Permanent Account Number(PAN) is provided to taxpayers and it helps them to pay taxes and file returns without inconvenience. It is mandatory to quote PAN in return of Income and during all correspondence with the Income-tax authorities. It is also compulsory to quote PAN in all documents pertaining to the following financial transactions :
- Opening a bank account;
- Getting a Credit Card;
- Sale or purchase of any immovable property valued at five lakh rupees or more;
- Sale or purchase of a motor vehicle;
- A time deposit, exceeding fifty thousand rupees, with a banking company;
- A deposit, exceeding fifty thousand rupees, in any account with Post Office Savings Bank;
All tax deductions at source for various receipts shall attract a higher rate (20%) if you don’t have a PAN, and you can’t claim that TDS until you have a PAN.