Banks to obtain PAN

Last week, the Income Tax department had amended I-T rules and asked banks to obtain permanent account number (PAN) or Form-60 in case PAN is not available, for all account holders. The rule is not applied to Basic Savings Bank Deposit Accounts (BSBDA), which are zero balance savings accounts, including Jan Dhan accounts.

People who deal in large cash transactions will come under scrutiny after this move. Reports say the threshold for quoting PAN Card details for merchant transactions could also be brought down from current Rs 2 lakh. With Aadhaar now having the government's legal backing, the usage for Aadhar card may also be made mandatory as an alternative for people not having PAN card.

The permanent account number or PAN is provided by Income tax department to every income tax payer. Now for most of the transactions, it is compulsory to mention PAN. Here are the few transaction when you need a PAN card in India:

Opening a bank account

A photocopy of PAN card while applying for a new bank account, whether it is a savings or a current account. is necessary. In Pradhan Mantri Jan Dhan Yojana (PMJDY), PAN card was not required by participating banks. All banks, including public, private or co-operative, banks require the submission of a PAN card in order to open an account with them.

Buy or sell a motor vehicle

If you want to buy or sell vehicle then submitting a copy of PAN card is compulsory. For buying or sell a motor vehicle worth more than Rs. 5, 00, 000, you have to provide your PAN Card details when conducting the transaction.

To get a credit/debit card

If you want to apply for either a debit card or a credit card at any bank or financial institution, you need to submit PAN card details. The bank will not issue the card if the applicant failed to submit the PAN card details.

Jewellery purchase

If you need to buy jewellery for amount valued over Rs 5,00,000, you need to furnish PAN card details at the time of purchase. 20 Transactions Where Quoting PAN is Mandatory

Property

Buying, selling or renting property in India is not possible without PAN card as proof. Any property transaction for an amount exceeding Rs 5 lakh requires PAN number to be mentioned in the property document. While buying of property, the PAN details of the buyer, as well as the seller, have to be listed on the sales deed.

Loans

If you require to take out a loan, all loan providers, both banks as well as other lending institutions, require you to submit details of your PAN at the time of loan application. All loans, from education loans to personal loans require PAN details for the loan to be approved.

Fixed and cash deposits

If you open a Fixed Deposit (FD) amounting to above Rs 50, 000 in a bank, you will have to provide your PAN details. For cash deposits above Rs 50, 000, PAN card is mandatory. This is done as the bank will deduct TDS (Tax Deductible at Source) on the FD interest amount. Who Should Obtain PAN Card In India?