Benefits of PAN Card

Gone are the days when there was no requirement for any proof of identity for carrying out any financial transaction. Now, it is required by almost everywhere to submit your identity proof for making investment or conducting any financial transaction. PAN card is one of the important identity proofs available to Indian people.

Nowadays, it is necessary to submit a copy of PAN Card for all the cash transactions which are more than Rs 50,000. Central Board of Direct Taxes (CBDT) has amended the income-tax rules on January 8, 2017 asking all banks to link the Permanent Account Number (PAN) or Form No. 60 (where PAN is not available) to all existing bank accounts by 28 February 2017, if not done already. Basic Savings Bank Deposit Accounts (BSBDA) are excluded from it.

Major benefits of PAN card are outlined below:

  • PAN Card is considered as an important proof of identity
  • PAN Card is mandatory for filing income tax returns
  • PAN Card is required to open a bank account
  • It is needed for purchasing a mobile sim card
  • It is required for purchasing any item which exceeds specified limits, etc.
  • For performing banking transactions exceeding Rs.50000, PAN Card is a must
  • It is required in case of sale of any property
  • Required for investment in stock market or mutual fund
  • If an individual gets a salaried job, he must have a PAN Card