Knowingly or unknowingly, we all quote our PAN card number. We never consider or rethink whether quoting our PAN number for particular financial transactions is mandatory or what. However, IT Department made a list of such transactions where quoting PAN is mandatory. Let us see the list of those transactions.
Why quoting PAN number is mandatory?
It makes easy for IT Department to link an individual’s all transactions. By doing so, it will be easier of IT Department to track your investments, lending, financial transactions or any business activity.
Below is the list of such transactions where quoting PAN Number is mandatory.
- If the value of immovable property value is more than Rs.5 lakh or more, then whether it is buying or sell, at both the instances you have to quote the PAN number.
- During sale or purchase of motor vehicle (but not for two wheeler buying or selling).
- During the time of time deposit with banking company/post office where the such deposit is more than Rs.50, 000.
- In application where you are applying for telephone connection, including mobile connection.
- When you pay in cash to purchase DD, pay orders or banker’s cheques for an amount aggregating to Rs.50,000 or more during a day. Also during deposit in cash aggregating to Rs.50, 000 or more with a banking during any one day.
- During Sale or Purchase contract value of a security is more than Rs.1 lakh.
- During opening of bank account. In case of minor, father, mother or guardian PAN number is mandatory.
- If your hotel bill exceeds Rs.25, 000 at any one time.
- Payment in cash in relation to travel to a foreign country if the amount is exceeded Rs.25, 000. However, travel to foreign countries not included in Bangladesh, Bhutan, Maldives, Nepal, Pakistan or Sri Lanka or Travel to Saudi Arabia for Haj or travel to China on Pilgrimage to Kailash Mansarover.
- During submitting an application for Credit or Debit Card.
- While investing in Mutual Funds if the investable amount is Rs.50,000 or more.
- While buying shares, debentures, or bonds (including Reserve Bank Of India Bonds) of a company if the value is Rs.50, 000 or more.
- While paying an aggregate insurance premium of Rs.50, 000 or more.
- While purchasing bullion or jewellery of Rs.5 lakh or more
- Payment to a dealer of an amount of five lakh rupees or more at any one time.
What if you don’t have a PAN number, but entering into above said transactions?
If you don’t hold the PAN card, but entering into above said transactions, then you have to submit the Form No. 60 (Form 61 in case of a person having only agricultural income).
Who is responsible if you don’t quote the PAN number?
It is the responsibility of a person receiving document relating to the above said financial transactions. For example, in case of Mutual Fund investments, if the value of such investment is Rs.50, 000 or more, then it is the responsibility of Mutual Fund companies to get the correct PAN number of investors and quote the same in the application form.
16 Responses
Pan card compulsory for live stock purchase
Mohd-YES.
I dont have a pan card and i’m not eligible for income tax
How can i apply for a home loan?
Rajat-Without the proof of income no bank will lend you money.
Can I in my trade, can purchase agricultural goods from agriculture’s of value more than two lacks, without quoting pan number
Hi Basu
I have one query .
I want to apply the Pan card for my spouse.
1. Shall I apply her pan card with my surname (initial) or her parents surnames
Can you please suggest?
Thanks&Regards
Chennaiah
Chennaiah-Better in your surname with providing the valid marriage certificate.
From where i can get FORM – 60 / 61
Devraj-The entity who ask for your PAN will provide you these forms. For example, if banks ask for your PAN, then they provide these forms for declaration that you don’t have PAN.
Mam’s I have education loan in canara bank, while taking loan i didn’t have PAN card. I have it right now. I haven’t gave PAN card number to bank yet. What should I do ? Whether go and mention it in the bank or leave it as it is. And
I read somewhere that I may get tax exemption if I mention it in bank while working.
Dayanand-Education loan will be on parents name and income eligibility will be on parents name only. Hence, your PAN updation is not required. However, once you start job then for taxation purpose you have to provide PAN number to bank. Hence, if your aim is to avail tax benefits, then go and update it. Yes, there is a tax benefit under Sec.80E for whatever the interest you pay towards educational loan. You can get benefit only for interest payment but not the principal payment.
I am around 50 yrs of age, during many attempts while filling the term plan forms on line the requisite information is so specific and with all details it sometimes create doubts, will the insurer will get justice after the demise , because the insurance company will some times fine some lacuna on declaring his (insurer) all status these includes health & wealth for all family members. Secondly why the premium is so difference for same age with same time of term plan in the insurance company? Thirdly among these three company I’ve choose which one is better HDFC, ICICIPRU & MAXLIFE in regards to claim settlement and less legal hassle post death, because ultimate aim to the insurer is to financially support the family in his/her absent . Thanks for providing such a good portal.
Ashish-1) There are million reasons for die and million reasons to reject. Hence, we can’t predict all. The only work what we can do is to declare facts properly.
2) Premium differs based on the mortality table they use, business competition and some other facts.
3) For me all are good.
Whether as per amended rules regarding enhancement of yearly limit in amount of deposits into PPF Account, an NRI can deposit Rs.1,50,000/ or Rs.1,00,000/ ?
Mahajan-At first, NRIs not allowed to open and invest in PPF. However, if they already own a PPF then they can only CONTINUE but not extend. For those, the limit is Rs.1,50,000 but not Rs.1,00,000.
Wellcomed this fourm