Saturday 21 November 2015

Have you furnished your PAN number to your bank?

Do you know that as per Income Tax guidelines the banks are bound to deduct income tax at source @20% instead of normal TDS rate of 10% in case you have not provided your PAN number to the bank or bank has forgotten to map your PAN Number with your Customer ID.

What is PAN Card:

PAN Card is a 10 digit alpha numeric number where 10 digits represent the following:

  • First 3 digits are alphabetic series running from AAA to ZZZ
  • 4th character stands for status like "P" for Individual, "F" for Firm, "C" for Company, A for AOP(Association of Persons), T for Trust, "L" for Local Authority, "G" for Government, "H" for HUF, "J" for artificial judicial person.
  • 5th character stands for first letter of the last name or surname of the PAN holder.
  • Next 4 characters are digits running from 0001 to 9999 generated by computing systems.
  • Last character is alphabetic check digit.

Benefits of PAN Card:
  • You can submit form 15G or 15H only if you have valid PAN Card
  • TDS is deducted @10% on interest on Fixed Deposits
  • You can View your Tax Credit (26AS) through Net Banking or by registering at Income Tax Site of GOI
  • You can claim refund of TDS wrongly deducted only if you possess the PAN Number
  • You can deposit cash even in excess of Rs.50000 in your account if PAN Number is entered in your bank account
  • You can avail the Credit Card facility only if you have submitted your PAN number to the Bank.
Mandatory Requirement of PAN Number:
  • Income Tax Return Filing
  • Payment of Advance Tax
  • Form 16/16A and Form 26AS
  • Purchase of Property
  • TDS on interest on Fixed Deposits
  • TDS on Rent
  • Applying for Home Loan
  • Medical Insurance Premium
  • Tax Saving Bank Fixed Deposits
  • PPF Deposits
  • Other Services
  1. How to Apply and Rectify online PAN Application
  2. Ask the Experts and Discuss Your Problem relating to Income Tax.

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