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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