financial services

The Importance of PAN Card is Now Increased and Redefined

The recent announcements made by income tax efiling authority of India have made PAN Card mandatory for all account holders. This provision will not only affect the taxpayers, but will also anyone who have an account with any bank or post office. One who does not fall under tax slabs are also required to produce PAN card to make a Fixed Deposit or to open an account. Even the banks have been advised to deduct money from the account that has no PAN card details. Also the wrong details providers will be penalized with a 20% deduction of the tax. Previously PAN card was only needed for filing income tax, but now, it is also needed for purchasing a car or a mobile phone. Any financial transaction or foreign travel will also require a PAN card after the new amendments announced.

A taxpayer will need to mention PAN card during income tax efiling even in case of filing for zero returns. This has been provisioned as a non-taxable person also maintains fixed deposits with banks and thus it requires proper identification. These rules are going to be active from April, 2017 and this will make it is very important to have a PAN card for every citizen of India. One must obtain PAN card details by this time period to stay away from worries for the future. Previously, it was only needed for the taxpayers exceeding tax free limits and also it was granted as a photo identity card. But the new announcements have redefined its importance and inevitability.

Even the widows with a annual income below INR 1.90 lakhs must have a PAN card and not providing such will deduct income tax from her bank fixed deposits. And for providing wrong details will cut double rated income tax from their deposits. The same will be applicable for any common citizen who is exempted from income tax efiling limits. So, there are still more than three months left to get a PAN card to avoid getting penalized. One just needs to apply with the filled PAN card application form and necessary documents to get a PAN card. Income Tax Department of India issues this card which comes with a 10 digit unique number. The card also contains Name, Father’s name and DOB and hence can be used as an identity card.

So, to comply with the new rules, one must start with applying to get PAN card details before April, 2017.

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