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PAN REGISTRATION

What is a PAN Card?

PAN, which stands for Permanent Account Number, is an essential identification number used for various financial and tax-related activities in India. A PAN card contains the PAN and identity details of the cardholder. It helps in identifying individuals for taxation purposes and stores all relevant financial data associated with the individual. Knowing your PAN is crucial for managing several aspects of your financial life.

Benefits of a PAN Card

• Income Tax Return Filing: PAN is mandatory for filing IT returns.
• Lower TDS Deductions: Furnishing your PAN can help save on TDS, as financial institutions deduct 20% more TDS on interest above ₹10,000 if PAN is not provided.
• TDS Refund Claims: Linking your PAN with your bank account helps in claiming refunds if the deducted TDS is more than your actual tax liability.
• Bank Account Opening: PAN is required as a valid identity proof while opening a new bank account.
• High-Value Asset Transactions: Buying or selling property or vehicles worth more than ₹10 lakh requires a PAN card.
• Large Financial Transactions: Any financial transaction exceeding ₹50,000 mandates the use of a PAN card.
• Investment in Financial Instruments: PAN is required for investing in mutual funds, stocks, bonds, etc.
• Cash Deposits: Depositing more than ₹50,000 in cash in a single day necessitates producing a PAN card.
• Life Insurance Premium Payments: PAN is needed if your total annual premium payments exceed ₹50,000 in a financial year.