The uses of PAN card include income tax filing, financial transactions, investments, business activities, and other transactions where PAN is required by law. A Permanent Account Number (PAN) is a unique 10-digit alphanumeric identifier issued by the Income Tax Department. It helps identify taxpayers and link financial activities to the correct person or entity. PAN may be required for filing income tax returns, claiming tax refunds, opening certain financial accounts, making specified investments, registering a business, and completing other applicable high-value transactions.
What is a PAN card and why does it matter?
A Permanent Account Number (PAN) is a unique 10-digit alphanumeric identifier issued by the Income Tax Department. A physical PAN card displays your PAN, name, date of birth, father’s or spouse’s name, photograph, and other details. Since January 2017, PAN cards have also carried a QR code that stores cardholder details and supports quick authentication. An e-PAN is a digitally signed PDF equivalent of the physical card. The pan card uses include tax and financial transactions, while the use of pan card extends to identity and other applicable purposes. You can also check your free credit score with Bajaj Finance.
What uses does a PAN card have in financial transactions?
The PAN card is used in financial transactions, including cases where PAN is required for cash deposits, property transactions, investments and other specified payments. These requirements explain the importance of having a PAN card for financial transactions.
| Transaction Type | Threshold Amount | Regulatory Basis |
|---|
| Cash deposit | Rs. 50,000 per transaction | PAN requirement |
| Property purchase or sale | Rs. 10 lakh or more | PAN requirement |
| Motor vehicle purchase, excluding two-wheelers | Any value | PAN requirement |
| Mutual fund investment | Rs. 50,000 or more | PAN requirement |
| Government bonds, shares or insurance | Rs. 50,000 or more | PAN requirement |
| Bullion or jewellery | Rs. 5 lakh or more | PAN requirement |
| Hotel or restaurant bill | Rs. 25,000 or more | PAN requirement |
| Foreign travel | Rs. 25,000 or more | PAN requirement |
| Foreign remittance | Any value | PAN requirement |
The use of pan card can help you complete specified financial transactions and meet applicable requirements, including when dealing with financial services such as Bajaj Finance.
What are the general uses and benefits of a PAN card?
The PAN card uses broadly include identity verification, tracking tax payments and completing financial and utility-related transactions.
| Use | Benefit Description |
|---|
| Identity verification | A PAN card can serve as identity proof, with your name, photograph and other details. |
| Tax tracking | PAN helps link tax payments, returns and TDS records to the correct taxpayer. |
| Unique identification | A PAN provides a unique identifier that helps reduce errors and misuse in tax records. |
| Utility services | PAN may be accepted for specified electricity, telephone, LPG and internet connections. |
| Minor's financial identity | A PAN card for minors can provide additional proof of birth and help a minor become a nominee for financial assets. |
| TDS compliance | Furnishing a valid PAN helps apply the prescribed TDS rate; higher rates may apply when PAN is unavailable or inoperative. |
To learn how to use a PAN card for financial activities, check your free credit score with Bajaj Finance.
What is a PAN card used for in India?
The use of a PAN card in India covers four main areas: tax compliance, financial transactions, identity verification, and business or professional activities. These PAN card uses apply to individuals, businesses and other eligible entities.
| Use Category | Description | Who It Applies To |
|---|
| Tax compliance | PAN card for income tax helps with ITR filing, direct tax payments and claiming TDS refunds. | Taxpayers |
| Financial transactions | PAN is required for cash deposits of Rs. 50,000 or more, property transactions of Rs. 10 lakh or more, and specified investments of Rs. 50,000 or more. | Individuals and entities |
| Identity proof | PAN can be used as identity proof when dealing with banks, NBFCs and government bodies. | Individuals and eligible entities |
| Business and professional | PAN supports GST registration, business account opening and company incorporation. | Businesses and professionals |
The use of a PAN card helps connect tax, financial and business activities to the correct person or entity.
