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KNOW THE BENEFITS AND IMPORTANCE OF HAVING A PAN CARD
PAN (Personal Account Number) is a 10-digit unique identification alphanumeric number assigned to every Indian taxpaying entity, be it an individual or a business. All tax-related details of a person or business are recorded against a single PAN which means, no two entities can have the same PAN. With your PAN card, the Income Tax Department keeps a record of all your major financial transactions and tracks the inflow and outflow of your money. The IT department uses these details to assess an individual’s tax liability.
Who should apply for a PAN card?
Any Indian citizen who earns a taxable income in India.
A foreign national who is liable to pay taxes in India.
Any business owner with total sales, turnover or gross receipt more than Rs. 5,00,000/- in the previous financial year
The process of submitting a PAN card application is very simple. You can go to the official website of NSDL or UTIITSL and apply online.
There are quite a few benefits of having a PAN card. You will need one in the following situations:
Filing IT Returns: Having a PAN card is necessary while filing your Income Tax returns. It is also the primary reason for applying for one.
Opening a Bank Account: You will need a PAN card to open a new bank account. Whether you are opening a savings or a current account, every bank needs you to submit one.
ID Proof: This serves as valid identity proof. Since it is issued by a government department, it is accepted by all financial institutions and other organizations.
To Claim Income Tax Refund: Sometimes, your employer the TDS amount deducted from your income is more than the actual tax amount you need to pay. In such cases, you will get a refund on the excess amount. To claim your IT refund, you will need a PAN card.
Tax Deductions: Every individual must have a PAN card for taxation purposes. If you do not have your PAN linked with your bank account, and the amount of annual interest earned on savings deposits is more than Rs. 10,000/- you will have to pay 30% TDS instead of 10%.
To Open a Demat Account: A Demat account holds your shares in dematerialized form. To open one, you will need a PAN card.
Buy and Sell Immovable Assets: One of the main advantages of having a PAN is, you can buy or sell an immovable property that has a total value of Rs. 10,00,000/- or more.
Making Investments: If you are planning to make some investments, you will need PAN details for transactions amounting to Rs. 50,000/- or more. This applies to all investment options including equity shares, mutual funds, bonds, debentures etc.
Hotel and Restaurant Bills: If your total bill exceeds Rs. 50,000/- then you will have to give your PAN card.
Purchase or Sale of Goods and Services: A PAN card needs to be given at the time of purchase or sale of any goods or services for an amount of Rs. 2,00,000/- or more.
Bank Drafts, Pay Order or Banker’s Cheque: You will need it for Bank Drafts, Pay Orders and Banker’s Cheque with a transaction of Rs. 50000/- or more.
Foreign Travel: When you plan a foreign trip and need to make a cash payment of an amount more than Rs. 50,000/-, a PAN card is required.
To Buy or Sell a Motor Vehicle: You will have to provide your PAN details while buying or selling a motor vehicle that has a value of more than Rs. 5,00,000/-.
Is it important to link your Aadhaar Card with PAN?
Yes, it is mandatory for every individual to link his/her PAN card with the Aadhaar card. It ensures that no users have multiple PAN cards issued under their name.
Having a PAN Card has become mandatory now for your day-to-day transactions. Every Indian taxpayer should have one for taxation purposes. Other than tax filing, it serves a few other purposes as well.
Planning to apply for a PAN CARD online? At Muthoot Finance, we provide a fast and hassle-free e-filing process at 5330+ branches. Visit your nearest Muthoot Finance branch to know more.
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