Wednesday, 24 June 2015

Get Financial Freedom by Getting a Pan Card

The Permanent Account Number (PAN) card has grown in popularity over the years and its importance too has risen significantly in the last decade. Now a PAN card has become an essential part of every Indian’s life and it is sort of mandatory for a person to hold a valid PAN if he wants to exercise his financial freedom.
The financial movement without a PAN might appear as a night mare to you.
pan card financial freedom

The PAN card can be used successfully for identification purpose and to track all the monetary information relating to the PAN card holding entity. The initial usage of PAN card was just to fill the ITR or Income Tax Return. But, over time, the PAN cards have been put to force in many other works and thus, have become a crucial property for individuals/companies/firms/NGOs, etc. Some common places where PAN cards find their importance is – stock market dealing, purchasing real estate or vehicles, etc.

Also, it is difficult for an individual to get an FD or RD (exceeding Rs. 50,000) in their respective banks without providing a PAN number. If the PAN card is not provided, bank will have the liberty to deduce a TDS of around 20 % or at the current rate, whichever appears higher. This is double the normal deduction i.e. 10 percent. Moreover, they won’t give you a TDS certificate for the deduction if you do not have a PAN.

If you are a frequent traveler and regularly go out-station, staying in hotels, it might become difficult. For you will have to furnish a PAN card copy to get a decent hotel and if you do not have a PAN card at the time of checking in (applicable only on restaurant/hotel bills exceeding Rs. 25,000), you might have to face a lot of trouble.

Moreover, paying money to travel agents can become a difficulty if you don’t have a PAN number. The same is applicable if you purchase foreign currency, worth of which exceeds, Rs. 25,000. Also, you might have to lose your rented home if you don’t have a valid PAN number, as the landlords too might ask you to furnish your PAN number or copy of PAN card.

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