GOOD READS

Know your PAN card better

The importance of Permanent Account Number (PAN) card has grown over the years, and it is today an essential part of our lives. The most important purpose of allotting PAN to an entity is for the purpose of identification and to track all the related monetary information of that entity. Initially, the significance of PAN was for filing income tax returns. Over time, PAN was used in dealings with the stock markets, banks and purchase of real estate and vehicles. Today, PAN has started finding use in unconventional areas as well, as follows:

•    Bank Fixed Deposits: If you open a fixed deposit with your bank for an amount exceeding Rs. 50,000, a copy of PAN card needs to be given. In absence of PAN, the bank will deduct TDS of 20% or at the prevailing rate, whichever is higher (instead of the normal 10%). Further, the bank will not issue TDS certificate. Form 15G/15H and other exemption certificates will be invalid in this case.

•    Payment in Hotels and Restaurants: You may asked to submit a copy of your PAN if you pay cash in hotels or restaurants against bills for an amount exceeding Rs. 25,000

•    Payment to Travel Agents: Cash payment more than Rs. 25,000 for travel to any foreign country (fare or purchase of foreign currency) in a single payment requires you to produce your PAN copy

•    Rental Agreements: Nowadays, landlords demand a copy of the PAN card of tenants, as the primary ID proof, while letting out their property.

•    Jewellery shops: High-value purchase of jewellery in cash should be accompanied by a copy of the PAN card of the buyer, mainly as a means to curb black money usage.

Other usages of PAN include:

•    Payment in Second Hand Car Dealings

    Installation of Telephone

•    Visa Facilitation Centres

It is seen that quoting or producing a copy of your PAN card is compulsory in practically every money transaction, and not restricted to Income Tax dealings. The significance of PAN cannot be questioned as this has become the primary document sought in all important legitimate dealings.

Do NRIs require PAN Card?

As PAN is required for any financial transaction in India, an NRI will need to have a PAN card if he has an income in India and has to file returns, if he wishes to invest in India, when he carries out banking transactions, if he purchases real estate or for any transaction mentioned above.

Beware of PAN Frauds:

The increasing importance of PAN has increased the likeliness of PAN Card identity theft. The safeguarding of the physical copy of the PAN card no longer assures that your card is not being misused. As a majority of transactions demand a photocopy of your PAN card, or simply quoting the Permanent Account Number, it is very easy for your information to be misused for high ticket purchases or benami property transactions. A copy of your PAN card or simply its number can be quoted in transactions, which you are not even a part of.

Example of how your information can be misused: Recently, a consumer activist group revealed that the PAN card copy used in Railway ticket Tatkal bookings were misused by several jewellers. When an individual produces his PAN to book the Tatkal tickets, this information is fed in the Indian Railways system and also displayed on the ticket, reservation chart and train coaches. Unscrupulous jewellers steal this information from such public displays and use it to furnish tax collected details while they sell jewellery of very high value to high-net worth individuals who do not wish to produce their PAN.
If this happens to you?

When your PAN card is illegally used, you may not even be aware of this for atleast 6 months after the wrong transaction. You can check for such benami transactions by going through your Form 26AS, which is a consolidated statement of tax deducted, along with other details. If you are a non-tax paying PAN card holder, you may not even be able to check this form. The Income Tax department will require the PAN card holder to prove that the transaction was not carried out by him, and also give details on his source of funds. This becomes very difficult and time-consuming. As a PAN card holder, you should take care while disclosing your PAN details to anyone. You must hand over only signed photocopies and try to reduce using PAN in all casual transactions as ID proof.

Phonetic PAN (PPAN):

The phonetic PAN (PPAN) is a new concept introduced to prevent a single PAN being allotted to more than one assessee with same or similar names. When PAN is allotted, the PPAN of the assessee is compared with the PPANs of all the assessees to whom PAN has been allotted in the country. A warning is sounded off if a matching PPAN is detected. A duplicate PPAN report is then generated. A new PAN can be allotted only if the Assessing Officer overrides this duplicate PPAN detection.

Thus the PAN is a key document today and even takes predominance over your name as far as the tax authorities are concerned.

By BankBazaar.com - an online marketplace for your personal loan and home loan needs.

Quiz: What do you know about the Budget?

Question 1

What happens if there is no interim Budget presented?

Poll Choice Options
  • We do no™t have to pay taxes
  • The government can come to a standstill
  • Absolutely nothing
1
2
3
4
5
6
7
8
9
10

Latest News

  • Asian shares struggle, dollar slips as Ukraine tensions rise
    Asian shares struggle, dollar slips as Ukraine tensions rise

    Asian stocks struggled to rise on Friday, as the impact of upbeat U.S. economic data and robust U.S. tech shares faced off against fears of an escalating Ukraine crisis that bolstered the safe-haven yen. U.S. Secretary of State John Kerry said on Thursday that time was running out for Moscow to change its course in Ukraine. MSCI's broadest index of Asia-Pacific shares outside Japan was a few ticks higher in early trade, while Japan's Nikkei stock average skidded 0.5 percent as disappointment …

  • Starbucks cafe sales heat up slightly in latest quarter

    The results from the world's biggest coffee chain came after McDonald's Corp (MCD.N), Dunkin' Donuts parent Dunkin' Brands (DNKN.O) and other major U.S. restaurant operators said last quarter's severe winter storms chilled results. Starbucks executives said the inclement weather also hit its business, but did not quantify the impact. Global sales at Starbucks cafes open at least 13 months were up 6 percent for the second quarter, versus analysts' average estimate of a 5.4 percent gain, …

  • Amazon's revenue increases even as spending rises
    Amazon's revenue increases even as spending rises

    Amazon.com Inc's (AMZN.O) revenue grew more than expected for the first quarter, largely offset by a sharp increase in spending on technology, content and new warehouses as the e-commerce company branches into new businesses. Amazon's international unit, which accounts for 40 percent of sales, continued to be a drag as sales growth slowed to 18 percent during the quarter. Global unit sales, a closely watched measure of how many items Amazon has sold, also decelerated, rising only 23 percent. …

  • 100-Square-Foot Cabin is a Kaleidoscopic Wonderland

    Photo via NYMag Plucked from New York magazine's annual Spring Design issue, which published this week, this technicolor dream of a microhome right outside Santa Fe, N.M. serves as a wee "reverse country house," for couple Linda and Jack Oldham—who... …

  • Microsoft beats Wall Street on new CEO debut

    Microsoft Corp's (MSFT.O) new chief executive got off to a winning start with Wall Street on Thursday as the world's largest software company eased past analysts' profit estimates despite the pressure of falling computer sales. Microsoft shares are up about 8 percent since company veteran Satya Nadella took over as CEO in early February, and are up 19 percent since his predecessor Steve Ballmer announced plans to retire last August, easily outpacing the Standard & Poor's 500. Investors are …

IN-DEPTH ANALYSIS & INTERVIEWS

  • Too good to be true?

    Developers are offering lucrative buyback schemes. But such promises may not be always kept. …

  • Leaderspeak with Vikram Limaye

    Vikram Limaye MD & CEO, IDFC Ltd shares many firsts from his life. …

  • The Greening of the House of Tatas

    How a dedicated team converted a 90-year-old heritage structure into a benchmark for environment-friendly buildings. …

  • Appy Voting

    Mobile and online apps, seeking to inform or influence voters, have been more active than ever before in this election. …

  • In the crosshairs

    Why the future of FDI in multi-brand retail looks bleak after the polls. …

  • Deserving the honour

    How do the winners of the two new banking licences - microfinance lender Bandhan Financial Services and infra institution IDFC Ltd - measure up to the challenges of operating as full-fledged banks? …

  • A Samurai from Chandigarh

    Advertising veteran Sandeep Goyal is disarmingly frank as he recounts his years with Dentsu. …

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    16.52-0.33-1.96%
    UNITECH.BO
    14.31-0.27-1.85%
    SUZLON.BO
    120.40+7.00+6.17%
    FRL.BO
    66.05+4.10+6.62%
    MANGCHEM.BO
    54.40+1.65+3.13%
    HCLINFO.BO
  • Price % Gainers
    Price % Gainers
    NamePriceChange% Chg
    16.20+2.70+20.00%
    JAGSONPH.BO
    53.50+8.90+19.96%
    RUSHIL.BO
    40.45+6.45+18.97%
    RCIIND.BO
    63.95+8.90+16.17%
    MRPL.BO
    24.00+3.10+14.83%
    NELCAST.BO
  • Price % Losers
    Price % Losers
    NamePriceChange% Chg
    10.95-10.95-100.00%
    4THGEN.BO
    17.30-17.30-100.00%
    ALFAICA.BO
    16.81-16.81-100.00%
    AMAL.BO
    11.73-11.73-100.00%
    BORAX.BO
    29.95-29.95-100.00%
    BRADYM.BO

QUOTES

 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.