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

Note:

1. How to Apply and Rectify online PAN Application
2. Ask the Experts and Discuss Your Problem relating to Income Tax.