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.

The card is normally used in the income tax department to help them track their financial dealings of a certain period thus enabling them to calculate and fix rate at which businesses are taxed. It also helps them calculate the amount of taxable income within the businesses. This helps avoid a case where one is taxed less or more than expected.

Pan card is recognized and accepted as a nationally proof of identity. This is because it usually has your names, photograph and the address that tax authority can use to trace you. It can as well serve for the purpose of ID thus, it is important for the security of your ID card as you do not have to carry your ID card since pan card can supplement it.

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.

The Pan card enhances your creditability before the eyes of financial institutions enabling you to qualify for different types of loans. It as well enables you open a demat account that normally allows you to sell or purchase property and many other assets. During purchases or sales involving immovable assets like land, it would be vital as you are needed to quote its number for security purposes.

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.

The pan card also allows you to open and operate bank accounts. It is needed whenever a person is depositing lamp some money into the account to avoid him or her depositing to the wrong account. It is as well vital whenever a person is carrying out transfer of money from one account to another to enhance safety of his or her money.

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