List of Pan Card Use / Usages with Proper Reason
There are numerous uses of a PAN Card. Let’s have a look at them:
1. To open a bank account
A PAN card comes into use when you open a new bank account, whether it’s a savings or current account. All the private, public, and co-operative banks ask for the submission of PAN card for opening the bank account.
2. Identity Proof
PAN Card also acts as a valid identity proof of an individual as well as proof of age in the entire country. It is also considered a valid ID and age proof when applying for a passport, driving license, voter ID, gas connection, etc.
3. Filing IT Returns
All the individuals in India, who come in the eligibility bar of the Income Tax, need to file their IT returns regularly. In order to file IT returns, one need to have a PAN Card. Filing IT Returns is one of the reasons why people apply for a PAN card.
4. Applying for a Debit/Credit Card
It is mandatory to submit your PAN card details while applying for a debit card and a credit card at a financial institution. The banks do not furnish you a credit/debit card if the PAN card details are not provided to them.
5. Selling/Buying a Vehicle
If you are looking forward to buy or sell a vehicle, which costs more than Rs 5, 00,000, make sure that you have a PAN card as it is mandatory to have one while doing such transaction.
If you are thinking about making investment in the securities, you will have to provide your PAN card details for the transactions above Rs 50,000. This is applicable to equities, bonds, mutual funds, and debentures.
7. Buying Jewellery
When buying jewellery of worth more than Rs 5, 00,000 it is mandatory to furnish the PAN card details at the time of the transaction.
8. Renting, Buying or Selling Property
In India, now renting, buying and selling properties requires a PAN card. In such cases, the PAN card details of both the seller and the buyer need to be listed on the deed as well as other documentation that are use during the transaction.
9. Foreign Exchange
If you are in a foreign country and want to exchange your Indian currency with a foreign currency, then you will need to provide your PAN card details at the exchange bureau, bank, or institution from where you getting your money exchanged.
If you require a loan, all the loan providers, be it, a bank or a lending company asks for your PAN details at the time of your loan application. All the loans, right from the educational loans to home loans, require the PAN card details for being approved.
11. Depositing Cash
While making cash deposits that amount to more than RS 50,000, you will be asked to furnish your PAN card details as well. This is done on the instructions of RBI that asks for the notification of large amount deposits in order to prevent the money laundering.
12. FDs (Fixed Deposits)
Fixed Deposits amounting to more than Rs 50,000 are processed with PAN card details. This is done because the bank deducts TDS on the FD’s interest amount.
In case a person makes an insurance payment more than Rs 50,000 in a year, then he/she will have to submit the PAN card details.