Pan Card

Advantages:


PAN Card is not only meant for tax purposes. Since it carries your photograph, name and address, it is accepted as Proof of Identity (POI) nation-wide. Here are some other reasons why you must have a PAN Card:

Tax Rebate:
Pan Card is required to pay TDS (Tax Deducted at Source). If you do not quote your PAN number, you may end up paying tax twice.
Needed for Financial Transactions:
A valid PAN Card is needed for all important as well as big-ticket financial transactions such as :
  • applying for a landline or cell phone connection,
  • cash payment of more than Rs 25,000 for foreign travel in one day,
  • cash payment of more than Rs 50,000 in one day for bank drafts, cheques or pay orders,
  • depositing more than Rs 50,000 for a fixed time in a bank,
  • investing in mutual funds or securities,
  • opening a demat or bank account, and
  • purchase and sale of property and motor vehicles.
  • Purchase of Property by NRIs: NRIs need to mention their PAN Card number to engage in a business in India or buy a property here without having to file tax returns here.
  • Correspondence for Income Tax Department: It is mandatory to mention your PAN Number on all interaction with the IT department.