Where is it used?
Most people believe that financial planning is required for their business as it plays an important role in this area. While this is true, it is equally important is that there is a need for financial planning for an individual also because the achievement of each individual’s financial goals is tough to achieve.
What kind of investments call for a PAN?
PAN has to be given for all kinds of investments. This means that there is no limit above which this is required and this results in a situation where even one rupee of investment requires the number. Dematerialisation accounts (Demat accounts) and mutual funds investments are two areas where this rule is being enforced.
A proposal where every application for a public issue will require a PAN is also in the pipeline. This is different from a situation where a PAN is required only when the amount invested crosses a certain figure.
For example the requirement earlier was that in many areas like mutual funds and primary market issues the PAN would have to be quoted only when the investment was more than Rs 50,000. This kept small investors out of the requirement to quote the number every time.
What does it mean for the investor?
This change will mean that every small investors will have to have this number otherwise the investment will be out of bounds for them. This might require some additional work for some investors, but it will also mean that tax authorities can track the entire investment of a person.
Quicktip: How to use your credit card wisely
A rule of thumb for using a credit card for payments is that don’t buy anything that you can’t afford to pay off in a year or less. It is also important to pay at least the minimum payment due plus the interest payment, or you could be sucked into a debt trap, all for a small amount that could have been cleared within weeks or months.