Importance Of A PAN Card

By Ashis Jain


A permanent account number (PAN) card is very important more so to people who file income tax returns or who engage themselves in large financial transactions. This card is used for a number of purposes; in the tax system and for investment purposes. Having this PAN card allows you to enjoy a number of benefits as it enhances your creditability in the eyes of financial institutions making it easy for you to qualify for numerous types of loans.

This card is normally helpful as it is used in tax system to help in tracking of all the financial dealings thus allowing the tax authorities to fix the rate at which an individual, business or a company should be taxed. This avoids cases of over taxation or under taxation to people operating businesses; thus allowing taxation in the right manner according to the business monthly income.

The card may as well serve as a nationally accepted proof of identity. This to because it haves your photograph, your name and address that can be used to locate your residential area. An individual can hold both the pan card and identity card and this could be helpful as one can comfortably supplement the other. In case you need to use you ID card and you do not have it, with this card you can use it to serve the purpose of ID card instead.

It is usually used to calculate the tax rate of every individual, thus determining the tax levy a person is required to pay. For this reason, absence of this card can lead to one being taxed at a higher rate than expected. Therefore, it is important for you to hold a card to avoid such cases that leads to higher taxation that could affect your business.

Misuse of this card is minimal. This is because, even if your card is stolen or lost, names and address may change but the number of the card remains the same. Thus, this reduces cases of this card misuse.

This card also enables one to get into a number of financial transactions from which you can open demat account. This allows you to sell, buy or share property and other assets. Whenever you are carrying out transactions that involve purchases or sales of immovable assets, you would be needed to quote the number of pan card for reference thus this card is very important.

This card ensures that there are no fraudulent transactions you are likely to engage yourself in. This is because the way in which you transact with this card is usually transparent thus avoiding cases of one losing his or her assets or money. Thus, having this card is essential especially to people who engage in transaction with a lot of money.

This card as well enables you to operate bank accounts that are vital and beneficial to your business. Whenever a person is depositing a large amount of money to the account, he or she is needed to provide this card to ensure that the transaction is done in the right manner. The card is also needed when you are carrying out transfer of money from one account to another bank account to enhance security of money in the bank.




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