a banking company or a co-operative bank
- post office
- a non-banking financial company
- If you have taken a life insurance policy, then if your annual premium in that company is more than fifty thousand, then you will need a PAN card to fill it.
- If your name is not there in the recognized stock exchange, then while buying and selling the shares, the payment above 1 lakh will be done through PAN card.
- If you deal with any immovable property, meaning that it cannot move from one place to another, such as a house, plot, then PAN card will be applied at the time of registry. If there is a deal less than 10 lakhs then it is not necessary, but more than this transaction cannot be done without PAN card.
- In the budget of 2018-19, the Finance Minister had said that from now on, if there is any money transaction above 5 lakh, then PAN card is mandatory for that. This also includes the purchase and sale of jewelry.
- If someone is not an income tax payer, he can use his parent or guardian PAN card for these transactions.
- Any person who does not have a PAN card and does the above mentioned transactions can give information about it in Form 60.
In this way, many rules have been implemented to make PAN card mandatory. Apart from this, some changes were expected to be made for this in Budget 2017. Highlights of Budget 2017 Read here to know.
New design of PAN card
In the form of Income Tax Department, some changes have been prescribed in the existing design of PAN card. Accordingly, new PAN cards will be issued after incorporating these changes. Please note that existing PAN card holders are not required to apply for a new PAN card. Following changes have been made in the new PAN card-
- The Quick Response (QR) code will be hidden in the PAN card to enable the verification of the PAN card, which will contain the details of the PAN applicant.
- For legends, especially names, father’s name and date of birth are included.
- Changes have been made in the place of PAN and Signature.