Have you furnished your PAN number to your bank?
Have you furnished your PAN number to your bank?
September 23rd, 2021
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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:
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:
- How to Apply and Rectify online PAN Application
- Ask the Experts and Discuss Your Problem relating to Income Tax.
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