Central Government of India already take bold and big step to ban all Rs. 1000 and Rs 500 old notes and it is effected from midnight of 8th November, 2016. Now, Central Government of India bring a provision to amendment in section 14B in Income Tax Act. Now, this article helps you to know PAN card is mandatory for these banking transactions.
All we know very well PAN is an important ID proof of any person. PAN Stands for Permanent Account Number which is ten digit alphanumeric number. For example the number would be shown on PAN card in this sequence ARLMK0629Q.
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The sequence of 10 digit alphanumeric number is 5, 4, 1. First Five is alphabets, next four is the numbers and last 1 is any alphanumeric number. This laminated ID proof is used by the Income Tax Department to all those person who applies for it. This article helps you to know why PAN Card is Mandatory for these banking transactions.
PAN Card is Mandatory for These Banking Transactions
All we know very well that PAN card is an important ID Proof which is mandatory for different financial transactions. PAN is a unique identification number which is provided by the Income Tax Department. You can use PAN card for filling Income tax return, opening a bank account, receiving the professional fess, taxable salary, and other high value sales and purchase transactions.
PAN Card is mandatory for these banking transactions during opening a new bank account, apply for new landline or mobile connection, purchases foreign currency, deposit above Rs. 50000 amount in any bank account, purchases or sales any vehicles, properties and many more.
After the ban the Income Tax Department keep eyes on all those bank transactions in which cash is deposited. The Central Board for Direct Taxes (CBDT) made the amendment in section 14B in Income Tax Act. Now, Government keep eyes on all those bank transactions which is greater than Rs.50000 or total deposit amount is Rs. 250000 between the 9th November 2016 to 30th December 2016.
Most of the person who does not want to give his PAN Card information has to deposit less than Rs. 50000 amount in different bank accounts. Now, PAN Card information is essential if total deposit amount is up to Rs. 50000 in any bank account then they have to show his PAN Card detail.
If you try to buy bankers cheque, pay order, bank draft from any bank or co-operative bank which amount is greater than Rs. 50000 within a day then you have to show your PAN Card information. Most of the person has to open different bank accounts with same name in different banks. Now if you make any transaction in any account they will be checked the Income Tax Department.
Anybody in the India has to apply for PAN Card. There are Lot of person who does not have PAN card easily send online application for PAN Card either from NSDL or Incometaxindian Website. PAN is an important universal identification document. PAN is allotted by the Income Tax Department to all those person who has to applies for it. It is an important document which is used to keep track of all financial transactions which is made during the financial year.
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Given person must have to use form 49A to apply the PAN Card.
If you are an Individual citizens, HUF, Registered companies, Registered Associations, Firms, including LLP, formed or registered in India or Local authorities.
49 AA Form
Given person must have to use form 49AA to apply the PAN Card.
If you are an individuals who are not an Indian citizens, Companies registered outside the India, Firms formed or registered outside the India, LLPs (Limited Liability Partnership) registered outside the India.
After reading PAN card is mandatory for these banking transactions article help most of the persons. If you have any suggestion regarding this article please write us in the comment box. Thanks to all.
Mahadeo Jee Prasad
Is pan necessary for taking cash payment of a cheque valued more than 50000 received from any person from payee bank at counter