Why do we need a PAN card?

We need a PAN card for a variety of reasons, including:

  • Filing income tax returns: A PAN card is mandatory for filing income tax returns in India.
  • Opening a bank account: Most banks in India require you to have a PAN card to open a bank account.
  • Investing in financial products: PAN cards are required for investing in mutual funds, stocks, and other financial products.
  • Applying for loans: PAN cards are required for applying for loans from banks and other financial institutions.
  • Purchasing or selling property: PAN cards are required for purchasing or selling property above a certain value.
  • Making high-value transactions: PAN cards are required for making high-value transactions, such as depositing or withdrawing large amounts of cash from banks.

In addition to these specific reasons, PAN cards also serve as a valid proof of identity and address. They can be used for a variety of purposes, such as opening a mobile phone connection, getting a passport, and applying for a driver’s license.

Overall, PAN cards are an essential document for all Indian citizens and residents. They are required for a variety of financial and non-financial transactions.

Here are some additional benefits of having a PAN card:

  • It can help you to avoid penalties and late fees from the Income Tax Department.
  • It can help you to track your financial transactions more easily.
  • It can help you to get better interest rates on loans and other financial products.
  • It can help you to protect your identity and prevent fraud.