Introduction
The PAN can be an immense source of help when it comes to various aspects of your life. One of these aspects includes finding your Demat account number with the help of the PAN. Though it might sound like a lot of work, the process is pretty straightforward. Here, we will look at how you can use your PAN card to find and use your Demat account number to help you easily access and manage your investments.
Checking Demat Account Number via PAN
There are certain steps involved to help you determine your Demat account number. These steps are listed below:
- When you first open a Demat account through your DP’s website, ensure that you fill in the application form with all the necessary details
- All the information you enter must be accurate.
- When filling out the KYC or Know Your Customer form, remember to submit your identity and address proof. This will help the DP do everything needed from their end to help you open the account.
- You need to provide both a phone number and email ID with your DP to help them process your form, after which you will have to confirm your details via two-factor authentication.
- Next, you need to verify your bank account details and also set up an ECS or Electronic Clearing Service payment method, which will help make transactions smoother.
- After every single process has been completed and verified, you will receive emails from your DP containing all the information you will need to operate your Demat account
- All these emails will be linked to your PAN card number.
- Any time you need to search for your Demat account number, you can search for mails from either NSDL, CDSL or even your DP.
- All these emails will have information about your PAN and Demat account number.
Understanding the Importance of PAN in Demat Account
Involvement of the PAN card in your Demat account is important for several reasons:
- Since your trading account will be linked to your PAN, you can open it only as a single-holder
- With the help of the PAN card linked to your Demat account, the IT Department can track your investments, the income received from them and your tax responsibilities.
Benefits of a PAN Card in Demat Account
Some of the main benefits of having a Demat account are listed below:
- With the PAN and its unique identification in place, the chances of a Demat account being misused become negligible.
- The PAN number provides authorization and lets buyers/sellers you connect with know that you are a genuine trader.
- When you link a PAN to your Demat account, the chances of you being able to secure collateral for your trades are higher.
- When your PAN card is linked to your Demat account, your ITR filings become easier as the process can take into account your name, address and Demat account number as well.
- Another benefit of connecting your PAN with your Demat account is that you will become eligible to purchase RBI gold bonds and the RBI 8% bonds directly into your Demat account.
- With the PAN card in tow, traders also become entitled to tax deductions on the investments that are made through the Demat account. for investments through your Demat account but only for those who have invested more than ₹50,000 in equity and debt instruments. This provision is not available for individuals having an annual taxable income of less than ₹5 lakh.
Conclusion
Finding your Demat account number with the help of PAN is indeed a simple process. But by linking your PAN card to your Demat account, there are quite a few benefits that you can enjoy as well.
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