PAN(PERMANENT ACCOUNT NUMBER)

PAN stands for Permanent Account Number

All individuals and entities who are eligible for Income tax are expected to file their IT returns. A PAN card is necessary for filing of IT returns . PAN also serves as valid proof of identity for starting a Business , Claiming the TDS refund and for opening a Bank Account too.Even in case of Foreign Travels and in payment made to Restaurants and hotels if it exceeds 50000 then PAN is mandatory. For time Deposits in banks and for Banker’s Cheque ,Pay Orders if amount is more than 50000 then PAN is must

It is essential to include PAN details in documents related to the following transactions:

If valid PAN details are not updated with the bank, tax will be deducted from the interest earned on your deposits at a prevailing rate or 20%, whichever is higher.

Purchase or sale of the property, Sale or purchase of a car, Opening demat and trading account, TDS return to income tax department.

A time deposit of more than Rs. 50,000 with any bank and deposit of more than Rs. 50,000 with post-office savings bank. PAN is mandatory while investing in post-office National Savings Certificate.

Cash payment of Rs. 50,000 or more for purchase of bank drafts in a single day.

Cash payment more than Rs. 25,000 in connection with travel to any foreign country (purchase of foreign currency)

Application for installation of telephone, including cellular telephone, Payment to hotels bills exceeding Rs. 25,000 at any one time.

Opening a bank account,Application for issue of a credit card, A cash deposit of Rs. 50,000 or more with any bank in a single day.

Payment of Rs. 50,000 or more to a mutual fund for purchase of units

Minor intending to open time deposit or bank account should quote the PAN of either father, mother or guardian in whose hands income is likely to be clubbed.