Friday, April 11, 2014

Benefits Of A PAN Card

By Ashis Jain


A Permanent account number is useful especially for people who usually file income tax returns. It has a number of applications ranging from its use in tax system to investment purpose. With the pan card, you are able to enjoy various advantages as it can be used to serve a number of purposes.

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.

This card may also be used to serve the same purpose as the national ID card. It normally has a photograph, the name and the address of the individual holding it. For this reason, it is very important as it can be helpful where you need to provide you ID and you do not have it at that moment. You can produce this card instead as it is a nationally accepted proof of identity.

The PAN card determines the tax levy you are required to pay. This means that without the card you are likely to be taxed at the highest rate possible since the tax system tends to calculate your tax rate with the help of this card. People that usually pay tax deducted at source and lack a pan card have a greater likelihood of paying the tax twice as this type of tax cannot be counted with the absence of this card.

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.

The card is as well used to ensure that your transaction is transparent with less or no frauds. This avoids you from carrying out transactions that could cause loss of property or money. Thus, you should enhance the use of this card as it ensures safety of both your funds and assets especially when you are dealing transactions that involve a lot of money.

The pan card is also used to open bank accounts and to carry out transactions relating large amount of money. For instance, if you were depositing money that exceeds the quoted amount, you would need this card. The card is also vital whenever you are transferring funds to different accounts within either the same bank or different banks.




About the Author:



No comments:

Post a Comment