Benefits of the PAN Card :
1. IT Returns Filing: All individuals and entities who are eligible for income tax are expected to file their IT RETURNS A PAN card is necessary to fill IT Returns ad is the primary reason, as well as other entities, apply for more.
2. Tax deduction: it is very necessary for a person or entity to get their pan card because, if a PAN card is not linked with a bank account and the annual earning and saving deposits is more than 10,000/- then the bank would deduct 30% TDS instead of 10%.
3. Starting a Business: In process of starting a business a company or any other entity mandatory needs to have a PAN registered in the name of its entity. Tax Registration Number (TRN) is for a business that is obtained only if the entity has a PAN.
4. Identity Proof: PAN card serves a valid identity proof. Other than voter card, adhar card. PAN card is also accepted by all financial institutions and all other organizations as identity proof
5. Opening a Bank account: All public, private and co-operative banks have made it mandatorily for an individual or a company to have a bank account in its name in order to open a saving or current account only under Pradhan Mantri Jan Dhan Yojana, a person can open a zero balance account by using voter card or adhar card.
6. Claiming Income tax Return:-In case, the TDS deducted from a taxpayer’s income is more than the actual tax that he is supposed to pay. In order to claim the excess tax paid, the taxpayer has to have a PAN linked to his bank account.
7. Opening Demat Account:- PAN Card is mandatory for an individual or entity to open a Demat Account, which is needed to hold shares in dematerialized form.
8. Purchase and sale of Immovable Assets:- while making a sale and purchase of immovable assets having a threshold of above 10 lakhs rupees there is a need for a PAN card. which make an individual eligible to enter into transactions of sale or purchases of assets.
9. Time Deposit:- Deposits with post office, co-operative banks, non-banking financial companies, will also need PAN, deposits adding up to Rs.5 lakh or more every year will require PAN.
10. Foreign Travel:- Cash payment related to foreign travel of an amount more than Rs. 50,000/- inclusive of forex purchases require a PAN card.
11. Bank Draft, pay Orders ad Banker’s cheque:- PAN is needed for Bank Draft, Pay Orders ad Banker’s Cheque with a transaction of more than Rs 50000/-. This implies that transactions more than 50000/- will only need a PAN cards.
12. Cash Cards and Pre-Paid instruments:- Cash Payment adding up to more than Rs.50000/- per year will need PAN to be furnished.
Refer to TnC on the Website