Relationship between Pan Card and Income tax.
Permanent Account Number or PAN is a very important document for financial transactions. It has a unique 10 character alphanumeric code that is unique for every individual. Pan is issued by department of income tax, Government of India. Pan Card is a very important document that works as an identification tool.
Benefits of PAN Card for Income Tax Authorities
Authorities estimate the overall tax generated in India through Pan Card. The Income Tax Department of India can calculate the tax for an individual by tracking the financial transactions through pan transaction.
Following are the benefits of PAN cards to the Income Tax Department:
- As Pan Card includes the holder’s name, address and photograph, it works as an identification proof
- It enables the department to determine the tax that is applicable to each individual.
- It helps the authorities to track the income by individuals and also apply the associated taxes in accordance.
- As PAN numbers are unique to each PAN Card holder, there will be no concerns of misuse even if you lose the card, or if you have a change in name or address.
New pan card rules:
Under the Prime Minister Narendra Modi’s leadership, the Indian government has made new PAN card rules.
The new rules are mentioned below:
- You need to furnish your pan card if you want to make any transaction like foreign travel or hotel bills in excess of Rs.50,000.
- Pan card is necessary if you are buying a jewellery in excess of Rs.2 lacs, whether it is paid in cash or by card
- For buying immovable property in excess of Rs.10 lacs, PAN cards are compulsory. As the previous limit for the purchase of immovable property was Rs.5 lacs, Government has released new rules to make things easier for small home buyers.
- For term deposits more than Rs.50,000 in one shot, PAN is mandatorily
- Except Pradhan Mantri Jan DhanYojana accounts, PAN Cards are compulsory for opening every kind of bank account
Reasons Why PAN Card is Essential for Income Tax
Income tax pan status Income Tax Returns
To file your Income Tax returns, PAN card is a necessity. Government uses the PAN card to identify an individual from a taxation point of view.
Pan card is a very important document for every individual in India. It works as an identification document for all important financial transactions. To improve the Pan Application process, government has come up with new pan rules. For anything related to your income tax, Pan card is absolutely essential.