Permanent Account Number or simply PAN card is a card which is provided by income tax department to every tax payer. Apart from being mandatory in many official documents, this card has also emerged as an important identity proof. Whatever legal proceedings you wish to undergo in India, you are supposed to have a PAN card for the same. If you are still wondering about the PAN card and its significance then here are the five important places where you need a PAN card. Also, the places will define why a PAN card is important in India.
For Opening Bank Account: While opening your bank account anywhere in India or of any nationalized or private bank, you always need the photocopy of the PAN card. However, there are few programs launched by the government to promote banking in rural areas where a PAN card is not necessary.
For Applying for Credit/Debit Card: It is mandatory to produce your PAN card while applying for credit or debit card. In case you forget to do so then the application is liable to get rejected. In case your credit card application is rejected then it can create a problem in getting loans or other bank credits. Other than this, it can also hamper your CIBIL score.
Insurance Payment: Any type of insurance that you want to have in order to protect your life, you need to produce your PAN card for it. CBDT has made it compulsory for the policyholders to produce the PAN details while making the premium payment for their insurance for an amount more than Rs.50, 000.
Buying or Selling Vehicle: In case you want to purchase a new vehicle or want to sell the old one then for this you need a PAN card. For a vehicle costing 5, 00,000 or more submitting the PAN card photocopy is necessary.
Property Matters: If you are buying or selling any property in India then you are supposed to show your PAN details for the same. Property transaction or 5,00,000 or more need the copy of the PAN card for it.
So, these are the five most important places where you will need your PAN card. Other than this, there are many other procedures where the PAN card is a must. If you want to buy or sell any valuable thing in India you need PAN card. Other than being important for banking transactions, it has also emerged as an identity proof.
The article is submitted by Nritaxservice.in. The company assists the non-residents in their financial affairs in India as well abroad. The company provides advisory and compliance services encompassing the entire gamut of Taxation (Income Tax, Wealth Tax, DTAA, Custom etch), Foreign Exchange Law (RBI/FEMA, FCRA, Companies Act etc.).