Pan Card: If you have not linked your PAN with Aadhaar by June 30, then your PAN would have been deactivated by now. Some of the consequences of having an inoperative PAN are that you cannot open bank fixed deposits and mutual fund schemes, among others. But today we will tell you which financial transactions you can do with an inactive PAN as well.
If you are also one of those people who have not linked their PAN card with Aadhaar card till June 30, then in this situation your PAN card would also have become inactive.
Let us tell you that PAN card is a necessary document for any financial transaction. Simply put, you have to provide your PAN number for financial transactions.
This work will not be possible due to PAN being inactive.
If your PAN has become inoperative then you cannot invest in bank FDs and mutual fund schemes. Also you cannot file Income Tax Return (ITR) or claim tax refund.
These financial transactions can be facilitated
However, it is a matter of relief that if your PAN card has become inactive, then even in such a situation, you are allowed to do some such financial transactions. However, these transactions attract higher Tax Deduction at Source (TDS) and Tax Collection at Source (TCS).
Let us know one by one which are the financial transactions that you can do even with an inactive PAN card:
- If you receive interest income from bank fixed deposits with inoperative PAN cards, the total interest on recurring deposits in a financial year is Rs 40,000 (Rs 50,000 for senior citizens), plus TDS.
- If you receive dividend of more than Rs 5,000 from companies and mutual funds in a financial year with an inoperative PAN card, you have to pay higher TDS.
- Can sell immovable property if the sale value or stamp duty value exceeds Rs 50 lakh per transaction, despite having an inoperative PAN card. Keep in mind that this also attracts a higher TDS .
- With an inactive PAN card, you can buy a car if the amount is more than Rs 10 lakh, but you will have to pay more TCS.
- With High TDS you can withdraw money from EPF account if the amount is more than Rs 50,000 and TDS is applicable
- With an inactive PAN card, you can pay rent to the landlord if the monthly rent is more than Rs 50,000 per month. Here also you will be charged higher TDS.
- Goods and services can be sold with high TDS if the amount exceeds Rs 50 lakh per transaction.
- Payment for contract work (such as hiring an interior designer) if the amount exceeds Rs 30,000 or Rs 1 lakh for a single contract. Here also higher TDS is levied.
- Receive commission or brokerage payment exceeding Rs 15,000. In this also you have to pay high TDS.
