What are the Uses and Benefits of Having a PAN Card? Check Out The Details

The PAN card is a very important document for people in India. It's like a special number that helps the government keep track of taxpayers and makes money-related tasks easier. It's not just for taxes – the PAN card has many uses and benefits.  

Uses and Benefits of Having a PAN Card: 

Helps to Start a Business:

PAN cards are crucial for starting a business in India. The government requires every business to have a PAN. Additionally, to trade, file tax returns, and get a Tax Registration Number (TRN), having a PAN is essential. Some e-commerce portals also demand a TRN for companies to sell products on their platform.  

Deduction in Taxation:

Having a PAN card is important for taxes. If someone earns more than ₹10,000 interest on savings but hasn't connected their PAN with the bank, the bank will deduct 30% tax instead of 10%.  

Opening a Demat Account or Bank Account:

To open a bank account, you must have a PAN card, except if you're opening a zero balance account under the Prime Minister Jan Dhan Yojana. In that case, a Ration card or Voter ID can be used. A PAN card is also needed when opening a Demat account.  

Income Tax Returns Filing: 

As you may know, every individual eligible for income tax must file their income tax returns. And for doing so, a PAN card is necessary. 

Investing and Purchasing RBI Bonds or Insurance:

To invest, fill a form on the AMFI website, attach address proof, and a self-attested PAN card copy. Only KYC-compliant individuals with a PAN card can invest. Also, a PAN card is a must for investments of ₹50,000 or more in RBI bonds.  

While Applying for Loan:

When applying for a loan, it is crucial to provide your PAN card to the lender. This applies to both secured and unsecured loans. 

To Buy Expensive Jewellery:

You might have to deposit a copy of your PAN card while purchasing expensive jewelry above ₹5,00,000.