Why PAN Card is required? According to Indian Income Tax Department rules PAN Card is mandatory to file income tax return on all categories of taxable income by any Indian citizen. The most important benefit of having a PAN card is that you will be able to get back some of your income tax as rebates. There are various sections through which you will be able to get tax exemptions. For instance, Section 80C of Income Tax Act exempts up to 1 lakh of your taxable income. These rebates can be claimed only if you file your returns properly. And for that you will need a PAN card Permanent Account Number allotted in PAN Card is essential for the following circumstances required for any monetary transactions: • Opening bank account in India by any resident or non-resident Indians. • For bank deposit over Rs 50,000. • Opening demat and trading account in Indian stock market investment. • To purchase any securities more than Rs 1,00,000. • For demand drafts exceeding Rs 50,000. • Cheque deposits over Rs 50,000. • Purchase or sale of any property in India. • Purchase or sale of cars. • Payments for travel expenses more than Rs 25,000 • TDS return to income tax department. PAN card is required for individual as an identity proof and government needs to trace the transactions and try to control tax evasion. It is possible if transaction of every individual person happen through Permanent Account Number.
Posted on: Thu, 01 Aug 2013 02:24:04 +0000
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