Essential Documents That You Must Have- Business News
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Essential Documents That You Must Have

Apart from proving your identity, these documents have other benefits that you may not know about. Read on to find out.

  • Delhi,  June 15, 2016  
  • |  

Gone are the days when you needed your identity proof documents on just a few occasions. Today, you might be asked for your Aadhaar card or PAN card while paying hotel bills or for purchasing a car or jewellery. The financial consequences of not having these documents could be significant.

For instance, apart from being an identity proof, several benefits have been linked to Aadhaar card, such as getting online appointment for marriage/birth certificate. So, don't think that just because you are not a beneficiary of direct benefit transfer, you do not need to have one.

Hitesh Singla, Principal Partner, Square Yards, says: "Registration of sale deeds is being withheld in some state registrar offices without Aadhaar cards despite the Supreme Court ruling that the card cannot be linked with essential services."

N. K. Prasad, President & CEO, CAMS (Computer Age Management Services), says: "Mutual fund penetration, especially in Tier-II and Tier-III cities, can be accelerated with Aadhaar-based e-KYC. Investors can now have a complete digital experience with Aadhaar based e-KYC and seamlessly invest in Mutual Funds." Here is the low down on what essential documents you should have and what they do.

AADHAAR CARD


Issued by: Unique Identification Authority of India (UIDAI), Government of India

Purpose: Verification of identity

What is Aadhaar card? Aadhaar is a 12-digit number code used for establishing identity on the basis of demographic and biometric information. It is equivalent to the social security number used in the US.

AadhaAr Usages: e-KYC: It can be used for instant e-KYC for online investment in mutual funds and purchase of insurance. SEBI, however, permits investment of only `50,000 in a financial year through Aadhaar-based e-KYC using one-time password on mobile for authentication.

Online Income tax return (ITR) submission: You can e-verify your ITR form provided your mobile number is registered in the Aadhaar card database.

Passport: You can get a fresh passport within 10 days by submitting the Aadhaar card along with a copy of the electoral photo identity card and the PAN card.

Digital Locker: Now you can store all your important documents such as marksheets and PAN card in a digital locker (https://digilocker.gov.in). For uploading documents you only need a mobile number, but by seeding your Aadhaar with your digital locker you can pull out documents from the issued section of the website.

Digital Life certificate for pensioners: A digital certificate is generated through Aadhaar-based biometric authentication of the pensioner, which gets stored in the Life Certificate Repository.

DRIVING LICENCE


Issued by: Regional Transport Office

Purpose: It certifies that a person is qualified to drive a vehicle. Also serves as identity and address proof.

What is driving licence? It is issued by individual states through their regional transport offices. For gearless motorcycles, the minimum age for getting a licence is 16. For other type of vehicles it is 18 years.

Insurance claim: The insurance company can reject your claim if you were driving without a licence.

PAN CARD


Issued by: Income Tax Department

Purpose: Used for tracking financial transactions.

What is PAN card? Permanent Account Number, or PAN, is a 10-digit alphanumeric number used for tracking your financial transactions (income, investments as well as big spendings). Here are the transactions where PAN card is required.

TDS: Banks can withhold tax at a higher rate of 20 per cent if you do not provide your PAN. Only 10 per cent is deducted if the bank has your PAN details.

Buying property: PAN is mandatory for buying and selling immovable property in India. NRIs can also easily buy property or engage in business in India with the help of PAN card without filing tax returns.

MANDATORY QUOTING OF PAN

  • For buying all goods or services over Rs2 lakh, including gold
  • During purchase/sale of immovable property exceeding Rs10 lakh
  • For mobile wallet transactions of more than Rs50,000
  • For opening a bank account, except Jan Dhan account
  • For hotel/restaurant bill payments above Rs50,000
  • Cash deposit in bank exceeding Rs50,000 in a single day
  • For purchase of foreign currency or cash payment related to foreign travel exceeding Rs50,000
  • Over Rs50,000 investment in mutual funds/debentures/RBI bonds/life insurance policy
  • For opening a demat account
  • Business or profession where total sales, turnover or gross receipts exceed or are likely to exceed Rs5 lakh
  • The Pension Fund Regulatory and Development Authority has started using PAN apart from Aadhaar for for online registration under National Pension System
  • PAN is also mandatory for buying or selling motor vehicles (other than two-wheelers)

PASSPORT


Issued by: Ministry of External Affairs

Purpose: Passport is needed for travelling abroad. It also serves as identity and residence proof.

Photo identity: It is a proof of identity, has your birth date, as well as residential address. It takes care of most of your requirements.

Visa-Free travel: Many countries allow visa-on-arrival such as Thailand or visa-free travel such as Nepal if you have a valid passport.

Unlike other documents you need to renew both passport and driving licence periodically.

VOTING CARD


Issued by: The Election Commission

Purpose: It makes you eligible to vote during elections.

Proof of Identity: The main purpose is voting. It is also used as identity and residence proof. ~~