What is pan card and why pan card is required?
What is PAN Card?
PAN Card means Permanent Account Number used to identify taxpayers in the country. It has a 10-digit unique identification alphanumeric number contains both alphabets and numerical digits allocated to Indian Citizens, PAN card is used mostly by taxpayers, but this Card can be availed by any citizen of India,
The every PAN Card assigns a unique identification number to every Indian who has a card. A taxpayer’s has all tax-related information for a taxpayer against a single PAN number which is used as the first key for keeping the information. This is shared all over the country so more than one person on taxpaying entities can not have the same Card.
Whenever a PAN card number is allotted to an individual or authorities, it is also given by the Income Tax Department.
Your PAN Card is valid for a lifetime because it is not affected by any change in your address.
You can apply for your card online, there are mainly two governmental companies for issuing PAN Cards, UTI Pan Card and NSDL PAN Card. You can visit their Official websites to apply for yourself at one, you can also avail E-PAN card online facility to have a PAN card number instantly, without waiting for physical delivery which usually takes 7 days to arrive.
Why PAN card is required?
1. PAN Card details are required for opening a bank account with an authorized bank if at the time deposit an amount exceeding INR 50,000 or exceeding more than INR 5 lakhs during any financial year.
2. PAN Card is required for buying or selling vehicles except for two-wheelers.
3. PAN Number details are needed for applying for a credit card.
4. PAN details are required for opening a Demat account with a bank and the Securities Exchange Board of India (SEBI).
5. PAN Card is required for payment in cash which is more than INR 50,000:
● Depositing cash in a bank account
● Paying with cash more than INR 50,000 at retail stores.
● Signing checks amounting to more than INR 50,000 for cash withdrawals.
1. PAN Card or Company PAN cards (most of the company offers life insurance to their workers) are required for the payments of life insurance as a premium an amount crossing the sum more than INR 50,000 in any financial year.
2. PAN details online or E-PAN online are required for buying or selling securities (except shares) online exceeding more than INR 100,000 per transaction.
3. PAN Card is required for buying and selling of a company’s share where the company is not listed on BSE/NSE exchange for an amount exceeding more than INR 1,00,000 per transaction.
4. PAN card is also required for buying and selling of any property which cannot be moved, an amount exceeding more than INR 10 lakhs.
5. PAN Card is required for buying any goods that amount exceeds Rs 2 lakh per transaction.
So, these were the quick details about PAN Card and its requirements, if you have any doubt regarding on this topic, do let us know by commenting below or contact us, we will be happy to help you, do share our pages with your loved ones if you think it helped you.
If you have any more queries, don’t worry, we are coming with a bunch of articles to help you.