PAN Card Uses
Full form: Permanent Account Number
Tax & DeductionsPAN is a 10-character alphanumeric unique identifier issued by the Income Tax Department. Mandatory for all financial transactions above specified limits, income tax filing, and KYC. PAN links all your financial transactions to your tax record.
In detail
PAN mandatory situations:nIncome tax filing (mandatory if income above Rs 3L or have TDS)nBank FD above Rs 50,000 (TDS at 20% without PAN vs 10% with PAN)nPurchase of property above Rs 10LnCash deposit above Rs 10L in a yearnMutual fund investment above Rs 50,000 per transactionnForeign travel above Rs 50,000nCredit card applicationnDemat account openingnnCentral KYC (CKYC): PAN is the primary identifier in the CKYC registry -- once you complete KYC at one financial institution with PAN, the CKYC number allows faster KYC at other institutions.
Real-life example
Meera makes a Rs 1L FD without PAN. Bank deducts TDS at 20% (Rs 20,000) instead of 10% (Rs 10,000). Extra Rs 10,000 TDS deducted. She can claim this as advance tax credit in ITR but the additional deduction was avoidable. Lesson: always link PAN to all financial accounts.