“I’m Not Earning So Do I need a PAN Card?” - Here Is Why You Do

There was a time when only taxpayers used to need a PAN card. However, things have changed with PAN and Aadhaar now become essential proofs that need to be submitted So here are a few situations where you will not be able to proceed if you do not have a PAN card even if you are still in college or not yet working.

10 Times When Even Non-Earning Individuals Will Need a PAN Card

• Opening a New Bank Account

  Here is a situation, you are going away to college and you need to open your own bank account, After all you do need money every month to manage expenses isn’t it? You go to a bank to open your account and the first thing they ask you for is a PAN card. Applying for a pan card is quite easy.If you need help here is where you can get it.

• Fixed Deposits:

  As an investment option be it towards a future fund or even a college fund in your name all investments now needs a PAN card. Opening a FD (fixed deposit) either in a bank or post office, unless you are a minor, you will need a PAN card. Any deposits amounting to more than Rs. 5 Lakh during the year will also call for submitting a copy of your PAN.

• Investments:

  Mutual funds are a good way for long term returns. It is also a good tax saving option. While it is mandatory to provide PAN details if the amount you invest is greater than Rs.50,000 when you buy mutual fund units, debentures or bonds. If you want to open a demat account to start dabbling in the stock market, PAN is again needed.

• Proof of Identity:

  We all love to travel don’t we? And if you are traveling within India and checking into a hotel or even entering into any of the monuments as a visitor then a proof of identity is a must. Your PAN card becomes most convenient as a commonly accepted ID. IF your hotel stay comes over 25,000/- then submitting your PAN is mandatory. Apply for your PAN today

• Loan Application:

  Students, there comes a time when you might need to apply for a student loan. As a housewife you might still want to apply for a vehicle loan or a personal loan. Whatever maybe the kind of loan or the reason you want one, you will need a PAN for sure.

• Aadhaar Card Application:

  Everyone needs to have an Aadhaar card now and for that you need a government approved identity proof. The PAN card is what is commonly used for this.

• A New SIM Connection:

  Need a new SIM for your phone? A proof of identity is a must and most use their PAN card for this.

• Travelling and Currency Exchange:

  When you are travelling abroad, it becomes necessary to have a PAN for currency exchange, particularly when it is for amounts greater than RS. 50,000

• Buying or Selling a Vehicle:

  If you plan to buy or sell a car registered in your name then it is mandatory to give a self attested copy of your PAN card. In fact any goods worth over 2 lakhs will need this. This goes for property as well.

• Buying Property:

  Keep your PAN ready if you plan to buy property in your name. Buying you to submit your PAN details.

There are many other situations where you will need a PAN and when the need can arise, you never know. It takes a minimum of 3 weeks to get a PAN so it’s best to apply for one if you don’t have one with you.