Does PAN Card necessary for all citizens of India?

Any individual with yearly income exceeds the basic exemption limit (Rs 2 lakh at present) or any organization/business exceed turnover of Rs 5 lakh is required to obtain a Permanent Account Number (PAN) by the Income-tax Act in India.

In addition; importers, exporters and persons liable to excise duty, service tax and sales tax is also required to have a PAN Card.

Note that if you do not have a PAN Card,

• The law made it mandatory for payers to withhold tax at higher ratesfor all your payments. This include your salary, bank interest or any other income.
• Permanent Account Number (PAN) is made compulsory from many cash transactions. The list of these transaction is keep growing. For example; it is required to provide your PAN number while payinghotel bills or buying air tickets for foreign travels of Rs 50000 and above.

So the answer to your question is; no it’s not necessary but if you are liable to pay income tax, then yes it’s required.

Similar Questions:

Is PAN number is mandatory for LehLadakh (J&K) people?

The above answer is applicable for people from all states in India including Jammu & Kashmir.