List Of Financial Transactions That Require A PAN Card

Pan Card

PAN is an essential financial document that is necessary for a wide range of financial transactions. Moreover, it is required for filing income tax returns, TCS or TDS credits, tax payments, and more. 

As per updates from the government dated January 1 2016, you will need to quote your PAN for transactions that are more than Rs. 2 lakh. The following sections will provide a list of various transactions that will require you to provide your PAN details. 

Financial Transactions That Require PAN

The primary objective of making PAN compulsory is to track different transactions that come with a taxable component. This enables the government to prevent tax evasion and subsequent revenue loss. 

Also Read- How To Check PAN Card Delivery Status?

Here are the following transactions where you will have to provide the PAN as per updates of January 1 2016:

1. Fixed deposit

If you have a fixed deposit with any bank that exceeds Rs. 50,000 or aggregates to Rs. 5 lakh for a financial year, you will need to provide your PAN. This is applicable for deposits you make in banks, NBFCs, cooperative banks, and post offices.

2. Immovable property sale or purchase

Any sale or purchase of an immovable property that is worth more than Rs. 10 lakh will require a PAN. The previous transaction limit for this was Rs. 5 lakh. 

3. Motor vehicle sale or purchase

You will need to provide PAN mandatorily while you purchase a four-wheeler. If you are selling your four-wheeler, you will also need to furnish your PAN. However, PAN is not compulsory during the sale or purchase of a two-wheeler. 

4. Opening a bank account

You have to furnish your PAN if you want to open an account with any private, nationalised or cooperative bank. PAN will act as identification proof. However, PAN is not necessary when you are applying to open an account under Pradhan Mantri Jan Dhan Yojana. 

5. Transactions through cash cards

If you are making a transaction worth more than Rs. 50,000 through any prepaid payment instrument such as social benefit cards, gift cards or remittances cards, you should furnish PAN details. 

6. Life insurance premium payments

Your premiums for life insurance policies will depend on your policy coverage and various other factors. If the total payment towards your life insurance policy in a year exceeds Rs. 50,000, it is necessary to provide your PAN details. 

7. Payment of hotel bills

PAN is mandatory for any hotel or restaurant bill payment that exceeds Rs. 50,000 and is paid in cash upfront. 

8. Foreign travel expenses

When you make any cash payment for foreign travel expenses that exceed Rs. 50,000, you have to provide your PAN details. PAN is also required if you make a purchase of foreign currencies that is worth Rs. 50,000 or more. 

9. Buying jewellery or bullion

The government has also made PAN compulsory for purchasing gold bullion or jewellery. You have to furnish PAN if you are buying gold worth Rs. 2 lakh or more through cash or card payment. 

10. Making cash deposits

For making a cash deposit of more than Rs. 50,000 in a single day, you have to mention your PAN details. 

11. Purchasing shares

If you are looking to purchase or sell shares of a company that is not listed on any of the stock exchanges, you will need to provide a PAN. However, the transaction should be worth Rs. 1 lakh or more. PAN is also essential for opening a Demat account. 

12. Purchasing mutual funds or bonds

If you make payments exceeding Rs. 50,000 to buy units of mutual funds, you need to provide PAN details. Similarly, you have to furnish PAN details while purchasing bonds or debentures worth more than Rs. 50,000. 

Also Read – How To Submit PAN Card Grievances?

Final word

If you are making any of these transactions or availing of any of these services, make sure to provide your PAN details. PAN is also required for any purchase of services or goods other than those mentioned above in case the transaction is more than Rs. 2 lakh. 

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This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.