Thursday, 12 June 2014

WHY IS IT NECESSARY TO HAVE PAN CARD?

It is mandatory to quote PAN on return of income, all correspondence with any income tax authority. From 1 January 2005 it will be mandatory to quote PAN on challans for any payments due to Income Tax Department.

It is also compulsory to quote PAN in all documents pertaining to the following
Financial transactions:-
(a) Sale or purchase of any immovable property valued at five lakh rupees or more;
(b) Sale or purchase of a motor vehicle or vehicle, [the sale or purchase of a motor
     vehicle or vehicle does not include two wheeled vehicles, inclusive of any detachable
     side-car having an extra wheel, attached to the motor vehicle;]
(c) A time deposit, exceeding fifty thousand rupees, with a banking company ;
(d) A deposit, exceeding fifty thousand rupees, in any account with Post Office
     Savings Bank;
(e) A contract of a value exceeding one lakh rupees for sale or purchase of securities;
(f) Opening a bank account;
(g) Making an application for installation of a telephone connection (including a
     Cellular telephone connection);
(h) payment to hotels and restaurants against their bills for an amount exceeding                                                   twenty-five thousand rupees at any one time ;
(i) payment in cash for purchase of bank drafts or pay orders or banker’s cheques for
    an amount aggregating fifty thousand rupees or more during any one day;
(j) deposit in cash aggregating fifty thousand rupees or more with a bank during any
    one day;
(k) payment in cash in connection with travel to any foreign country of an amount
     exceeding twenty-five thousand rupees at any one time.




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