PAN Card for Transactions

PAN (Permanent Account Number) is considered to be one of the most relevant documents for the taxpayers nationwide. It is imperative to own a Permanent Account Number if someone wishes to categorize their financial transactions in a systematic way. The PAN system has simplified the taxation system of the country by providing a streamlined solution for tax payment. PAN system in India is similar to the Social Security Number system(SSN) in US which was primarily used to track the citizen’s transactions for security purposes but has been recently considered as a required document for filing tax returns. Once issued, a PAN card’s validity extends through a lifetime. PAN card is essential for many financial transactions and also buying jewellery, automobiles etc

Changes in PAN card transactions

To streamline financial transactions in the country, the Government of India made some changes in the PAN card transactions above 2 lakhs and its effective since the beginning of year 2016. The main objectives of the changes introduced in PAN card were to curb the black money flow and widen the taxpayer’s base.

PAN card was made mandatory for the following financial transactions:

• Sale and purchase of immovable property worth more than 10 lakhs
• PAN card is mandatory for the purchase of four wheeler, however, its not mandatory for the sale/purchase of a two-wheeler
• It is necessary for an individual to own a PAN card for opening a bank account
• Cash payments of more than 50,000 during foreign travels require the individual to own a PAN card
• It is necessary for a policy-owner to mention his/her PAN details if the premium tends to exceed more than 50,000
• ANy fixed deposit in a bank account exceeding an amount of 50,000 needs to be backed by PAN details
• Quoting of PAN details is necessary for an individual making cash deposit of more than 50,000 in a single day
• Furnishing a PAN card is also mandatory for an individual buying gold jewellery worth more than 2 lakhs
• An individual who wishes to purchase stocks in an unlisted company or open a DEMAT account needs to own a PAN card