If you still believe that PAN card is used only by income tax payers, then you need to update your information immediately. To make economic transactions in the country transparent, the Central Government and the Income Tax Department have made the rules very strict.
Today, PAN card is no longer just a plastic card, but it has become the strongest document of your entire financial identity. If you are planning to buy a new car, want to invest in property or are going to deposit a huge amount in the bank, then without this card all your work will come to a halt. The Income Tax Department has fixed a list of such big and common transactions where giving PAN card is absolutely mandatory.
PAN card will be required for these works
According to the new guidelines of the Income Tax Department, it has become mandatory to provide PAN card information on money transactions exceeding a certain limit. If you buy or sell any car or commercial vehicle except a two-wheeler, this card will be asked for first. Similarly, opening a new account in any bank other than the basic savings account or opening a demat account for investing in the stock market, it is not possible without PAN.
It is not just about investment or property. If you pay the bill of a luxurious hotel or restaurant in cash and the amount is more than Rs 50,000, then you will have to provide PAN details. The same rule applies for purchasing foreign currency worth more than Rs 50,000 for traveling abroad.
Apart from this, PAN is mandatory for investments above Rs 50 thousand in mutual funds, company debentures, or RBI bonds. It is necessary to give PAN number even if you deposit more than Rs 50 thousand in cash in the bank in a day, make a demand draft (DD) of the same value, if the annual premium of life insurance is more than Rs 50 thousand or spend more than Rs 50 thousand annually in digital wallet. At the same time, if you buy or sell any land or house worth more than Rs 10 lakh, or buy unlisted shares worth more than Rs 1 lakh, then having a PAN card is the first condition.
What to do to avoid legal troubles?
Many times common people make big cash transactions due to lack of information and later when the notice from the Income Tax Department comes, problems arise. PAN card keeps a record of your every financial move, which helps the government to accurately assess your income. Before making any big deal or investment, check that your PAN card is fully active and it is linked to your Aadhar card. The mistake of taking this small card lightly can cost you both your hard-earned money and mental peace.