Avoid using PAN card as an Identity Proof – Know when to quote PAN

  • Jai Sathish kumar says:

    Hi Sreekanth,

    Good Article,

    I have certain doubt with respect to HRA exmption and quoting of PAN Card of the employer. In a Financial year i have stayed in two different rented accomodation one for 4 months and another for 8 months. Both the places i have paid rent of Rs. 11000 per month. But each of the house owner is ready to share their PAN Card, as i have payed less than rs. 1 lac each of them. How could i Claim HRA exemption, without their PAN card copy available, for the rent i paid.

    Could you please clarify my doubt?

    Jai Sathish Kumar

  • manjunath says:

    I don’t have tin number to make sales bills . can I use pan card number to make sales bills

    • Sreekanth Reddy says:

      Dear manjunath ..I believe you cant use PAN number for the said purpose. Kindly take help of a CA and plan your business transactions.

  • Saahil says:

    When depositing a cheque of over 50,000, is it mandatory to enter the PAN number? If so, whose PAN number needs to be entered? The account into which the money comes into or the account from which the money comes from?




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  • Hemant Kumar says:

    Hello Sir,

    My Tenant is claiming more HRA from his company however in actual he is paying very less to me. I got to know all these thing when he asked me to give fake HRA recipit. Also from someone I got to know that he is showing some of his relative as actual landload of the house.

    Now what legal action can be taken against him. Also is there any liability that I have to pay to IT department.
    Please clarify.

    • Dear Hemant ..Why would you like to have a tenant like this, if you are not comfortable with him doing these kind of stuff, you may first ask him to show the correct details, else you may ask him to vacate the property.

  • Anupam says:

    Dear SreeKanth,
    I recently made a trancation of 95000 Rs at a hotel which said I did not need to quite my PAN for less than a laKh. Will I receive an IT notice? Also are minors Sent IT notice?

    • Dear Anupam .. PAN needs to be quoted only for a cash payment for a hotel or restaurant bill of Rs.50,000. Did you pay it in cash?
      Income earned by minors is generally clubbed with the parent’s/guardian’s income. So, they will get the notices (if any).

      • Anupam says:

        Yes in Cash I made the payment. Will it be treated a high value transaction will I be sent a notice

        • Dear Anupam ..As long as you file your ITR by disclosing your income, expenses and investments then do not worry, even if you get notices you can justify your payment(s). Keep the receipts for your future use.

  • Shyam says:

    Which address of employee will be shown in Form 16 . Will it be PAN database address or current address provided by Employee.

  • Joseph Rodrigues says:

    I am in Ausrtraia. I have separated from my wife,. As per the Court order I was required to give my property in India and I have signed the transfer papers and given her a Power of Attorney to do all that is necessary. Do I have to give her my pan card, I am not involved in any financial transaction in this matter
    Thank you

  • ashok says:

    Dear sir
    My mother has cash Rs 990000 (9.9 Lakh got through cheque always ) and i will send her also Rs 100000 from my salary acct through NEFT. She desire to deposit FD in the monthly income scheme . MY query is

    1. IT dept will ask about fund which i send into her account from my salary account ( in which i got only salary , no cash deposit in my salary acct) through NEFT. ??
    2. IT dept will ask about FD ?? however she has PAN card and her income including FD interest will be less than Rs 250000. She need to file IT return or not ???

    • Dear ashok,
      1 – May or may not ask. But you can show the documentary evidence about the transfers. You can treat these transactions as GIFTs. But kindly note that if she invests this gift amount and gets income then she may have to file income tax return (if applicable).
      Read: Gifts & income tax implications.
      2 – Even if her income is below exemption limit, she can file income tax return by disclosing the Gift (Exempt income) amount in her return.

  • Srikanth S says:

    Hi Sreekanth,

    Why is PAN needed here?

    “Payment in cash in connection with travel to any foreign country of an amount exceeding Rs 25,000 at any one time. Also, on Forex purchases.”

    What’s the logic behind it?

    Excellent article, as my travel agency was asking me to submit PAN for the above reason. At least, I know now they are not asking without any reason. I’d just like to know why.


    • Dear Srikanth,
      May be to have a check on cash transactions related to foreign travels & foreign exchange.

    • Jay says:

      The thinking (flawed) of our babus is – a person going abroad is either fabulously rich – so he/she better be paying IT, or, probably is making money by nefarious activities abroad.

  • Arpita says:

    Hello Sreekanth ,
    Thank u so much for proving this Information about PAN card.
    I agree with you except that Adhaar Card should be used as ID proof instead of PAN card.
    Great Article. Keep Sharing such post.

  • ashok kumar says:

    respected sir
    My wife and my brother’s wife are house wives . both earn by tuition . if both opened a joint account and deposit 5 lakh as FD . Is it taxble and would be asked by income tax deptt ??. if amount deposited is 6 lakh then what will be tax ??

    Ashok kumar

  • Sekar says:

    Dear sir,
    If I purchase vacant land below 10 lakhs. Should i submit my pan to government. Will the purchase informed to incometax department.

  • Mihir says:

    Sir I would like to purchase a vacant land.Govt Valuation 33 lacs,but actual buying cost 6.50 lacs which will mention in deed.Kindly tell me during income tax declaration any tax deduct?If deduct,on which amount?(Govt Valuation or Actual cost).

  • Raghav says:

    Sir, how can I ensure that my tenant does not use my PAN card for continuing his HRA? Is there any site like the incometax site that shows 26AS form where I can see who used my PAN card for HRA? Thank you very much for your time in advance.

    • Dear Raghav..I believe that there is no such provision to track the usage of PAN for the said purpose. There are many instances where PAN has been mis-used (may not be by the tenants but generally). In most of the cases the affected person has to prove his/her case and can come out of the problem, but it is a pain-some experience, unfortunately.

  • Nandan says:

    Could you kindly suggest best pension plan avaliable in market in which I need to pay premium for limited time say 5 or 10ys and can get fix retirement pension then after for life time. I request you to reply me on my email.

  • yudhister says:

    Hi, In august 2013 my brother sold his house. I deposited the whole amount to his saving a/c. While deposting money, Bank askd me for PAN Card No. So I gave them my PAN CARD Number. Now I want to ask to you should I give the details of this tranjection in my ITR.

    • Dear yudhister..You have done a wrong thing. Kindly do not include the transaction amount in your ITR as it is not done by you. In case if you receive any compliance notice from the IT dept, suggest you to respond to it by taking help of a CA.

  • vipul kumar says:

    Hi dear sir
    I have bank account in sbi bank. i want to know that pan card is required for cash withdrawal above 2 lack ?

  • DOM Agencies says:

    It has very good publication ,the information on pan card , Income Tax rules and knowledge for all ,thank you
    Will you please revert us which is the best for invesment Secondary market shares OR SIP mutual fund
    DOM Agencies

  • Nilesh Gandhi says:

    My VAT Tin No. and PAN was misused by some people for financial Transaction.

    The matter was cleared to the VAT dept. and they advised me to give declaration and clsoed my firm with effect from 01-04-2006. Also the same information was shared by the VAt dept to IT dept too.

    Now more than 4-5 years passed. I am helpless for business. I do get some job work but to get higher assignments I shall have registration.

    Now I want to know that still some people may be using the same No.s. Hence, I want to get rid of all this and start new business. can I surrender my existing PAN and get new one.

    Please let me know.

  • Gagan Raghavappa says:

    I can only invest up-to 60,000/- yearly in insurance plans.
    Please can you suggest what should be the correct ratio so that its not too overburdening financially.
    I earn 6LPA and I would like to invest for the following plans;
    1.) Personal Accident Insurance(self),
    2.) Term Insurance(self),
    3.) Health insurance(self),
    4.) Health insurance(Mom & Dad)
    Thanks for your blog, its a life saver.

  • Hello Sreekanth ,
    As Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department, to any person who applies for it or to whom the department allots the number without an application. Now PAN had been used as identity proof and Used for many purposes like opening bank account, Large transaction etc.
    Great Post. Keep Sharing

  • anil jain says:


    TDS is applicable on interest on R.D.with post office above ten thousand for the f.y.2015-16

  • I agree with all your points except that Adhaar Card should be used as ID proof instead of PAN card.

    Both IDs are linked with financial data hence should be avoided as much as possible. These should be used only for banking and taxation purpose.

    Thanks Sreekanth for writing much needed article. Indian janta need this education. I don’t understand why people use PAN card for rail ticket booking. This critical information is being printed and displayed publicly on rail coaches.

    Anyways, do you know if there was any loss reported because of PAN number misuse?

    • Dear Pradeep,
      Thanks for sharing your views.
      Slowly Aadhaar is also becoming an important document, hence it is advisable to be cautious while sharing Aadhar details too. Good point and agree with you.
      I have read few newspaper article about the mis-use of PAN details especially by Gold jewelers.

      • kalyani says:

        Providing all Bank A/c nos and IFSC code of banks for filing the ITR is surely risky if hacked by someone. Like it was published in the newspaper today that a person lost 1.6 Lakhs because someone gave an application for net banking on his behalf and transfered this amount o another persons account. The person is fighting his case in the consumer court since the bank is not willing to listen. This person had no net banking account.
        likewise anyone can get hold of a persons bank account no. From people employed in the Income tax Dept. By hacking or otherwise.
        isn’it too much asking by the Income Tax Dept ?

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