Permanent Account Number (PAN) is a ten digit alphanumeric number. It is issued in the form of a laminated card (called PAN Card), by the Income Tax department.
PAN Card: Key Points to Remember
- You must have a PAN to file your income tax return.
- You don’t need to necessarily file a return just because you have a PAN. You need to file income tax return only if your gross total income is above the exemption limit.
However, it is very important that you fill the same details as mentioned in your PAN Card while filing your income tax return. Hence, make sure that you enter your Name, Date of Birth, and Father’s Name as it is specified on your PAN card to avoid rejection of your return by the income tax department. You can verify your PAN at this link https://incometaxindiaefiling.gov.in/portal/knowpan.do.
When you need a PAN Card
You need to quote the PAN when you make transactions like:
- Sale/purchase of car for any amount.
- Time deposit exceeding Rs. 50,000.
- Sale/purchase of security (such as shares, mutual funds) exceeding Rs. 1 lakh.
- Application for phone connection.
- Payment in cash for bank draft or pay order exceeding Rs. 50,000 in a day.
Incorrectly quoting a PAN will make you liable for a penalty of Rs. 10,000. PAN is your personal identity. Don’t disclose it unless required. Keep a laminated photocopy of PAN card for use & keep the original PAN card at a secure place. It is a good practice to keep your PAN Card handy while filing income tax return.