What are the Benefits of PAN Card?

As of May 2010, the Income Tax department in India has made it mandatory for all Indians to have a PAN card (Permanent Account Number), irrespective of their tax filing status. The PAN is a ten-digit alphanumeric number that is issued in the form of a card. It serves as a universal identification factor for tracking high value transactions and ensures that all financial transactions are in compliance with tax laws, and thus help prevent tax evasions.

PAN Card: Benefits

The PAN card also offers the following advantages:

• PAN is unique, permanent and national and acts as an ID proof.
• Is unaffected by address change, even between states.
• PAN is a must for depositing Rs.50, 000 or more in any bank.
• Must for operating demat accounts or for opening a bank account.
• Applying for a telephone connection including cellular connection.
• Applying for a credit card.
• For cash payment of a minimum of Rs.50, 000 for buying bankers cheques, bank drafts or pay orders on a single day.
• Selling or buying immovable property worth Rs.5 lakhs or more. If the property is co-owned, the PAN of both owners must be mentioned.
• Selling or buying motor vehicles other than two wheelers. This also excludes vehicles used only in factories or other enclosed premises and vehicles that run on rails.
• Sale or purchase of shares, bonds, derivatives, debentures or other securities over Rs.1 lakh.
• An investment exceeding Rs.50, 000 in shares, mutual funds or post office savings.
• Payment of a minimum of Rs.25, 000 against hotel or restaurant bills.
• PAN of a parent or guardian (who will be clubbing the income) is required in case a minor intends to have a time deposit or bank account