PAN card should be used just where it is advised by the Income Tax Department and in different laws wherever it is compulsory. If you use PAN card as an Identity proof everywhere a proof is needed, there are chances that it can be misused to carry out money related fakes, spams and frauds. It can be even used to do fraud transactions.
In this way, it is imperative to know when and where PAN number is to be used.
What is PAN Card?
PAN is a ten-digit alphanumeric number, issued as a card by the Income Tax Department. PAN encourages combination of different reports including; instalment of expenses by an individual, data on speculations, loans and so on.
PAN contains ten characters (alphanumeric). The characters are not irregular. For Example –AFDPR8190K, where the initial three characters i.e. “AFD” in the PAN are alphabetic arrangement running from AAA to ZZZ, fourth character of PAN i.e. “P” speaks to the status of the PAN holder (P for Person/Individual). Fifth character i.e. “R” speaks to first character of the PAN holder’s last name/surname. Next four characters i.e. “8190” are successive numbers running from 0001 to 9999. Last character i.e. “K” in this illustration, is an alphabetic check digit.
Money related transactions where citing of PAN is obligatory
The following are the money related exchanges where citing your PAN is necessary:
- According to Budget 2015, citing of PAN is obligatory for any purchase or deal surpassing the estimation of Rs 1 Lakh.
- Sale or purchase of any fixed property esteemed at Rs 5 Lakh or more.
- At a bargain or purchase of a motor vehicle (bike is exempted).
- If you book a Time Deposit surpassing Rs 50,000 with a bank or with a Post Office.
- While purchasing or offering money related securities (Shares/Bonds/Debentures) which are esteemed at more than Rs 50,000.
- While opening a Bank account.
- PAN should be cited while applying for a phone connection.
- Instalment to inns and eateries against their bills for a sum surpassing Rs 25,000 at one time.
- Instalment in real money for purchase of bank drafts or pay requests or broker’s checks for a sum amassing Rs 50,000 or additionally amid a one day.
- Save in real money of Rs 50,000 or more with a bank amid any one day.
- While applying for a Credit or Debit card.
- Instalment of a measure of Rs 50,000 or more to a Mutual Fund for purchase of its units.
- Instalment of a sum conglomerating fifty thousand rupees or more in a year as life coverage premium to a backup plan.
- On purchase of bullion which is worth Rs 2 Lakh or progressively and Jewellery with value of Rs 5 Lakh or more.
- It is compulsory to give a duplicate of your PAN card while getting enrolled under various statutes like Excise, Service Tax, Value Added Tax (VAT) and so forth.
- Income Tax Return.
- If you are staying in a leased property, you have to present your Landlord’s PAN details to your boss to guarantee HRA remittance (if HRA exception is above Rs 8,333 pm or Rs 1 Lakh p.a.).
- If the individual with whom exchange has been entered and Tax already deducted at source, then PAN must be given. In the event that PAN is not given then TDS at the rate of 20% will be deducted.
One should avoid using PAN card/PAN details as an Identity Proof at any source other than salary or bank related matters. Contingent upon the reason and necessity (as said above), use it judiciously. You may submit other ID proofs like Aadhar card, Voter Id, Driving permit and so forth, if PAN is not required.
Likewise, you can say ‘to whom and for what reason’ you are submitting your PAN card copy or PAN card details. For instance – for applying HDFC bank Visa. You may cite particular substance name, reason, date and afterward sign the PAN duplicate, to dodge any misuse.