Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department, to any person who applies for it or to whom the department allots the number without an application. To stop black money Income Tax Department had decided to put into some rules and regulations for the use of Pan Card.
These rules will be applicable from 1st January, 2016. A Permanent Account Number (PAN) is one of the most important documents in the country today. An Aadhaar document will now be enough for any individual to obtain PAN card as the Income Tax Department has relaxed an awkward procedure of having multiple documents to prove one’s own identity.
Furnishing PAN will be mandatory from January 1 for cash transactions exceeding Rs 50,000. Here is the list for which PAN Card will be necessary:
- If your hotel or restaurant bill is more than 50 thousand and if you want to pay it in cash than you have to give your PAN Card details.
- If you want to travel foreign trip and your travel agency, currency conversation or any type of bill you are paying by cash than PAN details will be mandatory.
- If you are purchasing Jewellery or any other shopping is done more than 2 lakh rupees than PAN details is must.
- If you are part of any bank schemes, post office schemes, NBFC or any deposit schemes you are transacting 5 lakh rupees in a year than PAN details will be needed.
- If you are investing more than 50 thousand rupees in Mutual Funds in a year than you have to give PAN details.
- To purchase any share or any type of investment of 1 lakh rupees in a year than PAN details are necessary to give.
- If you are giving LIC premium more than 50 thousand in a year than PAN Card details is necessary.
- If you are purchasing or selling any property i.e in Real Estate Segment, more than 10 lakh rupees than PAN details is mandatory.
- Other than that, the requirement of PAN applies to opening of all bank accounts including in co-operative banks.