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Finding your Demat account number using your PAN is a straightforward process. This blog will guide you through the steps to locate your Demat account number by leveraging your PAN, ensuring you can easily access and manage your investments with ease.
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How to create a demat account online?
To create a demat account online, you need to follow these steps.
Visit your broker's website/App and fill out the application form with the required details. Submit the form for further processing.
The brokerage firm will initiate the verification process, which involves uploading essential documents like your PAN card, proof of address, proof of identity, and other necessary KYC (Know Your Customer) documents.
The broker will then assign a unique Client ID and a 16-digit NSDL holding identifier, crucial for accessing and managing your demat account. This account will enable you to own and trade securities digitally, making it convenient and efficient for managing your investments.
How to check a demat account number From PAN?
Here are the steps on how to check all demat accounts with PAN.
1. Complete the application form with all the necessary details on the Depository Participant’s (DP) website/App. Ensure you provide accurate information to avoid any issues later on.
2. Fulfill the KYC (Know Your Customer) process by submitting your identity and address proof. Make sure to upload these documents along with your application form. The DP will then conduct the necessary due diligence on their end.
3. After the DP finishes verification, confirm your digital details with two-factor authentication. Make sure to provide an email ID and phone number for the verification process
4. After completing the digital authentication, verify your bank account and set up the Electronic Clearing Service (ECS) payment method. This will enable smoother and quicker transactions.
5. After completing all the necessary processes, you will receive a welcome email at your registered email address. you can expect to receive encrypted emails containing important account information, such as your account history. Each email will be linked with your PAN card number.
6. To find your demat account number search for emails from either the National Securities Depository Limited (NSDL), Central Depository Services Limited (CDSL), or your respective Depository Participant (DP). These emails will include your PAN card number and your Demat account number.
Importance of PAN card in a Demat account
You can open a trading account only as a single holder because it’s linked to your PAN card. The PAN card helps the Income Tax Department track your income, investments and tax responsibilities. This system ensures clear and easy monitoring of your market investments and tax liabilities. As a result, a joint trading account with multiple investors isn't possible since it would complicate the tracking of individual tax responsibilities.
Advantages of a PAN Card in a demat account
Now that you know how to find a demat account number using a PAN card, let’s learn the benefits of having a demat account.
● Unique Identification: The PAN card links to your DP account, providing a unique identification that makes it hard for anyone to misuse. This number allows you to confirm that the stocks and bonds in your account belong to you.
● Security: When you want to buy or sell shares from your demat account, your PAN card serves as proof that you're the authorized person for that account. Physical theft or fraud is not possible with a demat account. You can have remote access to your account to ensure the safety of your investments. Contact the authorities immediately if you suspect any unauthorized activity on your account.
● Collateral loan: Having a demat account connected to your PAN card is beneficial if you plan to secure loans using your shares. Usually, it's not allowed if your PAN card is not associated with the demat account.
● ITR Filings: When filing taxes, you must provide your name, address, and Demat account number. This applies to individuals as well as Hindu Undivided Families (HUFs) and companies when submitting their yearly financial statements. But you can only do that if your demat account is linked to your PAN card.
● Buying Foreign Currency: You can purchase foreign currencies using your demat account with certain restrictions. Dealers allow customers to buy money worth up to $50,000 per transaction. You must provide additional documentation and follow a formal KYC process for purchases above this limit.
● Investing and Purchasing RBI Bonds: RBI gold bonds and the RBI 8% bonds are directly purchasable into a Demat account. However, the registration requires your PAN card and Demat account numbers, emphasizing the importance of a mapped Demat account for a smooth process.
● Deduction in Taxes: You will be entitled to a tax deduction for investments through your demat account. This incentive is available for those who have invested over ₹50,000 in equity and debt instruments. Individuals with an annual taxable income of less than ₹5 lakh are not eligible for this concession.
Conclusion
By linking your PAN card to your demat account, you can easily find your demat account number, allowing you to manage your investments effectively. Follow the steps mentioned above to use PAN to retrieve your demat account number.
