PAN Card for Transactions

1. Smooth Bank Transactions: Having a PAN is a must to have uninterrupted bank transactions. Whether it is personal banking or business, a PAN is required to eliminate transaction failures and to maintain easy access to the bank account. 

1. Simplifies Operating Structure: According to the new PAN rules, PAN can be used as a universal Business Identification Number (BIN). The entrepreneurs and business owners can use PAN for several regulatory processes, eliminating the need to register with various ministries. 

Commencing from Jan 01, 2016, the PAN Card has to be furnished during the following transactions:

1. Immovable Property - Purchase and sales of immovable property exceeding ₹10 lakh requires a PAN Card. The previous limit was ₹5 lakh, which has now been increased to ₹10 lakh.. Any of the properties that is valued by Stamp Valuation authority and exceeds ₹10 lakh needs PAN Card during transaction.
2. Motor Vehicle - When purchasing a four-wheeler, the individual will have to produce a PAN Card. A person selling his four-wheeler is also required to show his PAN for the transaction. However, PAN is not needed for the sale or purchase of two-wheelers.
3. Fixed Deposit - Fixed deposits with any bank that are more than ₹50,000 or ₹5 lakh in a year are supposed to be backed with a PAN Card. This rule also applies to term deposits with non-banking financial corporations (NBFCs) and Post Offices.
4. Opening an Account - A PAN card is mandatory for most bank activities.When opening an account with any of the banks, be it nationalized or co-operative, an individual has to produce his PAN as one of the documents for identification. Only accounts in Pradhan Mantri Dhan Yojana are exempted from producing the PAN.
5. Life Insurance Premiums - Life insurance premiums may vary on the plan and premium amount, as preferred by the policyholder. Premiums may be as low as ₹100 or high as ₹1 lakh, depending on the insurance provider. However, in any year if the premium tends to exceed ₹50,000, as per the new rule the policyholder will have to mention details of his PAN Card.
6. Cash Card - Payments made using cash cards also require PAN details. While making cash transactions through any prepaid payment instruments such as gift cards,social benefit cards or remittance cards, exceeding  ₹50,000 in a year PAN Card number should be mentioned.
7. Foreign Travel - Quoting PAN Card is mandatory for cash payments in connection with foreign travel or purchasing foreign currency of value more than ₹50,000.
8. Hotel Bill - One time bill payment of ₹50,000 or more in cash, in any restaurant or hotel requires the payer to quote his PAN details.
9. Cash Purchase of Bank Drafts - You need to mention PAN Card if you are doing cash purchase of bank drafts/ pay orders or banker's cheques exceeding ₹50,000 on any day.
10. Cash Deposit - High-value deposits or withdrawals require a PAN Card. Any deposit above ₹ 50,000 in a day is subject to PAN compliance. Cash deposits over Rs.10 lakh and cash withdrawals over ₹ 20 lakhs a year also requires a PAN.
11. Loan Application: A PAN is mandatory for all types of loans. To apply for home, auto, personal, and business loans, a PAN is needed.
12. Credit Card - It is mandatory to quote PAN Card number while applying for credit card at any bank or financial institution.
13. Purchase of bullion or jewelery - With effect from January 01, 2016, the finance ministry announced that purchase of gold jewelery or bullion worth₹2 lakh or more in cash or through card, furnishing PAN is a must.
14. Mutual fund or Bond Purchase - PAN has to be mentioned if bonds or mutual funds and stock investments exceed the purchase value of ₹50,000.
15. Company Shares  - Opening DEMAT accounts, used for purchasing shares in a company, in banks has PAN as one of the mandatory documents. Hence an individual who wishes to purchase stocks in an unlisted company or open a DEMAT account of more than ₹1 lakh should furnish his permanent account number.

Quoting the PAN Card number is mandatory under Rule 114B of the Income Tax Department . These changes have been introduced by the Government in order to reduce black money movement and increase tax payer base in the country.

New PAN Rules

The Income Tax Department has introduced many changes to the PAN rules in 2025. The major changes in PAN rules are as follows: 

1. PAN-Aadhaar Linking: The PAN-Aadhaar linking has been made mandatory for all PAN holders. If an individual does not link their PAN with their Aadhaar by 31st December 2025, their PAN will become inoperative. This means the holder of the PAN card cannot make bank transactions, file tax returns, or invest in stocks, mutual funds, etc. 

1. KYC Updating: For opening bank accounts, PAN holders are required to update their personal details, including contact number, present address, email ID, etc.