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What are the benefits of a PAN card even if you are not earning

The common misconception regarding the Permanent Account Number (PAN) card is that you don’t need one if you aren’t earning a salary or paying income tax. Even if you are not earning, you will need the PAN card at some point in your life. In fact, even minors and students can enrol for a PAN card. A PAN card is the equivalent to an identity card today and is mandatory for a wide range of financial transactions.


Even if you don’t have an income, it still may be a good idea to get a PAN. Here are the benefits of a PAN card:

  • 1) It’s widely accepted as an identity card. You can link it to your Aadhaar card and Voter ID. You can also use it to get utility connections like landline phone, electricity, gas, etc.

  • 2) Through the use of your PAN card, you can open a new bank account. However, this rule is not applicable for schemes such as Jan Dhan which is a zero-balance savings account

  • 3) You have a need of your PAN card to make a cash deposit or withdraw money beyond INR 50,000. PAN card is also required when purchasing a bank draft, pay order or banker’s cheque that is more than INR 50,000

  • 4) You will need a PAN to apply for a credit card, make investments in fixed deposits, mutual funds, insurance, etc and take a loan

  • 5) You must submit a PAN card for currency exchange for foreign trips

  • 6) If you pay hotel/ restaurant bills beyond INR 50,000, you will need to produce a PAN card

  • 7) You will have a use of your PAN card when you buy a new vehicle. However, it is not mandatory for a second-hand car.

  • 8) You again have a use of PAN card while purchasing jewellery worth INR 50,000 or more

  • 9) PAN card number is mandatory while applying for Aadhaar card.

  • 10) A student loan is easy to access and acquire with the help of a PAN card

  • 11) If you submit a PAN card with your passport application, the processing time is reduced to 10 days.

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