A PAN (Permanent Account Number) has not always been as important as it is today. Today, it is essential to have a PAN card when doing anything financial in India. When PAN was first introduced, the main purpose was for the IT department to keep track of who has paid their taxes and who hasn’t. Now, you need a PAN when investing, opening a bank account, getting a loan, filing taxes, opening a demat account, buying or selling property, etc. Some other less known uses for a PAN are:
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A Bank Fixed Deposit: You now need a PAN card number in order to open a Fixed Deposit with your bank, unless it is less than Rs.50,000. If you do not have a PAN number, you will be charged a greater amount of interest. Then, you will not be issued a TDS certificate and the forms and other certificates will be invalid.
Hotel Payments and Restaurant Payments: If your bills are exceeding Rs. 25,000, many hotels and restaurants will ask you for a copy of your PAN card.
Travel Payments: If your bills are exceeding Rs. 25,000 when traveling international, many hotels and restaurants will ask you for a copy of your PAN card.
Rental Agreements: If you are thinking of renting a place, then you will need to submit a copy of your PAN to your landlord. They prefer this form of ID proof over any other.
Jewelry Payments: For any large purchase of jewelry, you will be asked to submit a copy of your PAN card by the jeweler.
Used Car Payments: It is necessary to submit a copy of your PAN card to a car dealership in India, before making your first payment.
Landline Phone Installation: You are required to submit a copy when getting a landline phone installed in your home.
Visa Centers: The visa centers need your PAN card number before giving you a visa.
PAN card has become a requirement for everything financial. It is not only used for tax purposes anymore, it is also the most legit form of ID proof.
PAN Card is just as important as an NRI
If you are living abroad, A PAN card is an important document for you to have as well. If you file taxes in India, have any income in India, or any other financial connections to the country, you are required to have a PAN number.
PAN Card Warnings:
-Identity Theft: Identity theft can become your problem after your get a pan card. You need to keep the card safe and with you at all times and be sure when you are mentioning your PAN number on applications. People can easily get a copy or obtain your PAN card number and misuse it. They can quote your PAN card number in transactions that you had nothing to do with.
What do you do if you are a victim of Identity Theft?
When a credit card is stolen and misused, you will probably know about it within a few days. When a PAN card is stolen and misused, it could take up to 8 months before you find out about it. When you go through form 26AS, your tax deduction statement, be careful to look over all the transactions carefully. This is where you will find if your PAN number has been misused. If you do not pay taxes, you will not have this form. When you submit a claim of identity theft to the IT department, they will ask you to prove that the transaction is not yours. This is a very tedious and time-consuming process. Before your give your PAN card details to anyone, be sure of whom you are giving it to.
What is a Phonetic PAN? (PPAN):
The phonetic PAN (PPAN) is a new concept introduced to insure that the same PAN card number is not given to more than one person. When PAN is allotted, the PPAN of the applicant is compared with the PPANs of all the people who have a PAN number in the same country. If there are identical PPANs, the PAN Officer will be notified. Then, the PAN card officer will have to produce a duplicate PPAN report for that applicant. The applicant will then receive a duplicate PAN card with a different PPAN.
