Importance of PAN Cards in Financial Transparency in India

We all are familiar with the Permanent Account Number of PAN. Have you ever thought about the importance of PAN cards in the Indian economy? The tax department issues this card so that they can monitor income and taxation on the income. 

In this blog, we will try to understand the history of PAN cards in India, why they are important, the benefits you can have, and some additional help they can get you. When you apply for a loan using a DSA app, you need to fill out the online form and submit your PAN number there. Read the full write-up to understand the essentials for PAN cards and more.  

The History of PAN Cards in India 

It was the year 1972 when the first PAN card was issued. The government started issuing PAN cards to prevent any tax evasion. Since then, it has been common to make a PAN card in your name whenever you open any financial account. After 2003, the government permanently made PAN cards mandatory. Today, you can’t do any transactions if you don’t have a PAN card.  

Why This Card is So Important? 

PAN card belongs to your essential documents. Here are some of the reasons for having a PAN card- 

1. If you want to do your tax returns, having a PAN card is essential. It is your unique number. 
2. Suppose you want to open a bank account; this is only possible when you have a PAN card. 
3. As per the banking rules, when you want to transfer a big amount, having a PAN card is mandatory. 
4. Without a PAN card, you can’t even get any tax benefits or rewards. 
5. Finally, a PAN card can act as an identity proof. 

There are many more reasons for having this card. You must consult with an expert to learn more. 

Some of the Advantages Of Having a PAN Card 

Now that we know the importance of having a PAN card, we must understand the benefits of having this card- 

1. Transactions will be much easier when you have the PAN card with you. If you want to open a Demat account or apply for a loan, you must use your PAN card.  
2. Tax evasion could have multiple reasons. Some people forget to pay their taxes; others might have some complications. Better to have a PAN card and manage everything efficiently. 
3. When you have a PAN card, it will help you understand tax laws in India. Multiple tax matters need to be addressed. 
4. Usually, a PAN card is accepted all over the world. You can show it as your identity proof. 
5. Your PAN card will save your financial details and calculate your CIBIL score. Whenever you are applying for a new loan, having a high CIBIL score will surely help. Talk to a personal loan DSA if you don’t know much about choosing the right loan. 

Contribution of PAN Cards in Indian Economy

Since the use of PAN cards, we are getting the following impacts- 

1. In India, it is essential to have a PAN card and link it with your bank accounts. By using these unique numbers, the Income Tax Department can trace your financial activities. If there are any illegal transactions, they can easily find out that.
2. Tax compliance issues have been resolved greatly with the help of PAN cards. Every individual and business person should look after this aspect. 
3. As almost all the people in India now have PAN cards, it is easy to roll out government plans and check whether they all have the facility or not.  
4. For investment purposes, a PAN card is mandatory. In fact, having a card will seriously inspire you to make more long-term investments.     

Essential Tips That Might Help You 

1. If you don’t have a PAN card, it is easy to apply. Check the official website of NSDL or UTIITSL. 
2. Always keep your PAN card secure. Don’t share your PAN card number with anyone. 
3. Have you already linked your AADHAR card with the PAN card? If not, you must do so as soon as possible. 
4. If you have not updated your personal information, you must do so by visiting the official website. 

Talk to a professional to have other important aspects of PAN cards.