It’s the 21st
century: a century where financial transactions cannot stand without
maintaining transparency and accountability. The government of India has been
working on devising ways to keep financial transactions safe and secure and one
of the ways is through the use of PAN cards.
PAN stands for Permanent
Account Number which is a government-issued card that helps people conduct
authentic and safe financial transactions. One can do a range of activities
with the help of a PAN card such as investing in securities, purchasing
property, or opening a bank account.
About The PAN Card
A Permanent Account Number
(PAN) Card is issued by the Income Tax Department of India and comprises a
ten-character alphanumeric identifier. The identifier helps people in
conducting a wide range of financial transactions within the boundaries of the
law. A range of people can apply for a PAN card for a range of uses. One can
apply for a PAN card from the comfort of home.
Please read Jaagruk
Bharat’s article on the PAN Card
which comprises all the components that one should know about the
government-issued card.
Role Of PAN Card In Financial Transactions
A PAN card plays a crucial
role in the process of authentic financial transactions. Its role is described
below in detail:
●
Tax: It is
crucial for everyone who pays an income tax to have a PAN card which helps in
avoiding unnecessary tax hikes.
●
Purchasing
assets: A PAN card is used for purchasing high-valuing assets like
property, jewelry, vehicles, etc.
●
Investments: One
needs a PAN card to open a Demat account through which investment in shares and
other securities is possible.
● Banking: A bank account can be opened
through a PAN card. Individuals can also apply for credit cards or avail of
loan facilities using their PAN cards.
As India is transitioning
from traditional methods of recordkeeping and general functioning to a
digitised system, PAN cards have proven themselves as a boon. PAN cards have
easily been incorporated into the new digital world without giving birth to any
new problems.
Online platforms request
users to do authentication using their PAN cards and then carry out whatever
they need to do. Now, PAN cards are also linked with Aadhar cards to increase
safety, security, and authenticity.
Conclusion
A PAN card is a
significant government-issued document that has been helping in keeping
financial transactions away from scams and errors.
To learn more about
government schemes and programs, please head over to Jaagruk Bharat, a platform
dedicated to breaking down the complexities of the schemes. You can also write
to Jaagruk Bharat on their community page for any queries you might
have.
