Cash Withdrawal without PAN Card
Do you want to withdraw money from the bank? But there is no PAN card, in such a situation people ask the questions that, Is Cash Withdrawal without PAN Card possible?, Is PAN card required for cash withdrawal? and the answer is cash withdrawal without PAN card is possible but with a few conditions required.
Is a PAN card really important while withdrawing money?
Cash Withdrawal without PAN Card – If you want to withdraw a small amount from the bank, you can easily do so without a PAN card. Now the question arises of exactly how much the small amount is.
According to the Central Board of Direct Tax (Cbdt) rules, if a person transacts up to twenty lakhs in a financial year, he must show PAN card, without PAN card such a person cannot withdraw or deposit from the bank.
Reserve Bank of India has also placed some restrictions on transactions without a PAN card. If you are withdrawing above fifty thousand then you must provide your PAN number. But banks ask for PAN card for huge amounts without taking any kind of risk.
See Also – How to Verify the Information on PAN Card?
In which transactions a PAN card is required
1. A PAN card is required if Rs.20 lakh is deposited in one or more accounts in any bank then post office in one financial year.
2. A PAN Card is required if Rs.20 Lakhs are withdrawn from one or more accounts in any bank then post office in one financial year.
3. A PAN card is required if you have opened a current account or cash credit account in the bank.
4. As per Reserve Bank of India rules for small accounts i.e. Jan Dhan account up to ten thousand transactions can be done in a month but if this limit is crossed then a PAN card must be issued.
Importance of PAN Card
Before knowing the importance of a PAN card, let us know what a PAN card is. The full form of a PAN card is a Permanent Account Number With the help of a PAN card we can understand the taxable income of a person.
There are different types of PAN cards including Company, Trust, Society, HUF, Partnership firm, etc. PAN Card is issued by the Income Tax Department of the Government of India.
Many important things are done very easily and quickly due to a PAN card. In the following factors, you will know the importance of a PAN card.
1. A PAN card is used as proof of identity.
2. A PAN card is known as the most important document if a person wants to register a business.
3. PAN card plays a very important role in taxation. From the PAN card, we know the taxable income of a person.
4. A PAN card is important while getting a phone connection.
5. A PAN card is required while applying for a gas connection.
6. A PAN card is required while opening a Dmat account.
7. A PAN card is important while investing in mutual funds.
8. A PAN card is required while opening a bank account. Even without a PAN card, a bank account can be opened, but there are financial restrictions on such an account and a large amount of transactions cannot be done in such an account.
9. A PAN Card is required for any financial transaction.
10. PAN cards are important while filing tax returns.
11. If your bank account does not have a PAN card attack and you want to do more than fifty thousand transactions, it is impossible without a PAN card, without a PAN card you cannot do such transactions.
In applications like Dream Eleven or Winzo, it is said that you can withdraw money without a PAN card but in these applications also you have to submit a PAN card first. To be honest PAN card is not always necessary for withdrawing money but you have to submit a PAN card at least once to the bank. The gaming applications like Dream Eleven or Winzo, a PAN card has to be submitted at least once.
Rules regarding PAN Card
1. If a person withdraws or deposits more than twenty lakhs in a bank account in a financial year, it is mandatory for him to show a PAN card or Aadhaar card.
2. The limit of twenty lakhs is based on cumulative deposits or cumulative withdrawals.
3. Income Tax Rules 1962 of CBDT have been amended to lay down new rules regarding PAN Card.
4. In these new rules, cash deposit or withdrawal transactions will be considered for one financial year and will include a commercial bank account, cooperative bank account, and post office account of the concerned person.
5. In this new regulation it is also mentioned that persons who want to transact large amounts should apply for a PAN card seven days in advance.
6. If a person wants to open a current account or a cash credit account, it is very important that they submit their PAN card.
7. Even if you are going to transact above 50000 in a day PAN card is important.