Yes, a PAN number is mandatory for applying for and using credit cards in India.

Why it’s compulsory

PAN (Permanent Account Number) is mandatory for credit card application and usage in India because it is a unique identifier issued by the Income Tax Department of India, and helps the government keep track of financial transactions.

The government uses the PAN to track transactions to prevent tax evasion and money laundering.

How the government will track PAN

The government uses PAN to track financial transactions as all credit card transactions are linked to the PAN number. The information is reported to the Income Tax Department by financial institutions, including banks and credit card companies. This helps the government keep track of an individual’s financial transactions and ensures that taxes are paid on all taxable income. Additionally, the PAN helps to prevent fraudulent activities by providing a unique and permanent identifier for each cardholder.

what happen if I defaulted on my credit card

If you default on your credit card payment, the following consequences may occur:

1. Damaged credit score: Late or missed payments can negatively impact your credit score, making it harder to obtain loans or credit in the future.
2. Interest and penalties: You may incur additional interest charges and late fees, which will increase your overall debt.
3. Legal action: In severe cases, the bank may take legal action to recover the debt, including wage garnishment or bank account seizure.
4. Collection calls: You may receive calls from collection agencies trying to collect the debt.
5. Impact on future credit: Defaulting on a credit card can also impact your ability to get approved for future credit, rental applications or other financial services.

It’s important to make timely payments and keep your credit card debt under control to avoid these consequences

After default payment to credit card and loan, If I apply for a new pan card with different proof my loan or card will approve?

Applying for a new PAN card with different identification proof does not guarantee approval for a new loan or credit card. Financial institutions consider various factors when evaluating loan or credit card applications, including your credit history and score. If you have defaulted on the previous credit card or loan payments, this information will likely be reflected in your credit report and could negatively impact your ability to be approved for new credit.

In such cases, it is advisable to improve your credit score and rectify any past default before applying for a new loan or credit card. This may involve paying off outstanding debts, making timely payments, and demonstrating responsible use of credit over time.

I have PAN due to cibil score can I hide my PAN and apply for a new PAN Card?

No, you cannot hide your PAN and apply for a new PAN card to improve your CIBIL score. The PAN is a unique and permanent identifier assigned to an individual for life, and cannot be changed or altered.

If you have a low CIBIL score, the best approach is to take steps to improve it, such as making timely payments on all outstanding debts, keeping your credit card balances low, and avoiding applying for multiple loans or credit cards in a short period. Additionally, you can also obtain a copy of your CIBIL report to check for any errors or inaccuracies that may be affecting your score.

Then what is the way to improve my cibil score without paying a loan?

Here are some ways to improve your CIBIL score without paying off your loan:

1. Pay bills on time: Late payments hurt your CIBIL score. Pay your bills, including credit card and utility bills, on time to demonstrate responsible credit behaviour.
2. Keep credit card balances low: High credit card balances relative to your credit limit can lower your CIBIL score. Keep your credit card balances low to maintain a good score.
3. Limit new credit applications: Applying for multiple loans or credit cards in a short period can lower your CIBIL score. Limit new credit applications to only what is necessary.
4. Dispute errors: Check your CIBIL report for any errors and dispute them with the credit bureau to ensure that your report is accurate.
5. Be consistent: Consistently demonstrating responsible credit behaviour over time can improve your CIBIL score.

Remember, improving your CIBIL score takes time and requires a consistent commitment to managing your finances responsibly.

I have a domestic PAN, If I apply for NRI by hiding local PAN dept will issue New PAN

No, the Income Tax Department of India will not issue a new PAN if you apply for an NRI PAN by hiding your domestic PAN. The PAN is a unique and permanent identifier that is assigned to an individual for life and cannot be changed or altered. Attempting to hide or alter your PAN information can result in serious consequences, including fines and legal action.

If you have a domestic PAN and become an NRI, you should inform the Income Tax Department of India and provide the necessary documentation to update your status from a domestic taxpayer to an NRI. This will ensure that your PAN information is accurate and up to date and that you comply with all Indian tax laws.

I have dual PAN its an issue?

Having two PAN numbers is illegal in India and can result in serious consequences, including fines and legal action. The PAN is a unique and permanent identifier assigned to an individual for life, and having multiple PANs can create confusion and hinder the government’s ability to track financial transactions accurately.

If you have two PAN numbers, you should inform the Income Tax Department of India and provide the necessary documentation to consolidate them into a single PAN. This will ensure that your PAN information is accurate and up to date and that you comply with all Indian tax laws.

How to surrender PAN Card in India

Here is the process to surrender your PAN in India:

1. Obtain Form: You need to obtain the PAN Application Form from the official NSDL or UTIITSL website.
2. Fill out the form: Fill out the form with your personal and contact information, and select the “Surrender/Cancellation of PAN” option.
3. Provide reason: Provide the reason for surrendering your PAN in the form.
4. Submit form and documents: Submit the completed form along with any required supporting documents to the nearest NSDL or UTIITSL centre.
5. Wait for confirmation: The Income Tax Department will process your request and send you a confirmation of the cancellation of your PAN.

It is important to note that surrendering your PAN will cancel all your financial transactions linked to it, and may have tax implications. Therefore, it is recommended to consult with a tax professional or financial advisor before surrendering your PAN.