Importance of PAN Card – Know Why PAN Card is Necessary for Indians

PAN Card is Permanent Account Number card, which is issued by the Income tax department, so that  an individual can pay their taxes and file for income tax returns, on time. With the help of this PAN card, individuals can also keep track of their financial records online. PAN card consist of a unique 10-digit alphanumeric number, where each and every digit has its own significance. This PAN card can also be used as a photo identification proof, while opening a bank account or getting a loan. The importance of PAN card increases day by day and it is mandatory for Indian citizens who have income, to have this PAN Card.

In this article, we are going to discuss about the Importance of PAN card and why is this an essential document, in today’s world.

Importance of PAN Card –  Why It is Important For Us: 

  • Opening a Bank Account:

When an individual is deciding to open a bank account, it is mandatory for providing the PAN card, so that they can keep track of our financial status and to deduct Income tax or to make returns, if any.

  • For Getting a Loan:

If we are thinking about getting a loan like Education loan, Personal loan, Housing loan or vehicle loan, it is essential to provide the PAN card details to the bank. This is followed in almost all banks, so that the chance of absconding is not possible. If any individual, is not paying the loan, then they will not be able to apply for another loan, until they settle their previous loan.

  • Applying for Credit or Debit Card:

Nowadays, almost all Indian citizens are very familiar with the Credit and Debit card, issued by the bank to its account holders. If any individual, is not having a Credit or Debit card and they are thinking about applying for one, then it is essential for them to submit their PAN card as a proof of identification.

  • For Insurance:

It is mandatory for individual who are insurance policy holder, to provide their PAN details, when they want to make a premium payment to insurance companies, worth more than INR 50,000 per year.

  • Purchasing Movable Properties:

PAN card is also required when we purchase two wheeler or four wheeler vehicle, which costs over INR 5 lakh.

  • Buying or Selling Immovable Properties:

Whenever we purchase or merchandise, immovable properties like house, shop, etc., which has a value more than INR 5 lakh, we will be required to provide PAN card copy, while registering. In addition to this, if we are planning to purchase a joint property, then PAN card copy of both persons should be provided.

  • Purchasing Jewellery:

The same rule while we purchase for movable and immovable property should be followed while purchasing jewellery, as well. If we are going to purchase jewellery which is worth more than INR 5 lakh, then we have to provide our PAN card, while billing.

  • Deposits:

There are various deposits under various schemes, that benefits us by providing various interest rate. However, there are many tax saving deposits as well. When we plan to open a deposit, we have to submit our PAN card and the tax saving deposits can be used while filing for income tax.

  • New Telephone Connection:

When we are getting a telephone connection, be it land line or cellular, government has made it compulsory that we provide our PAN card copy, as a proof of identity. By this, terrorism can be avoided.

  • Investing in Mutual Funds:

Customer who are thinking of investing more than INR 50,000, should provide their PAN card details, as well.

  • Investing in Share Market:

    • If you are planning to invest in the share market, it is required that you should open a separate account for trading. Since this involves movement of money, you have to provide your PAN card details, if no PAN details are provided, then your application for opening an account will be rejected.

 

Nowadays, PAN card has become one of the most important document, in all the high value transactions. It is an essential document that can also be used as an identification proof, so in coming days it is one of the important proof.

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