New Delhi: Voter Card is an important document like Aadhaar Card but Pan Card. However, most of the people consider PAN card as a necessary document only for income tax returns. But in reality, PAN card is important for many large financial transactions as well.

From opening a bank account to buying property and investing in shares, there are many activities where a PAN number is required. According to experts, through PAN, the Income Tax department monitors major financial transactions and ensures that the income and expenditure accounts of individuals are properly documented. Do you know if PAN card is mandatory in any transaction?

PAN is mandatory for a total of 5 transactions. In which cases PAN number is mandatory? PAN card is mandatory for purchase or sale of property worth more than 20 lakh rupees.

PAN number will be required if you buy anything more than 2 lakh rupees at a time. PAN is also mandatory for buying and selling of unlisted shares above 1 lakh rupees. If you buy a car or motorcycle worth more than 5 lakh rupees, you have to give a PAN card.

PAN is mandatory for opening demat account. What can happen if you give wrong PAN number? Giving wrong PAN number can lead to penalty.

As per rules, giving wrong or any other PAN number can result in penalty up to 10 thousand rupees. Also, problems like difficulty in getting tax credit, mismatch in documents may also arise. Therefore, special care should be taken while giving PAN number in any financial or tax related document.

The Income Tax Department analyzes this information using data analytics and modern technology. If a discrepancy is found between income and expenditure of a person, a notice may be issued seeking information. Hence, it is very important to follow PAN rules and provide correct information.