We all know the importance of PAN card and Aadhaar card in India. And now the Supreme Court has ordered that if you do not hold a PAN card then you can use your Aadhaar card on some various transactions. So, today on this article we will cover all those transactions in which PAN card is required and all those other transactions in which Aadhaar card number is required. So, we have provided every key detail about this new law which has been passed by the Income Tax Department through the UTI and NSDL official websites.
PAN card is one of the most important documents which should be owned by an Indian citizen. A permanent account number (PAN) is a ten-digit alphanumeric number. It is issued by the Indian Income Tax Department. It is issued in the form of a laminated card to the citizens who have applied for it. Speaking of the importance of PAN card, there are many advantages of it. Tax invention checking is just one of them.
According to the Aadhaar act 2016, the UIDAI is responsible for all the activities undertaken to fully and functionally provide the Aadhaar card to the responsible citizens of India. PM Modi’s mission and vision through Aadhaar Card were to provide a Unique Identification number to all the citizens of the country. Moreover, the Aadhaar card is also said to be useful in providing good governance to the country. The Aadhaar card ensures security and confidentiality for authentication records of individuals.
Linking PAN With Aadhaar
Before we jump onto the conditions in which the Permanent Account Number is required and the conditions in which Aadhaar number is required. We also know that previously the government has also put into notice that the Aadhaar Card must be linked with the PAN card. The notification came out on March 31, 2019. The last date of linking PAN card with Aadhaar card is 31th December 2019. The government will prevail many benefits by linking the PAN card of the individual with the Aadhar card.
As mentioned by the Income Tax authorities through the official website of UTI and NSDL. It is clearly mentioned in the official notification with effect from 1st September, the PAN card holders can use Aadhaar card number instead of the PAN card number if they have lost or misplaced their Permanent Account Number .
Transactions Requiring PAN Number
The following conditions and transactions will only be possible if you submit your PAN number with the transaction:-
- If you are buying or selling two-wheeler or four-wheeler vehicle.
- While opening a bank account.
- If applying for a debit or credit card in the bank.
- While opening a Demat account.
- If paying cash of an amount exceeding ₹50,000 to a hotel or restaurant against the bill at any one time.
- If paying cash of more than Rs. 50,000 in connection with travel to any foreign country or payment for the purchase of any foreign currency at any one time
- If buying –
- Mutual Funds
- Shares all worth more than ₹50,000
- If depositing cash of over ₹50,000 in a day in any bank.
- If paying cash of ₹50,000 during any one day for purchase of bank drafts or pay orders or banker’s cheques from a banking company or a co-operative bank
- Now If your fixed deposit exceeds ₹50,000 in one go or aggregating to more than ₹5 lakh during a financial year.
- If paying more than ₹50,000 in a financial year to pre-paid payment instruments.
- If paying more than ₹50,000 in a financial year as life insurance premium.
- Selling or buying of securities, other than shares for an amount exceeding ₹1 lakh per transaction
- Sale or purchase, by any person, of shares of a company not listed on a recognised stock exchange for an amount exceeding ₹1 lakh per transaction.
- If Sale or purchase of any immovable property for an amount exceeding ₹10 lakh or valued by stamp valuation authority referred to in section 50C of the Act at an amount exceeding ₹10 lakh.
- Sale or purchase of goods or services of any nature other than those specified above for an amount exceeding Rs. 2 lakh per transaction.
Exemptions For PAN Card
After all the above-stated conditions there are also some exemptions which are given to certain citizens of India. The list of exemptions is given below:-
- If you don’t have PAN card, you can carry out any of the above transactions after signing Form 60 which states that you do not hold a Permanent Account Number and the income is below taxable limit.
- If you’re a minor, you can quote PAN card number of a parent or guardian.
- NRIs are also allowed to skip the PAN card ritual.
- According to rule 114B, the Central Government, State Governments and consular offices are not allowed to skip the PAN card numbers.
Transaction Requiring Aadhaar Card Number
As mentioned above there are following transactions which do not require your PAN card number and can be carried out by using your Aadhaar Card number. The list of transactions is given below:-
- Aadhaar card is only applicable for those citizens who already own the PAN card but has lost or misplaced it.
- If you have lost or misplaced your Permanent Account Number then you can use your Aadhaar Card number instead.