Why do Companies Ask for a PAN Card Before an Interview?

Last Updated at: October 06, 2020
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The Central GST officials have recently exposed a Rs 1,500 crore financial fraud wherein persons owning fake firms used to procure gift cards from banks and sold or self consumed those by swiping on POS machines to pocket commission and evade GST. The officials also found data of one lakh PAN numbers from a person involved in the fraud.

Why do Companies Ask for a PAN Card Before an Interview

A PAN or Permanent Account Number is not just any ordinary string of digits and letters. As mandated in the Income Tax Act of 1961, a PAN is a must for all individuals, Companies, partnerships etc. The IT Department uses PAN to track all financial transactions. Therefore, if you do not have a PAN, you may be considered by the Department to be concealing information of your financial transactions from them.

Many companies and consultancies ask for PAN before scheduling an interview these days. Ever wondered why are companies asking for pan card no Well, there are many pertinent reasons why companies ask for pan card.  Go through this blog to know about those.

Why do companies ask for a pan card no before an interview?

1) Your PAN information is a means for the companies to know more about your identity; that too from a highly reliable source such as the Income Tax Department of the Government of India. Your PAN card contains your date of birth, father’s name, and specimen signature. Therefore, a PAN card helps the companies to verify these particulars from a reliable source. A proper identity check is often carried out by the companies to avoid impersonation of candidates by dummy candidates.

2) Another possible reason why companies ask for a pan card is- in case you get selected for the interviewed position, the company would require your PAN details to credit your salary, TA/DA or other entitlements. As per IT rules, income tax needs to be deducted at source for any kind of salary credited to an employee.

At times, a company may ask for the PAN card of your house owner. This will be required if you claim HRA exemption on the TDS deducted from your salary. Since 2013, the Income Tax Department has made it mandatory to submit the owner’s PAN if the annual rent is over Rs 1,00,000. U/s 10 (13 A) of the Income Tax Act 1961, if you are a salaried individual and receive HRA from the employer, you can get tax exemption.

 Be careful while giving your PAN details during interviews

In our previous section, we have discussed why companies asking for pan card no.  While there are some genuine reasons why companies ask for pan card,  some companies or consultancies, at times, ask for PAN and do not even schedule interviews. Some companies simply create a database of PAN details and resumes and show inflated records of their workforce to their clients or investors. In the IT field, there have been reports that some companies maintain fake employee records to meet the minimum employee criteria for bagging foreign contracts. Such fraudulent companies collect PAN cards and resume from candidates that appear for interviews. Then they project these to their clients as the details of their on-roll employees.

get your pan card 

Please note that not all companies resort to such fraudulent tactics of creating fake employee profiles. But, you need to be careful. Rather than providing your PAN details to consultancies or companies during interviews, propose that you would submit copies of PAN card or PAN details at the time of joining.

Frequently Asked Question (FAQs)

1. Can I have more than one PAN?

No. You can’t have more than one PAN. If you already have a PAN, you are not eligible to apply for another PAN. Section 272B of the Income Tax Act 1961 imposes a penalty of Rs 10,000 on individuals/entities with more than one PAN. Therefore, if you allocation of multiple PAN cards, you should surrender the additional PAN cards immediately.

2. What are the documents required while applying for a PAN card?

The following documents needs for PAN card application by an individual-

  1. Proof of identity (anyone from Driving License/Voter ID/Passport)
  2. Further, Proof of Date of Birth (anyone from High School leaving certificate/ pass certificate where the date of birth is mentioned)
  3. Proof of address (any one from Telephone Bill/Electricity Bill/Water bill/Pension Payment  Order)

3. I am a salaried employee. Can I file my IT return without quoting PAN?

It’s mandatory to quote your PAN while filing the Income Tax Return. Besides, you must quote PAN in all correspondence with the IT department, including your tax payments.

However, there is a relief for you if you have linked your Aadhaar with PAN. With effect from 1st September 2019, you can furnish your Aadhaar (instead of PAN) for all such transactions where quoting PAN is made mandatory. Thus, you can mention your Aadhaar instead of the pan while filing IT returns, provided you have linked your Aadhaar with PAN.

 

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Why do Companies Ask for a PAN Card Before an Interview?

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A PAN or Permanent Account Number is not just any ordinary string of digits and letters. As mandated in the Income Tax Act of 1961, a PAN is a must for all individuals, Companies, partnerships etc. The IT Department uses PAN to track all financial transactions. Therefore, if you do not have a PAN, you may be considered by the Department to be concealing information of your financial transactions from them.

Many companies and consultancies ask for PAN before scheduling an interview these days. Ever wondered why are companies asking for pan card no Well, there are many pertinent reasons why companies ask for pan card.  Go through this blog to know about those.

Why do companies ask for a pan card no before an interview?

1) Your PAN information is a means for the companies to know more about your identity; that too from a highly reliable source such as the Income Tax Department of the Government of India. Your PAN card contains your date of birth, father’s name, and specimen signature. Therefore, a PAN card helps the companies to verify these particulars from a reliable source. A proper identity check is often carried out by the companies to avoid impersonation of candidates by dummy candidates.

2) Another possible reason why companies ask for a pan card is- in case you get selected for the interviewed position, the company would require your PAN details to credit your salary, TA/DA or other entitlements. As per IT rules, income tax needs to be deducted at source for any kind of salary credited to an employee.

At times, a company may ask for the PAN card of your house owner. This will be required if you claim HRA exemption on the TDS deducted from your salary. Since 2013, the Income Tax Department has made it mandatory to submit the owner’s PAN if the annual rent is over Rs 1,00,000. U/s 10 (13 A) of the Income Tax Act 1961, if you are a salaried individual and receive HRA from the employer, you can get tax exemption.

 Be careful while giving your PAN details during interviews

In our previous section, we have discussed why companies asking for pan card no.  While there are some genuine reasons why companies ask for pan card,  some companies or consultancies, at times, ask for PAN and do not even schedule interviews. Some companies simply create a database of PAN details and resumes and show inflated records of their workforce to their clients or investors. In the IT field, there have been reports that some companies maintain fake employee records to meet the minimum employee criteria for bagging foreign contracts. Such fraudulent companies collect PAN cards and resume from candidates that appear for interviews. Then they project these to their clients as the details of their on-roll employees.

get your pan card 

Please note that not all companies resort to such fraudulent tactics of creating fake employee profiles. But, you need to be careful. Rather than providing your PAN details to consultancies or companies during interviews, propose that you would submit copies of PAN card or PAN details at the time of joining.

Frequently Asked Question (FAQs)

1. Can I have more than one PAN?

No. You can’t have more than one PAN. If you already have a PAN, you are not eligible to apply for another PAN. Section 272B of the Income Tax Act 1961 imposes a penalty of Rs 10,000 on individuals/entities with more than one PAN. Therefore, if you allocation of multiple PAN cards, you should surrender the additional PAN cards immediately.

2. What are the documents required while applying for a PAN card?

The following documents needs for PAN card application by an individual-

  1. Proof of identity (anyone from Driving License/Voter ID/Passport)
  2. Further, Proof of Date of Birth (anyone from High School leaving certificate/ pass certificate where the date of birth is mentioned)
  3. Proof of address (any one from Telephone Bill/Electricity Bill/Water bill/Pension Payment  Order)

3. I am a salaried employee. Can I file my IT return without quoting PAN?

It’s mandatory to quote your PAN while filing the Income Tax Return. Besides, you must quote PAN in all correspondence with the IT department, including your tax payments.

However, there is a relief for you if you have linked your Aadhaar with PAN. With effect from 1st September 2019, you can furnish your Aadhaar (instead of PAN) for all such transactions where quoting PAN is made mandatory. Thus, you can mention your Aadhaar instead of the pan while filing IT returns, provided you have linked your Aadhaar with PAN.

 

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